Tax Deductions for New and Used Equipment Purchases under Bill C-19

How to Use the Bill C-19 Tax Deductions for New or Used Equipment Purchases

As a business owner, you know how important it is to stay competitive and make smart investments in your business. The Canadian government's introduction of Bill C-19, businesses impacted by the pandemic can save money and improve their operations through tax relief.

Hansler Industries offers a wide selection of new equipment purchases, from forklifts to pallet jacks, that can help you take advantage of this opportunity. But with the year coming to an end, it's important to act now to ensure that you don't miss out on the tax deductions available.

Taking the Bill C-19 tax deduction will lead to significant tax savings for companies in 2023. This legislation allows businesses to expend the full price of new or used business equipment in the first year they’re purchased. For 2023, the maximum deduction is $1,500,000, meaning a business can write off the full cost of up to $1.5 million worth of acquiring equipment that is purchased or financed.

Let's say, for example, your company purchases a new forklift for $30,000 outright in September 2023. Your company can then take a Bill C-19 deduction on the machine for the full amount ($30,000). At a 26% tax rate, that equates to a net tax savings of $7,800. That $7,800 comes right off the tax bill and stays in your company's bank account.

By acquiring the equipment, your company's 2023 is $7,800 better than it would have been had it not acquired the equipment at all. Plus, you get to use the equipment. This is a great opportunity to increase productivity with newer equipment while having the additional equity to reinvest in other facets of your business.