Accelerated Capital Cost Allowance

Name of policy Accelerated Capital Cost Allowance
Jurisdiction Country
Supranational region
Country Canada
Region North America

Subnational region or state
City or local
Policy objective
  • Mitigation
Type of policy instrument
  • Economic Instruments
    • Fiscal or financial incentives
      • Tax relief
Sector name
  • General
    Policy description Before 2007, the federal Income Tax Act provides an accelerated capital cost allowance (30% capital cost allowance rate computed on a declining balance basis) for certain types of renewable energy equipment.

    The accelerated Capital Cost Allowance (CCA), under Class 43.1 and 43.2 of Schedule II to the Income Tax Regulations, allows investors an accelerated write-off of certain equipments used to produce energy in a more efficient way or to produce energy from alternative renewable sources.

    A 50% accelerated CCA is provided under Class 43.2 for eligible equipment that generated either (1) heat for use in an industrial process or (2) electricity by using a renewable energy source (e.g. wind, solar, small hydro), waste fuel (e.g. landfill gas, manure, wood waste) or making efficient use of fossil fuels (e.g. high efficiency cogeneration systems).

    Policy type
    • Renewables1
    Policy stringency
    Implementation state Ended
    Date of decision 1994
    Start date of implementation
    End date of implementation 2013
    High impact No
    Impact indicator

    Source or references,&return=PG5hdiBpZD0iYnJlYWRjcnVtYiI-PGEgaHJlZj0iLyI-SG9tZTwvYT4gJnJhcXVvOyA8YSBocmVmPSIvcG9saWNpZXNhbmRtZWFzdXJlcy8iPlBvbGljaWVzIGFuZCBNZWFzdXJlczwvYT4gJnJhcXVvOyA8YSBocmVmPSIvcG9saWNpZXNhbmRtZWFzdXJlcy9yZW5ld2FibGVlbmVyZ3kvIj5SZW5ld2FibGUgRW5lcmd5PC9hPjwvbmF2Pg,,
    Supports policies
    Is supported by policies
    Comments (background and assessment)
    Status Final

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