Back to News Canada has just introduced a new tax incentive that will allow business owners to deduct the full purchase price of capital equipment from their taxes.


Canada Introduces Tax Incentives for Capital Equipment Purchases

Canada introduces new tax incentives for capital equipment purchases


New Tax Incentives for Waterjet Cutting Systems Purchased after November 20, 2018

Thinking about buying a waterjet cutting system? Don’t wait! The Canadian government is introducing a new Accelerated Investment Incentive (AII) that will help you start generating additional profits for your company now. For machinery and processing equipment purchased after November 20, 2018, enhanced rules apply.

BEFORE
If you bought machinery after 2015 with the intention of using it before 2026, a temporary, accelerated rate of 50% was used on a declining-balance basis.

NOW
If you buy machinery after November 20, 2018 and use it before 2024, you’re eligible for a first-year deduction of 100%.

Restrictions
If the equipment has been used, or acquired for use, for any purpose before you buy it, the Accelerated Investment Incentive applies only if both of these conditions are met:

  1. Neither the taxpayer nor a non-arm’s-length person previously owned the property; and
  2. The property has not been transferred to the taxpayer on a tax-deferred “rollover” basis.

Questions?
Visit the Accelerated Investment Incentive fact page for more information.



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