Corporate Taxation and U.S. Federal Tax Rates

Capital Cost Allowance Rates – 2019

 

This document is up to date as of August 1, 2019 and reflects the status of legislation, including proposed amendments at this date.

Description of Property Rate1 Class
Buildings acquired since 1988, including component parts 4% 1
Buildings acquired on or after March 19, 20072 and used 90% + for manufacturing and processing (separate class) 10%3
Buildings acquired on or after March 19, 20072 and used 90%+ for non-residential purposes (separate class) 6%3
Fences, greenhouses, wood buildings (farming and fishing) 10% 6
Assets not included in any other class such as accessories, equipment, furniture, photocopiers, telephones, tools costing more than $500 and outdoor advertising panels 20% 8
Automobiles, panel trucks, trucks, tractors, trailers4 30% 10
Passenger vehicles, the cost of which is equal to or exceeds prescribed amounts ($30,000 + tax – see Section V)4 30% 10.1
Application software, small tools, cutlery, linen, uniforms, moulds, medical instruments costing less than $500 and rented videotapes 100% 12
Leasehold improvements Lease term5 13
Taxis, automobiles acquired for short-term leasing and coin-operated video games4 40% 16
Trucks and tractors designed for hauling freight4 40%6 16
Parking areas or similar surface construction 8% 17
Electric charging stations 100%7 43.1 / 43.2
Data network infrastructure equipment 30% 46
Computer equipment, systems software and related equipment 55%8 50
Manufacturing or processing equipment acquired after 2015 and before 2026 100%9 53

1 Rates are declining balance unless otherwise indicated. Property acquired after November 20, 2018 generally qualifies for an enhanced deduction in the first year of 150% of the deduction normally granted, at the rate applicable to the class. This measure does not apply to property that is fully deductible in the first year.
2 Building must not have been acquired or used by anyone before March 19, 2007.
3 Includes additions and modifications made to a building since March 19, 2007 included in a separate class even though the building was acquired before that date.
4 Eligible new zero-emission vehicles acquired after March 18, 2019 are 100% deductible in the first year for federal and Quebec purposes. Eligible property must be classified under classes 54 or 55, according to its characteristics. At the date of publication, Ontario and New Brunswick had not announced whether they would harmonize with this measure.
5 Straight-line capital cost allowance over the lease term (including the first renewal period), for a minimum of 5 years and a maximum of 40 years.
6 60% rate in Quebec for new vehicles.
7 For property acquired after November 20, 2018 (30% or 50% before this date, according to the class). Additional deduction in Quebec equal to 30% of the capital cost allowance claimed in the previous year for new property acquired after December 3, 2018.
8 In Quebec, 100% rate for property acquired after December 3, 2018 and additional 30% deduction for capital cost allowance claimed in the previous year for new property acquired after December 3, 2018.
9 For property acquired after November 20, 2018 (50% before this date). Additional deduction in Quebec equal to 30% of the capital cost allowance claimed in the previous year for new property acquired after December 3, 2018.
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