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Canadian aircraft owners operate under a different depreciation framework than many U.S. buyers. While U.S. operators have benefited from first-year bonus depreciation provisions, Canadian aircraft generally remained subject to capital cost allowance's declining-balance approach, enhanced since 2018 by the Accelerated Investment Incentive but still spreading deductions over multiple years rather than allowing a full write-off in year one. A new federal proposal could narrow that gap dramatically, changing the math for buyers considering whether now is the time to upgrade, buy or replace an aircraft. The proposed Productivity Mega Deduction would permanently allow immediate expensing for most depreciable property acquired on or after Sept. 15, 2026. Eligible assets would generally be deductible in full when placed into service rather than depreciated over multiple years. The proposal includes previously used property, provided the buyer and related parties did not previously own the asset, and the transaction was not completed through a tax-deferred rollover structure. Unlike many aviation incentives that primarily benefit manufacturers, this proposal directly touches the existing fleet because qualifying pre-owned aircraft would also be eligible. That means the impact could extend into used jets, turboprops and helicopters already listed for sale. If adopted, the proposal would likely influence purchasing timelines throughout the Canadian aviation market. Immediate expensing generally improves after-tax acquisition economics, encouraging buyers to move forward with their purchases. The benefits would not be limited to OEM production lines and could support transaction activity across the existing fleet. Why it matters While this could be enormously beneficial to the Canadian marketplace, it only matters if the measure as written becomes law. The government has released draft legislative language, but it still needs to move through the parliamentary process before buyers can reap the rewards. Brokers and advisors should treat this as a potential windfall worth monitoring, not an immediately actionable tax benefit.