Quebec enacted regulations to implement several capital cost allowance (CCA) measures on March 10, 2021. As a result, organizations may need to reflect these changes in their financial statements under International Financial Reporting Standards (IFRS), Accounting Standards for Private Enterprises (ASPE) or U.S. generally accepted accounting principles (U.S. GAAP) as of this date.

Harmonization with federal CCA changes

Quebec's CCA changes include harmonization with federal measures that allow the immediate full expensing of the cost of manufacturing and processing (M&P) machinery and equipment (Class 53), as well as the cost of clean energy equipment (Classes 43.1 and 43.2), and the introduction of an accelerated investment incentive for other capital property (all other classes), subject to the CCA rules. These changes apply to qualifying property that is acquired after November 20, 2018 and becomes available for use before 2024, gradually phasing out for property that becomes available for use after 2023.

Quebec also harmonizes with federal measures to expand the property included in accelerated CCA Classes 43.1 and 43.2.

Quebec announced that it would harmonize with these federal measures in the province's 2018 fall economic update.

Quebec specific CCA measures

Quebec also enacts province-specific CCA measures that allow an immediate full expensing of the cost of certain qualified intellectual property (Classes 14, 14.1 and 44) and general-purpose electronic data processing equipment (Class 50), where the property is acquired after December 3, 2018 and becomes available for use before 2024, subject to a phase-out where the property becomes available for use after 2023. These measures were also announced in the province's 2018 fall economic update.

For more information, contact your KPMG advisor.

Information is current to April 26, 2021. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500