Adjustment to the Capital Cost Allowance System

The Capital Cost Allowance (CCA) system was adjusted to encourage investment in energy efficient equipment. Proposed changes include: an increase in the CCA rate for certain railway assets from 10 to 15 per cent; an extension of the separate class election to include manufacturing and processing equipment; and an increase in the CCA rates from 4 per cent to 8 per cent for electrical generating equipment (other than buildings and other structures), and for production and distribution equipment (other than buildings and other structures) of water or heat.

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