RAC welcomes federal plan to extend permanent immediate expensing for rail and supply chain assets

The Railway Association of Canada says it supports the federal government’s plan to introduce legislation that would make permanent immediate expensing available for eligible assets in rail and other transportation supply chain sectors.

RAC says it is reviewing details of the government’s new Productivity Mega Deduction but calls the announcement an important step toward improving Canada’s competitiveness, productivity and trade diversification. The measure is intended to align Canada more closely with U.S. tax treatment and encourage additional private‑sector investment in supply chain infrastructure.

RAC says rail is a capital‑intensive industry, with Canadian railways investing billions each year in track, bridges, rolling stock and technology to connect businesses to domestic and global markets. It says transportation will be central to the federal goal of doubling non‑U.S. exports by 2035, and that stronger investment conditions are needed across supply chains to support longer‑distance trade with more diverse partners.

The association says it has long advocated for permanent investment incentives. A June 2026 independent report commissioned by RAC found that such a policy would generate significant annual private‑sector investment and higher GDP. RAC says it hopes Parliament will move quickly to adopt the legislation.

RAC represents nearly 60 freight and passenger railways, along with industrial railways and supply companies. Its members move millions of passengers and about $400 billion in goods each year across Canada.