Construction and contractor equipment in Quebec
A Quebec 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 Quebec: 11.2% on small business income and 26.5% at the general rate.
Construction and contractor equipment in Quebec
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 | $2,800 | $6,625 | $991 |
| $100,000 | $15,000 | $100,000 | $11,200 | $26,500 | $3,965 |
| $250,000 | $37,500 | $250,000 | $28,000 | $66,250 | $9,912 |
Quebec's small business rate falls to 2.2% for taxation years beginning after April 29, 2026. Quebec administers its own corporate tax, so provincial harmonization with the federal measure should be confirmed. 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.
See also: all assets in Quebec · Construction and contractor equipment in other provinces
Free: the Year-End Purchase Checklist (PDF)
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The Mega Deduction Year-End Playbook
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- 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 41-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.
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- 30-day action plan for purchases that must be delivered and installed before your fiscal year-end.
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