Accelerated Capital Cost Allowance

If you work in the renewable energy sector or are considering renewable energy expansion or investment, have you looked into the Accelerated Capital Cost Allowance? 

Accelerated Capital Cost allowance:  In November of 2018 the federal government passed an amendment to Schedule II of the Canadian tax code which would allow for a 100% write off in the first year of clean energy projects in Classes 43.1 and 43.2.  Clean energy generation and energy conservation technologies are a key component of the Government’s approach to promoting sustainable economic growth and can contribute to a reduction in emissions of greenhouse gases and air pollutants. One way to promote these technologies is to allow a business to reduce its taxable income in the early years of an asset’s operation by claiming CCA at a high rate. This accelerated CCA is an exception to the general practice of setting CCA rates based on the useful life of an asset.  It applies for projects installed prior to year-end 2023.