The Mega Deduction for manufacturing and processing
Manufacturers buy the largest equipment tickets and are usually taxed at the general rate, which makes each dollar of deferral worth more.
Three things to know
- CNC, robotics and processing lines qualify in full
- Eligible M&P buildings have a separate Budget 2025 rule
- Automation software and control systems qualify
A typical $400,000 purchase
What manufacturing and processing typically buy
| Asset | Class | Status | Old year-one deduction on $400,000 | Tax reduction (SB / general, Ontario) |
|---|---|---|---|---|
| Manufacturing and processing equipment | 43 / 53 | Eligible | $60,000 | $44,800 / $106,000 |
| Construction and contractor equipment | 38 / 8 | Eligible | $60,000 | $44,800 / $106,000 |
| Computer equipment | 50 | Eligible | $110,000 | $44,800 / $106,000 |
| Clean energy and energy conservation equipment | 43.1 / 43.2 | Eligible | $60,000 | $44,800 / $106,000 |
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.