National association connects federal budget measures with its September policy submission and proposes practical steps to improve access, implementation and results.
Brampton, ON, November 6, 2026 :- Budget 2026 reflects a key investment priority advanced by the Canada Truck Operators Association (CTOA) in its September policy submission: permanent immediate expensing for eligible trucking equipment. CTOA is now proposing practical steps to ensure small and mid-sized carriers, owner-operators and professional drivers across Canada can benefit from the budget’s measures.
In its Budget 2026 policy submission, submitted to Finance Minister François-Philippe Champagne on September 10, 2026, CTOA called for accelerated investment incentives for trucks, trailers, safety equipment and productivity-enhancing technology. It also proposed targeted modernization support, improved access to trade-response programs and direct small-carrier participation in federal transportation policy.
Budget 2026 proposes to make immediate expensing permanent through the Productivity Mega Deduction. The budget identifies heavy freight trucks as an illustrative example of potentially eligible equipment acquired on or after September 15, 2026.
Specific eligibility remains subject to final legislation, applicable tax rules and Canada Revenue Agency determinations.
“Budget 2026 moves in a positive direction for Canadian trucking, and CTOA is ready to help government turn these measures into practical results,” said Tej Dulat, Director of Government and Public Affairs at CTOA. “Our role is not simply to identify gaps. We are bringing workable proposals, direct operating evidence and the national perspective of the smaller transportation businesses that will have to use these programs in the real world.”
As part of that work, CTOA is prepared to organize a national user panel of small carriers, owner-operators and dispatch professionals to help government test proposed digital processes before national implementation.
Representing the operating backbone of Canadian trucking
Canadian trucking is overwhelmingly a small-business industry.
Innovation, Science and Economic Development Canada data show that 99.5 per cent of truck-transportation employers have fewer than 100 employees, while 83.4 per cent have fewer than five employees.
Transport Canada reported 136,664 trucking businesses as of December 2022, including 83,898 businesses without employees, demonstrating the significant presence of owner-operators and very small transportation businesses within the industry.
Large national fleets generally have dedicated resources to manage taxation, compliance, technology, financing and government-policy requirements. Smaller carriers often manage the same responsibilities with limited administrative capacity while also dispatching trucks, serving customers and maintaining day-to-day operations.
CTOA represents small and mid-sized carriers, owner-operators, professional drivers, dispatchers and other transportation participants across Canada. Its role is to ensure that their operational experience is directly reflected when national policies and programs are designed.
“Policy designed with carriers of different sizes at the table will work better for the entire industry and for Canada’s supply chain,” Dulat said. “Small carriers are not asking for lower standards. They are asking for programs, rules and enforcement processes that recognize how transportation businesses of different sizes actually operate.”
Measures welcomed by CTOA
CTOA welcomes several Budget 2026 measures with potential benefits for trucking and Canada’s supply chain, including:
- Proposed permanent immediate expensing for eligible capital investments, which could support fleet renewal, safety improvements and transportation productivity.
- $55.3 million over two years for Transport Canada to advance digital trade processes, test new tools, update relevant frameworks and support industry adoption.
- Investments intended to modernize and stabilize border technology.
- Strategic trade-corridor planning and a Transportation Projects Office intended to improve coordination and reduce infrastructure bottlenecks.
- Continued federal diesel-excise relief through January 31, 2027, followed by a 50 per cent rate for February and March before the standard rate is scheduled to return on April 1, 2027.
- Measures supporting stronger and more consistent enforcement against deliberate tax, employment, safety and regulatory non-compliance.
Turning immediate expensing into practical investment
Immediate expensing can be valuable, but it is a tax measure, not a grant, rebate or financing program.
A carrier must first be able to purchase or finance equipment and generate sufficient taxable income to use the deduction. For transportation businesses facing freight-market uncertainty, high insurance costs, expensive financing and tight working capital, a tax deduction alone may not make an investment possible.
CTOA’s September submission proposed a Small Carrier Modernization Stream offering:
- A 30 per cent cost share.
- Maximum support of $30,000.
- Advance-payment options for qualifying businesses with fewer than 20 employees.
- Eligible investments in safety, fuel-efficiency, anti-idling equipment, cargo security and operational technology.
