The Government of Canada intends to introduce legislation extending permanent immediate expensing to eligible assets in rail and other transportation supply-chain industries. The Railway Association of Canada, while still reviewing details of the new Productivity Mega Deduction, called the announcement a significant step toward improving Canadian competitiveness, productivity and trade diversification. The measure is intended to help Canada compete with the United States and encourage investment in assets such as track, bridges, rolling stock and innovative technologies. RAC said railways invest billions of dollars annually to connect Canadian businesses with domestic and international markets, while transportation will be important to the government’s goal of doubling non-U.S. exports by 2035. A June 2026 independent report commissioned by RAC found that the policy would generate substantial additional annual private-sector supply-chain investment and increase GDP. RAC said its members want Parliament to adopt the legislation quickly.