Immediate expensing for specified clean energy generation and energy efficient equipment

Country / jurisdiction: Canada · Year: 2025 · Status: In force · Level: National · Type: Voluntary

Specified clean energy generation and energy conservation equipment under capital cost allowance Class 43.1 (and Class 43.2 for property acquired before 2025) qualified for an enhanced first-year allowance that provided a 100-per-cent deduction for property that became available for use before 2024.

This immediate expensing measure was phasing out for property that became available for use after 2023 and before 2028. The 2024 Fall Economic Statement proposed to fully re-instate immediate expensing for clean energy generation and energy conservation equipment (capital cost allowance Class 43.1) acquired on or after January 1, 2025, and that becomes available for use before 2030, with a four-year phase out for property that becomes available for use after 2029 and before 2034.

This measure was reconfirmed in Budget 2025 and introduced in the Budget 2025 Implementation Act, No. 1. (Bill C-15). The Budget 2025 Implementation Act, No. 1. recieved royal assent on March 26, 2026.

Official source: https://www.canada.ca/content/dam/fin/publications/taxexp-depfisc/2026/taxexp-depfisc-26-eng.pdf