Exciting news in the tax world–the Government of BC announced yesterday. A BC PST Rebate for select machinery and equipment. Detailed information is not yet available.
When an incorporated business purchase or lease certain machinery and equipment between September 17, 2020 and September 30, 2021, they may be eligible for a rebate of 100% of BC PST paid. Please note that certain entities are excluded from eligibility, such as crown corps, charities, schools, hospitals, etc.
The machinery and equipment that qualify for the rebate must be:
- found in Schedule II to the federal Income Tax Regulations for CCA classes 8, 10, 12, 16, 43, 43.1, 43.2, 46, 50, 53, 54, and 55,
- obtained substantially (90%+) for the purpose of gaining or producing income, and
- not excluded.
Here is a list of the goods that are excluded from the rebate:
- vehicles, with the exception to zero-emissions vehicles;
- goods that will be installed as an improvement to real property;
- goods purchased for resale by a small seller; and
- exclusive products purchased by independent sales contractors.
Businesses will be able to apply for the rebate starting on April 1, 2021. Information about the application process will be provided as it becomes available.
Some big ticket items to consider:
- Construction equipment
- Computer hardware/software
- EV charging stations
- Electric, hydrogen vehicles, certain hybrid vehicles
More details can be found here: