Construction and contractor equipment in Alberta
An Alberta corporation buying excavators, lifts and contractor equipment on or after September 15, 2026 can deduct 100% of the cost in the year the property is available for use. Combined tax rates in Alberta: 11.0% on small business income and 23.0% at the general rate.
Does Alberta follow the federal rule? Expected to follow Alberta runs its own corporate tax and has not commented on this measure, but its past practice is to match federal capital cost allowance changes. Details and sources
Construction and contractor equipment in Alberta
Worked examples
| Purchase | Old year-one deduction | New year-one deduction | Tax reduction (small business) | Tax reduction (general rate) | NPV benefit (general) |
|---|---|---|---|---|---|
| $25,000 | $3,750 | $25,000 | $2,750 | $5,750 | $860 |
| $100,000 | $15,000 | $100,000 | $11,000 | $23,000 | $3,441 |
| $250,000 | $37,500 | $250,000 | $27,500 | $57,500 | $8,603 |
Alberta administers its own corporate income tax and is not part of the federal collection agreement, so its rates are not in the Canada Revenue Agency table. Alberta's 8% general rate is the lowest in Canada. Confirm current rates before relying on these figures. Rent-to-own arrangements only produce a CCA claim once you own the asset. A straight lease is a current expense with no write-off of the purchase price.
What sales tax does to your deductible cost in Alberta
Alberta charges GST 5%, no provincial sales tax on most equipment purchases. A business registered for GST/HST recovers that tax through input tax credits, so it is not part of the capital cost and not part of what you deduct. Enter the price before tax in the calculator. Alberta levies no provincial sales tax, so there is no non-recoverable tax to add to the capital cost.
If you are not registered for GST/HST, the tax you cannot recover does form part of the capital cost. Most businesses buying equipment at this level are registered.
See also: all assets in Alberta · Construction and contractor equipment in other provinces
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