If you are a business owner considering purchasing computer equipment or software, I would recommend you to do so before January 31, 2011. The current tax rules allow a 100% capital cost allowance for computer hardware, software and data processing equipment with no half year rule applied. This means you get a full deduction for the purchase .

The government brought in this special rule to help businesses remain competitive, but the time is coming to an end. After February 1, 2011, the capital cost allowance claim will be 55% with the half year rule in place, unless the government decides to extend this measure.

Please see this link from the Canada Revenue Agency for more details.

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