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

Updated: Jan 1, 2024

2023 Bill C19

Attention business owners! Are you looking for a way to save money and boost your efficiency? 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 expense the full price of new or used business equipment in the first year they’re purchased, with a maximum deduction of $1,500,000.

Let's say, for example, that your company finances a new forklift for $50,000, with payments of $1,500 per month. That would equate to a portion of payments made within the year. 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 net tax savings minus the payments made equals a significant benefit.

By acquiring the equipment, your company’s expenditures are 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 within the 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.