Goodwill, franchises and licences (Class 14.1) in Alberta
An Alberta corporation buying goodwill, franchise rights and indefinite-life intangibles on or after September 15, 2026 cannot use the Mega Deduction; regular Class 14.1 CCA at 5% still applies. Combined tax rates in Alberta: 11.0% on small business income and 23.0% at the general rate.
Goodwill, franchises and licences (Class 14.1) 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 | $625 | $625 | $69 | $144 | $0 |
| $100,000 | $2,500 | $2,500 | $275 | $575 | $0 |
| $250,000 | $6,250 | $6,250 | $688 | $1,438 | $0 |
Alberta has the lowest general corporate rate in Canada at 8%. When buying a business, the purchase price allocation between equipment (eligible) and goodwill (not eligible) now has a much bigger cash impact. Negotiate it deliberately.
See also: all assets in Alberta · Goodwill, franchises and licences (Class 14.1) in other provinces
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