This targeted model would complement the Productivity Mega Deduction by helping smaller businesses overcome the upfront cost barrier while supporting safer, more efficient and more productive trucking operations.
CTOA will seek working discussions with the federal government to advance this proposal as Budget 2026 measures move toward implementation.
Digital trade must be designed with its users
CTOA supports the budget’s investment in digital trade and the objective of allowing businesses to provide information once for secure use across relevant federal departments and agencies.
Digital modernization should reduce duplicate submissions, unnecessary paperwork, border delays and administrative costs. It should not simply convert every existing paper requirement into another digital form.
CTOA is seeking direct participation for small and mid-sized carriers in the federal working groups and implementation processes shaping digital trade and transportation policy.
Smaller fleets face different technology costs, staffing limitations and operational pressures than organizations with dedicated compliance and information-technology departments. Their participation should begin while systems, standards and requirements are being designed, not after the principal decisions have already been made.
“Consultation after a system has been designed is not a substitute for participation during the design process,” Dulat said. “CTOA can bring carriers, owner-operators and dispatch professionals directly into practical testing so government can understand how proposed systems will function in day-to-day operations before they are rolled out nationally.”
The proposed CTOA user panel would test digital processes, identify unnecessary duplication and assess technology costs and implementation concerns from the perspective of smaller transportation businesses.
Five practical proposals from CTOA
To help Budget 2026 deliver results across the trucking sector, CTOA proposes that the federal government:
- Establish the Small Carrier Modernization Stream proposed in CTOA’s September submission, providing accessible, cost-shared support for safety, security, fuel-efficiency and productivity investments.
- Provide direct small-carrier participation in the working groups and implementation processes shaping digital trade, transportation corridors and federal trucking policy.
- Publish clear Canada Revenue Agency guidance explaining which tractors, trailers, refrigerated equipment, shop machinery, safety systems and fleet technologies qualify for the Productivity Mega Deduction, including the treatment of leased assets and equipment owned by incorporated owner-operators.
- Make tariff-response programs accessible to smaller carriers by reviewing minimum-revenue requirements, simplifying applications and establishing a practical pathway for otherwise viable transportation businesses that fall below existing thresholds.
- Build trucking requirements into national trade-corridor planning, including truck parking, first- and last-mile roads, border capacity, port access, driver facilities and terminal turnaround times.
CTOA also supports firm action against businesses that deliberately evade tax, employment, safety or other legal obligations. Enforcement should be consistent, evidence-based and focused on proven conduct, with clear guidance, written reasons and accessible review processes.
“Small carriers form the operating backbone of Canadian trucking,” said Jas Shoker, President of CTOA. “When government includes them at the design stage, programs become easier to use, compliance improves and public investment delivers stronger results. CTOA is ready to bring that practical industry experience to the table.”
Important guidance for carriers
CTOA advises carriers not to accelerate a major equipment purchase solely because of the Budget 2026 announcement.
Before purchasing, businesses should obtain written professional advice concerning:
- Whether the specific asset qualifies.
- When the equipment is considered acquired and available for use.
- Whether the business has sufficient taxable income to use the deduction.
- How leased, used and specialized equipment will be treated.
- Whether financing and projected freight revenue support the investment.
Next steps
CTOA will seek working discussions with Finance Canada, Transport Canada, the Canada Revenue Agency, the Business Development Bank of Canada and Canada’s regional development agencies.
The association will continue bringing direct carrier evidence into the federal policy process through national member consultations, carrier-submitted operating information and the National Trucking Industry Pulse Survey.
“Budget 2026 provides a useful foundation,” Dulat said. “CTOA is ready to work with government, regulators and industry stakeholders so implementation reaches the people operating trucks, employing drivers, managing freight and keeping Canadian communities and businesses connected.”
About CTOA
The Canada Truck Operators Association is a national not-for-profit representing small and mid-sized carriers, owner-operators, professional drivers, dispatchers and transportation-industry participants across Canada.
CTOA advances practical, evidence-based policy focused on road safety, responsible compliance, fair enforcement, competitiveness and a resilient Canadian supply chain. The association works with governments, regulators, law enforcement and industry stakeholders to bring direct operating experience into decisions affecting road freight.
For further information:
Jas Kaur
Government and Public Affairs
Canada Truck Operators Association
jas.kaur@thectoa.ca
416-443-0042
thectoa.ca