PwC Federal Budget Instant Reaction: Possible boost of Canada's productivity through faster adoption of newer technology; temporary 100% CCA rate for computer hardware and systems software

    OTTAWA, Jan. 27 /CNW/ - PricewaterhouseCoopers (PwC) Canada tax
specialists commented today:
    The capital cost allowance (CCA) system determines how much of the cost
of a capital asset a business may deduct each year for tax purposes. Budget
2009 proposes a temporary 100% CCA rate for computer hardware and systems
software acquired after January 27, 2009 and before February 1, 2011.
    In addition, the rule that restricts CCA deductions to one-half of the
CCA write-off otherwise available in the first year will not apply to these
computers. This temporary measure will allow taxpayers to fully expense their
investment in computers in one year. It is estimated that this measure will
cost $340 million in 2009-10 and $355 million in 2010-11.
    To compete, Canadians must focus on high value, business centric
solutions and use of agile development techniques. This Budget measure could
assist Canada's productivity through the faster adoption of newer technology.
Businesses in all sectors of the economy, including the service sector, could
benefit from this incentive.
    A PwC Budget Flash with additional Budget highlights will be issued later
today followed by a detailed Budget Memo. For more information and detailed
commentary on the Budget please contact, Carolyn Forest,, 416-814-5730 or visit

    PricewaterhouseCoopers ( provides industry-focused assurance,
tax and advisory services to build public trust and enhance value for its
clients and their stakeholders. More than 155,000 people in 153 countries
across our network share their thinking, experience and solutions to develop
fresh perspectives and practical advice. In Canada, PricewaterhouseCoopers LLP
( and its related entities have more than 5,200 partners and
staff in offices across the country.
    "PricewaterhouseCoopers" refers to PricewaterhouseCoopers LLP, an Ontario
limited liability partnership, or, as the context requires, the
PricewaterhouseCoopers global network or other member firms of the network,
each of which is a separate and independent legal entity.

For further information:

For further information: Carolyn Forest, PricewaterhouseCoopers LLP,
(416) 814-5730,

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