Policy status:In Force
Date Effective:2007
Policy Type:Economic Instruments>Fiscal/financial incentives>Tax relief
Policy Target:Commercial/Industrial Equipment, Industry

As per Canada's Income Tax Regulations, certain capital costs of systems that produce energy by using renewable energy sources or fuels from waste, or conserve energy by using fuel more efficiently are eligible for accelerated capital cost allowance.

Under Class 43.1, eligible equipment may be written-off at 30 percent per year on a declining balance basis. In general, equipment that is eligible for Class 43.1 but is acquired after February 22, 2005 and before year 2020 may be written-off at 50 percent per year on a declining balance basis under Class 43.2.

Technical guides include detailed information about eligible expenses associated with common technologies, information about forms required and background information about requirements. Guides and additional information can be downloaded from the website below. Questions about eligibility can be directed to Natural Resources Canada (NRCan), the technical authority for Classes 43.1 and 43.2.

Last modified: Thu, 21 Jan 2016 16:35:52 CET