Manufacturing and processing equipment in Quebec
A Quebec 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 Quebec: 11.2% on small business income and 26.5% at the general rate.
Manufacturing and processing 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. Installation and commissioning costs are part of the capital cost. Keep the invoices together so the full amount is claimed.
See also: all assets in Quebec · Manufacturing and processing equipment in other provinces
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