Federal and Provincial Tax Incentives for Heavy Equipment

Written By: Frontline Machinery
Date: October 28, 2021

Federal and provincial tax incentives are creating big opportunities for companies to save money while investing in new heavy equipment including crushers, screeners, grinders, shredders, and more. Read below for more details.

Federal Government Triples Deduction

As part of the federal government’s aim to boost business investment, the 2021 budget proposed a new temporary measure incentivizing capital investments by tripling the first-year deduction for construction equipment purchases from 15 percent to 45 percent.
• Applies only to new purchases by CCPC’s of property “available for use” between Budget day and January 1st, 2024.
• Taxpayers can write off 100% of the cost of eligible property up to a total of $1.5 million per year until the end of 2023.
• Immediate expensing is in addition to regular CCA.
For more details visit: https://www.bdo.ca/en-ca/insights/tax/tax-articles/immediate-expensing-ccpcs/

B.C. Government Implements PST Rebate

The B.C. government is providing a temporary provincial sales tax (PST) program to help corporations recover from the financial impacts of COVID-19.
• The rebate acts like a refund but is separate from the existing PST Refund process.
• Corporations can apply to receive an amount equal to the PST they paid between September 17, 2020 and March 31, 2022 on qualifying machinery and equipment.
• The rebate applies to PST paid between September 17, 2020 and March 31, 2022 on qualifying machinery and equipment that are considered capital assets.
For more details visit: https://www2.gov.bc.ca/gov/content/taxes/sales-taxes/pst/rebate-machinery-equipment

Frontline Machinery does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.