BS PST Rebate For Machinery

BC PST Rebate: Select Machinery and Equipment

Updated July 2022

In efforts to assist in the recovery from the impacts of COVID-19, the BC Ministry of Finance in their Economic Recovery Plan announced that effective September 17, 2020, incorporated businesses will be eligible for a PST rebate on select Machinery and Equipment.

Who Is Eligible For The Rebate?

Incorporated businesses will be eligible for the BC PST Rebate on select Machinery and Equipment as further discussed below. The rebate will not be available to certain entities including, provincial and federal Crown corporations, charities and non-profit corporations, schools, hospitals, regional health boards, and agents of the government.

What Is Eligible For The Rebate?

To qualify for the rebate, the machinery and equipment must be:

  • Included in capital cost allowance (“CCA”) classes 8, 10, 12, 16, 43, 43.1, 43.2, 46, 50, 53, 54, and 55 for income tax purposes; and
  • Obtained substantially (more than 90%) for the purpose of gaining or producing income.

Incorporated businesses should be mindful of the income tax classification of their capital assets acquired between September 17, 2020, and September 30, 2021. Details with regards to these CCA classes can be found here:

The following are some assets that will not qualify for the rebate:

  • vehicles, other than zero-emission vehicles;
  • goods purchased to be installed as an improvement to real property;
  • goods purchased for resale by a small seller;
  • exclusive products purchased by independent sales contractors.

How To Apply For The Rebate

Incorporated businesses may make up to two PST rebate applications. The first application can be made between April 1, 2021, and September 30, 2021. The second application can be made starting October 1, 2021. The last day applications will be accepted is March 31, 2022.

Update July 2022: Please be advised that the deadline to apply for the BC PST Rebate on Selected Machinery and Equipment is September 30, 2022. Although initial correspondence from the Ministry of Finance indicated a deadline of March 31, 2022, this was extended by six months.

Disclaimer: Avisar Chartered Professional Accountant’s blog deals with a number of complex issues in a concise manner; it is recommended that accounting, legal or other appropriate professional advice should be sought before acting upon any of the information contained therein.

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