Federal program
Accelerated Capital Cost Allowance: Classes 43.1 and 43.2 (and CRCE)
Natural Resources Canada / Canada Revenue Agency
What it pays
Class 43.1: eligible equipment written off at 30 percent per year on a declining balance basis. Class 43.2: 50 percent per year, for equipment acquired after February 22, 2005 and before 2025. Enhanced first-year allowance: a 100 percent deduction, in phase-out for property available for use after 2023.
Deadline: none stated on the source page
Accelerated depreciation for equipment that generates energy from renewables or waste fuels, or that conserves energy by using fuel more efficiently; the energy-conservation limb being the one that matters for factory retrofits. Canadian Renewable and Conservation Expense lets certain development and start-up costs be deducted in full in the year incurred.
Who qualifies
Businesses acquiring qualifying Class 43.1 or 43.2 equipment for use in Canada; CRCE requires a project in which at least 50% of capital costs would be Class 43.1 or 43.2 equipment.
Summarized from the official page. This is not advice; the provider decides.
Status note, as recorded
IMPORTANT DATE TRAP: Class 43.2 (the 50% rate) applies only to equipment "acquired after February 22, 2005, and before 2025", so for a 2026 purchase the live class is 43.1 at 30 percent. Quoting 50% today would be wrong. The enhanced first-year allowance covers property acquired after November 20, 2018 and available for use before 2028 and is already in phase-out. Not an application-based program, claimed on the tax return, so no intake risk. NRCan's own page notes the overlap with the Clean Technology ITC. The Technical Guide linked from the page is the 2019 edition; the "Class 43.1, Class 43.2 and CRCE News" section carries anything later. As with OMMITC, whether metering or monitoring hardware qualifies is your accountant's call, not ours.
Program details change. Always confirm with the provider before budgeting. If this page and the official page disagree, the official page is right, and we would like to know, at info@quantifyenv.com.
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