26 Nov 2023

Introducing the Bill C-19 Tax Deduction

Save on Taxes with New and Used Equipment Purchases Before 31st December 2023

The Canadian government has recently launched the Bill C-19 tax deduction, providing businesses with a remarkable opportunity to save on taxes. This legislation offers tax relief to businesses impacted by the pandemic, allowing for a full tax deduction on new or used equipment purchases. Whether you’re in need of machinery or any other form of equipment, this deduction applies to all items available.

Here’s how it works: companies can now fully expense the price of new or used business equipment in the year of purchase, up to a maximum deduction of $1,500,000 for 2023. Imagine your company finances a new excavator for $100,000 in November 2023, with payments commencing in March 2024. By taking advantage of this deduction, you can declare the full amount of the machine ($100,000) as a Bill C-19 deduction. With a 26% tax rate, this equates to a net tax savings of $26,000. That’s $26,000 directly off your company’s annual tax bill, staying in your company’s bank account.

Not only do you enjoy significant tax savings, but acquiring this equipment also enhances your business operations, boosting efficiency and safety. So, by purchasing the equipment, your 2023 expenditures are now $26,000 better than they would have been without it. It’s a win-win situation!

Act fast to seize this opportunity, as the equipment must be purchased and put into service during the 2023 calendar year. With the option to “Buy Now and Pay in March 2024” and the incredible tax savings through Bill C-19, you can save $26,000 on a $100,000 unit by simply making a purchase before December 31, 2023. Don’t miss out on this chance to optimize your business and maximize your tax savings.