Budget 2021: Additional clean energy assets eligible for accelerated capital cost allowance

Under Canada’s capital cost allowance (CCA) system, an asset is written off over a period of years, at a prescribed percentage rate per year, based on the useful life of that asset. Acquisitions of qualifying clean energy generation and energy conservation equipment are, however, included in CCA classes 43.1 and 43.2, and are thereby eligible for accelerated CCA treatment.

The Budget measures include a proposal to expand the list of types of assets eligible for that accelerated CCA treatment. Qualifying assets acquired and available for use on or after April 19, 2021 will be included in Classes 43.1 and 43.2.