On March 19th of 2019 the Government of Canada is set to announce the new budget for the federal government.
While what is in that document will have a major impact on many people, I would like to remind people about a tax write off which was put on the books during the fiscal update last fall and has gone relatively unnoticed.
The changes allow for businesses to write off 100 per cent of the costs of certain kinds of renewable energy equipment which were purchased after Nov. 20, 2018 and will be going into service before 2028. The write offs will also be redeemable in one year as opposed to being stretched out over a longer period of time.
These changes could make solar energy systems attractive to certain people.
I could imagine that people who are interested in these tax tools.
Being able to save some money, come tax time, can be helpful for businesses looking to install a system as it could help shorten the number of years it needs to be financed.
“So instead of having a pay back of maybe nine to ten years, well maybe you’re shaving a couple years off your pay back and the system pays for itself in year seven or eight,” he said.
I think there’s some real advantage to looking at these projects right now.