Capital cost allowance
Class 43.1 is current; Class 43.2 is historical for post-2024 acquisitions.
Direct answer
CRA lists Class 43.1 at 30%. Class 43.2 is 50% but requires acquisition before 2025. Current first-year treatment can accelerate qualifying Class 43.1 deductions, subject to enacted conditions, available-for-use timing, and professional confirmation.
· Economics guide
Code-native diagram
CCA basis decision
A basis path separates class selection, available-for-use timing, ITC treatment, and the resulting UCC.
| Step | Evidence question |
|---|---|
| 1 | Qualifying property |
| 2 | Class and timing |
| 3 | ITC treatment choice |
| 4 | UCC schedule |
Conceptual geometry only. The official source basis and verification date are listed in the evidence rail on this page.
The class rate and acquisition window are separate
Class 43.1 has a 30% declining-balance rate when property meets the class conditions. Class 43.2 has a 50% rate, but CRA limits that class to property acquired before 2025.
- OfficialCRA lists Class 43.1 at 30% and Class 43.2 at 50%, with Class 43.2 limited to property acquired before 2025.Verified 2026-07-17
| Class | Published rate | 2026 acquisition orientation |
|---|---|---|
| 43.1 | 30% | Potentially current when the property qualifies |
| 43.2 | 50% | Not open for property acquired after 2024 |
Assented legislation restored accelerated treatment
Bill C-15 received Royal Assent on 26 March 2026. The enacted framework and current CRA guidance can permit a 100% first-year deduction for qualifying Class 43.1 property acquired on or after 1 January 2025 and available for use before 2030, subject to the detailed conditions and restrictions.
Enerwav exposes the acquisition and available-for-use dates rather than assuming the first-year result.
- OfficialBill C-15 received Royal Assent on 26 March 2026.Verified 2026-07-17
Choose one CRA-described ITC treatment
CRA describes two treatments for a claimed Clean Technology ITC. The claimant can reduce UCC by the credit, or retain UCC and include the credit in income.
A combined tax shield is suppressed until the user states eligible basis, treatment, year, class, tax rate, and eligibility.
Keep the property schedule auditable
Retain asset descriptions, invoices, acquisition dates, available-for-use evidence, class analysis, assistance, ITC elections, UCC continuity, dispositions, and professional advice.
The Explorer is an advisory screen. It does not prepare a tax return or determine the legal class.
Document why the property belongs in a class
Class 43.1 and Class 43.2 are tax classes with detailed property conditions. A technology label or project marketing description does not establish the class. The asset schedule should identify the property, acquisition date, available-for-use date, use, ownership, location, supporting technical information, and the provision relied upon.
CRA publishes a 30% rate for Class 43.1 and a 50% rate for Class 43.2. The higher Class 43.2 rate remains relevant to eligible historical property acquired before 2025, but it should not be applied to a new 2026 acquisition. The current screen treats Class 43.1 as the possible path when the property qualifies.
Separate the class rate from first-year treatment
The declining-balance class rate and the first-year allowance are different parts of the calculation. The assented 2026 law reinstated accelerated treatment for qualifying property, while CRA guidance describes timing and conditions. The adviser must confirm the property, acquisition, available-for-use date, excluded property, short taxation year, assistance, and other restrictions.
A statement that property is in Class 43.1 does not by itself prove a full first-year deduction. Enerwav therefore presents the current orientation and keeps the tax shield unavailable until the user declares the basis, tax rate, treatment, and timing. The result remains advisory rather than a return calculation.
Keep the ITC treatment explicit
CRA describes two treatments for a claimed Clean Technology ITC. The claimant may reduce the property's UCC by the credit, or retain the UCC and include the ITC in income. Those paths change the UCC schedule and the timing of taxable income or deductions.
The model must not claim the full ITC, preserve the unreduced UCC, and omit the income inclusion. The treatment choice should be visible beside the calculation and consistent with the tax work. Assistance can also affect capital cost and should be reconciled before the UCC schedule is built.
Maintain UCC continuity after the first year
A useful schedule starts with the opening UCC, adds qualifying acquisitions, applies assistance and the selected ITC treatment, records dispositions, applies the available first-year rules, calculates CCA claimed, and carries the closing UCC into the next taxation year. Each line should retain the asset and source records that support it.
Later additions, transfers, changes in use, dispositions, recapture, terminal loss, and tax-law updates can change the schedule. The economic model should not freeze a first-year tax benefit as though it were a permanent annual cash flow. It should use dated tax cash flows when discounted payback is calculated.
Do not combine tax benefits without the missing inputs
A combined ITC and CCA example needs the confirmed claimant, qualifying property, capital cost, assistance, ITC rate, labour election, available-for-use date, CCA class, first-year treatment, UCC or income choice, taxation year, tax rate, and cash timing. Removing any one of those inputs can materially change the result.
Enerwav keeps the example suppressed until those inputs are declared. The page is intended to help an owner prepare a complete question set for tax counsel and to prevent Class 43.2 from being used for a post-2024 acquisition. It is not tax advice or a filing worksheet.
Retain records for class, timing, and disposition
Keep invoices, asset descriptions, technical specifications, contracts, assistance records, acquisition and available-for-use evidence, class analysis, tax elections, CCA schedules, dispositions, transfers, and professional advice. The record should let a later reviewer trace each UCC movement to an asset event.
If the tax treatment changes after filing, update the dated cash-flow model rather than changing an earlier result without explanation. A current economic screen should identify whether the tax amount is estimated, filed, assessed, reassessed, or received.