Federal government to allow full depreciation of manufacturing equipment in year one
By Patrick Flannery
In its fall economic statement, the federal government has announced its intention to allow businesses to write off the entire cost of machinery used for manufacturing and processing the same year it is put into use. This is up from the 25-per cent writeoff allowed in the first year presently.
In the announcement, the Ministry of Finance points directly to a drive to improve the competitiveness of Canadian manufacturers in light of American tax and tariff moves.
Specifics of the machinery eligible for the new rules are not given, but the measures are broad and would likely apply to window and door fabrication equipment.
“This is great news for our members and all manufacturers in Canada,” said Jennifer Small of Screenco, Fenestration Canada president. “This allows companies to reinvest in their operations and have significant immediate tax savings as a result.”