Transport Canada announced that the Ottawa-Montreal segment had been chosen as the starting point for ALTO high-speed rail.
The project is planned as Canada's first high-speed rail network, running about 1,000 kilometres from Toronto to Quebec City.
Transport Canada said the system is expected to reach speeds of up to 300 kilometres per hour and cut travel times in half.
The route would connect close to half of Canada's population. That gives the project significance beyond passenger convenience because transportation capacity can affect labour mobility, business travel, housing patterns, and regional productivity.
ALTO estimated that the project could boost GDP by up to $35 billion and create 51,000 jobs during construction.
The source also tied the project to Canadian supply chains, including steel manufacturing, concrete production, electrical systems, digital technologies, and skilled trades.
The federal government has identified ALTO as a transformative national project and said it will receive support from the Major Projects Office.
The tax link is not a new credit or rate change. It is the public-infrastructure channel: a project of this size can affect federal spending, procurement, productivity, commuting costs, and the economic base that supports future tax revenues.