Construction and contractor equipment in Northwest Territories
A Northwest Territories 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 Northwest Territories: 11.0% on small business income and 26.5% at the general rate.
Does Northwest Territories follow the federal rule? Follows the federal rule Northwest Territories calculates corporate tax on the federal tax base, so the federal deduction would flow through if it is enacted. Details and sources
Construction and contractor equipment in Northwest Territories
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 | $6,625 | $991 |
| $100,000 | $15,000 | $100,000 | $11,000 | $26,500 | $3,965 |
| $250,000 | $37,500 | $250,000 | $27,500 | $66,250 | $9,912 |
The NWT general rate is 11.5%. 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 Northwest Territories
Northwest Territories charges GST 5%, no territorial 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.
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 Northwest Territories · Construction and contractor equipment in other provinces
Free: the Year-End Purchase Checklist (PDF)
One page. What qualifies, what does not, the 'available for use' trap, and the seven questions to ask your accountant before you buy. No spam, unsubscribe any time.
The Mega Deduction Year-End Playbook
Everything you need to walk into your accountant's office with a plan instead of a question. Built for owner-managed Canadian businesses that expect a profitable 2026.
- Excel purchase planner with every province's rates and every CCA class pre-loaded. Model up to 12 purchases, see the year-one deduction, tax reduction and 10-year comparison for each.
- The 46-page Playbook (PDF): eligibility by asset class, the exclusions, 'available for use' rules, financing vs. leasing, recapture risk, CCPC vs. sole proprietor, and worked examples for 12 industries.
- Accountant brief template (Word): a one-page memo you fill in and send so your accountant can confirm the plan in one email instead of a meeting.
- 30-day action plan for purchases that must be delivered and installed before your fiscal year-end.
$97$47 CAD one-time, instant download
Secure checkout by Stripe. Files delivered immediately after payment. Not tax advice; every plan should be confirmed by your accountant.