Manufacturing and processing equipment in Nova Scotia
A Nova Scotia corporation buying machinery and processing lines 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 Nova Scotia: 10.5% on small business income and 29.0% at the general rate.
Does Nova Scotia follow the federal rule? Follows the federal rule Nova Scotia calculates corporate tax on the federal tax base, so the federal deduction would flow through if it is enacted. Details and sources
Manufacturing and processing equipment in Nova Scotia
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 | $2,625 | $7,250 | $1,085 |
| $100,000 | $15,000 | $100,000 | $10,500 | $29,000 | $4,339 |
| $250,000 | $37,500 | $250,000 | $26,250 | $72,500 | $10,847 |
Nova Scotia has a $700,000 small business limit and a 1.5% small business rate, both set on April 1, 2025. Installation and commissioning costs are part of the capital cost. Keep the invoices together so the full amount is claimed.
What sales tax does to your deductible cost in Nova Scotia
Nova Scotia charges HST 14% 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 Nova Scotia · Manufacturing and processing equipment in other provinces
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