B.C. PST Rebate on Select Machinery and Equipment

The Government of British Columbia has introduced a Provincial Sales Tax (“PST”) rebate for select machinery and equipment.  

The rebate is available to most incorporated businesses for PST on purchases of qualifying machinery and equipment made between September 17, 2020 and September 30, 2021.  The rebate is not available to sole proprietors or unincorporated partners of partnerships.  Incorporated partners can claim their proportional share of the rebate.

Qualifying machinery and equipment

The rebate is available for a variety of machinery and equipment that are considered capital assets, and which are included in Capital Cost Allowance (“CCA”) classes 8, 10, 12, 16, 38, 43, 43.1, 43.2, 46, 50, 53, 54, and 55 for income tax purposes.  

PST paid on leased qualifying machinery and equipment may also qualify for the rebate.

However, several exclusions apply, including:

  • Boats and vehicles that are not “zero-emission vehicles”
  • Consumables, disposable items, and real property
  • Improvements to real property (other than affixed machinery)

More information, including examples of machinery and equipment that qualify for the rebate, is available from the B.C. Ministry of Finance website here.

Application periods

The PST rebate application is made separately from regular PST filings and eligible applicants can submit up to 2 applications for the rebate.  The deadline to apply for the rebate is March 31, 2022.

Contact your D&H Group LLP advisor if you have any questions about the new B.C. PST Rebate on Select Machinery and Equipment, or if you would like assistance claiming the rebate.