Not many businesses know that in the recent Federal Budget a temporary provision was introduced allowing businesses to write off 100% of the capital cost allowance (CCA) for computer purchases.

What this means is in the first year a business can write off 100% of the cost of the new computer rather than depreciating it over several years. That can result in significant corporate tax savings.

Here is an excerpt from the Federal Government website: Government Capital Cost Allowance for Computers.

Temporary 100-Per-Cent Capital Cost Allowance Rate for Computers

In light of the economic slowdown, Budget 2009 proposes a two-year 100-per-cent CCA rate for computers acquired after January 27, 2009 and before February 1, 2011. This will allow businesses to fully expense their investment in computers in one year. Businesses in all sectors of the economy, including the service sector, will benefit from this initiative, which will contribute to boosting Canada's productivity through the faster adoption of newer technology.