Comments on Funding:
The incentive is:
- an accelerated CA rate of 30% calculated on a declining-balance basis under class 43.1 for specified clean energy equipment acquired after February 21, 1994;
- an accelerated CCA rate of 50% under class 43.2 for equipment acquired after February 22, 2005, and before 2025, that would otherwise be eligible for class 43.1 (subject to certain limited exceptions);
Many of these assets would otherwise depreciate at lower rates of 4, 8 or 20%.
Businesses who acquired property after November 20, 2018, and the property becomes available for use before 2028, will be eligible for an enhanced first-year allowance. The enhanced allowance will initially provide a 100% deduction, with a phase-out for property that becomes available for use after 2023. Full Expensing effectively suspends the half-year rule for property eligible for this measure.
Applicants must be businesses that have specified clean energy equipment under classes 43.1 and 43.2 after February 21, 1994 or that will acquire it before 2025.
Eligible clean energy equipment: