What's new for small businesses and self-employed
On this page, you will find information on the following:
New capital cost allowance (CCA) classes: Class 54 (30%) and Class 55 (40%) for business investment in zero-emission vehicles
Two new capital cost allowance (CCA) classes have been created for zero-emission vehicles acquired after March 18, 2019, Class 54 and Class 55.
Class 54 has a rate of 30% and includes zero-emission vehicles that would normally be included in Class 10 or 10.1.
Class 55 has a rate of 40% and includes zero-emission vehicles that would normally be included in Class 16.
A zero-emission vehicle has to be acquired, and become available for use, after March 18, 2019, and before 2028 to be eligible for the first-year enhanced CCA deduction. These new classes will have an enhanced first-year CCA deduction of 100% for zero-emission vehicles that become available for use before 2024. CCA will still be calculated on a declining balance basis, and a phase out will begin for property that becomes available for use after 2023.
For more information, see "Classes of depreciable property" in this guide.
Under proposed legislation, a taxpayer can elect that the deemed disposition that normally arises on a change in use of part of a property not apply in respect of changes in the use of property that occur on or after March 19, 2019. As a result, any accrued capital gain on the property can be deferred until the property is disposed of in the future. For more information, see guide T4037, Capital gains.
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