Canada extends full expensing for business investments
Canada has made full expensing for machinery, equipment, and patent rights permanent, increasing the rate from about 15% to two-thirds of business capital investment.
Why it matters
Businesses may save more on taxes by deducting a larger portion of capital investments.
What changed
The expensing rate for business capital investments has increased from around 15% to two-thirds.
What it covers
The change applies to machinery, equipment, and patent rights.
Common questions
What is full expensing?
It allows businesses to deduct the full cost of certain capital investments in the year they are made.
When does the change take effect?
The change was announced on September 15th and applies going forward.
Sources
- Full Expensing to Be Made Permanent in Canada By Alex Mengden, Cristina Enache, Tax Foundation · taxfoundation.org
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