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

Updated: May 9, 2023

2023 Bill C19

Attention business owners! Are you looking for a way to save money and boost your efficiency in 2023? The Canadian government has introduced the Bill C-19 tax deduction for new or used equipment purchases. This is a fantastic opportunity to save on your taxes, and our team is here to help you take advantage of it.

Bill C-19 offers tax relief to businesses impacted by the pandemic. You may be eligible for a full tax deduction for new or used equipment purchases made by businesses, including material handling machines from Leavitt Machinery.

This legislation allows companies to expend the full price of new or used business equipment in the first year they’re purchased, with a maximum deduction of $1,500,000 for 2023.

Let's say, for example, that your company finances a new forklift for $50,000 in September 2023, with payments of $1,500 per month beginning in October. That would equate to three months of payments made in 2023 for a total of $4,500. Your company can then declare a Bill C-19 deduction on the machine for the full amount ($50,000). At a 26% tax rate, that equates to a net tax savings of $13,000. That $13,000 comes right off your annual tax bill and stays in your company's bank account. The $13,000 in net tax savings minus the $4,500 paid out equals $8,500.

By acquiring the equipment, your company's 2023 expenditures are $8,500 better than it would have been had it not acquired the equipment at all. Plus, you get to use the equipment to make your business run safely and more efficiently. That's a win-win!

The equipment must be purchased and put into service during the 2023 calendar year. This means that it's important to act fast if you want to take advantage of this opportunity.

Contact Leavitt Machinery today to learn more about our extensive selection of available new and used equipment and how we can help you maximize your tax savings. Our experienced team can help you find the perfect machines for your business and ensure they are delivered within the required time frame.

Please note that machine delivery times can vary depending on stock volumes, so don't wait too long. You have until midnight on December 31 to acquire and put your equipment into service. Don't miss out on this great opportunity to save money and invest in your business.

At Leavitt Machinery, we offer a wide range of material handling machines, from forklifts to aerial lifts, that can help your business become more productive and efficient.

Contact us today to learn more about our selection of material handling machines and how we can help you take advantage of the Bill C-19 tax deductions.