So you’ve been thinking of boosting your productivity by adopting new technology.  The 2009 Federal Budget is providing a stimulus to act. 

Newly acquired computer equipment and software for use in your Canadian business and purchased after January 27, 2009 can be fully expensed in the first year (that’s 100!).

In prior years, the capital cost allowance rate (CCA) was 55% declining-balance and deductions were restricted to one-half of the CCA write-off in the first year.  As a stimulus to assist businesses to increase and accelerate investments in computers, the 2009 Budget allows a full deduction on new investments in computers and system software in the taxation year CCA is first available.  That means your business can fully expense the costs of the investment in year one.

Eligible computer equipment and software must be situated in Canada, and be used in a business carried on in Canada, or for the purposes of earning income for Canadian property.