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4- Corporate Taxation and U.S. Federal Tax Rates

Table C5 – Capital Cost Allowance 2024

Description of Property Rate1 Class
Buildings, including component parts 4% 1
Purpose-built residential rental constructed between April 16, 2024 and December 31, 2030 2 10%
Buildings used 90% + for manufacturing and processing (separate class)3 10%
Buildings acquired on or after March 19, 2007 and used 90% + for non residential purposes (separate class)3 6%
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
($37,000 + tax – see Section V)4		 30% 10.1
Application software, small tools, cutlery, linen, uniforms, moulds, medical instruments costing less than $500 and rented videotape 100% 12
Leasehold improvements Lease term5 13
Taxis, automobiles acquired for short-term leasing and coin-operated video game4 40% 16
Trucks and tractors designed for hauling freight4 40%6 16
Parking areas or similar surface construction 8% 17
Electric charging stations 75%7 43.1 / 43.28
Data network infrastructure equipment 100%9 46
Computer equipment, system software and related equipment 100%10 50
Manufacturing or processing equipment acquired after 2015 and before 2026 75%7 53
Other zero emission vehicles or automotive equipment11 75%7 56
  1. Rates are declining balance unless otherwise indicated. Property acquired during the year generally qualifies for half of the capital cost allowance. However, this measure is suspended for property acquired after November 20, 2018 and available for use before 2028.
  2. Requires a new building situated in Canada that contains at least four residential units (with private kitchen facilities, bath and living area) or at least ten private rooms or suites, available for use before 2036. The housing units must not be provided to the travelling or vacationing public and must be rented or offered for rent for continuous periods of at least 28 consecutive days. Projects to convert an existing non-residential building into a residential building are eligible, but renovations to existing residential buildings are not.
  3. Includes additions and modifications made to a building included in a separate class even though the building was acquired before March 19, 2007 (date this measure came into effect).
  4. Eligible zero-emission vehicles classified under classes 54 (ceiling $61,000 + tax) or 55, according to their characteristics, are 75% deductible in the first year if they are available for use before 2026 (rate reduced to 55% in 2026 and 2027).
  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 available for use before 2026 (rate reduced to 55% for property available for use in 2026 and 2027).
  8. Eligible property acquired before 2025 is included in Class 43.2 even if becomes available for use after that date. After 2024, all such property will be included in Class 43.1.
  9. For property available for use after April 15, 2024, and before 2027 (30% before April 16, 2024, and after 2027).
  10. For property available for use after April 15, 2024, and before 2027 (55% before April 16, 2024, and after 2027).
  11. Includes automotive equipment acquired after March 1, 2020, other than an automotive vehicle designed or adapted to be used on highways and streets (class 54 and 55 property) that is fully electric or powered by hydrogen or a combination of the two.

4- Corporate Taxation and U.S. Federal Tax Rates

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