Manufacturing and processing equipment: eligible
Machinery used primarily to manufacture or process goods for sale went into Class 53 (50%) until the end of 2025 and now generally lands in Class 43 (30%). Either way, the Mega Deduction turns a multi-year write-off into a single-year deduction.
Examples of machinery and processing lines
- CNC machines, presses and lathes
- packaging and bottling lines
- industrial ovens, mixers and food-processing equipment
- robotic cells and automated inspection
Planning tip
Installation and commissioning costs are part of the capital cost. Keep the invoices together so the full amount is claimed.
CCA Class 43 / 53 · regular rate 30% declining balance · half-year rule normally applies in year one.
Calculate the deduction on machinery and processing lines
Worked examples (Ontario)
| Purchase | Old year-one deduction | New year-one deduction | Tax reduction, small business rate | Tax reduction, general rate |
|---|---|---|---|---|
| $25,000 | $3,750 | $25,000 | $2,800 | $6,625 |
| $100,000 | $15,000 | $100,000 | $11,200 | $26,500 |
| $250,000 | $37,500 | $250,000 | $28,000 | $66,250 |
Manufacturing and processing equipment by province
- Manufacturing and processing equipment in Alberta
- Manufacturing and processing equipment in British Columbia
- Manufacturing and processing equipment in Saskatchewan
- Manufacturing and processing equipment in Manitoba
- Manufacturing and processing equipment in Ontario
- Manufacturing and processing equipment in Quebec
- Manufacturing and processing equipment in New Brunswick
- Manufacturing and processing equipment in Nova Scotia
- Manufacturing and processing equipment in Prince Edward Island
- Manufacturing and processing equipment in Newfoundland and Labrador
- Manufacturing and processing equipment in Yukon
- Manufacturing and processing equipment in Northwest Territories
- Manufacturing and processing equipment in Nunavut
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 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.
- 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.