Canada proposes 100pc depreciation for business aircraft

The proposal aims to incentivise business aircraft acquisitions in Canada.
The measure forms part of broader economic productivity initiatives.

The government of Canada is proposing to include business aircraft acquired on or after 15 September 2026 among the assets eligible for 100pc depreciation. Previously owners could deduct 25pc of an aircraft’s value each year.

Under the measure which forms part of what Prime Minister Mark Carney described as a productivity mega deduction for the country’s economy aircraft must be ready for operation while deductions for aircraft still under completion or refurbishment will roll over to the year they are ready to fly. Pre-owned aircraft also qualify.