Capital Cost Allowance Changes
These changes have been made to the CCA rates for acquisitions on or after March 19, 2007:
- CRA has indicated that the new Class 50 will be used to designate computers and related equipment at a new increased rate of 55%.
- The rate for Class 1 buildings used for manufacturing or processing has been increased from 4% to 10%.
- The rate for other non-residential Class 1 buildings that are used in a business has been increased from 4% to 6%.
Note that the rate on residential Class 1 buildings remains at 4%.
A new straight-line rate of 50% included in Class 29, has been introduced for eligible machinery and equipment purchased before 2009 by businesses engaged in manufacturing and processing machinery and equipment. The half-year rule will apply to these purchases, meaning that a rate of only 25% will be allowed in the first year.
