Canada’s Department of Finance announced it will propose a temporary enhanced first-year capital cost allowance (CCA) rate of 100% for qualifying zero-emission off-road automotive vehicles and equipment, acquired on or after 2 March 2020.
The enhanced CCA rate would apply to qualifying vehicles and equipment that do not currently benefit from the enhanced CCA for zero-emission motor vehicles (as introduced in the 2019 federal budget).
The 100% CCA rate would gradually be phased out for vehicles and equipment that become available for use after 2023, until it eventually expires in 2028. Taxpayers would only be able to claim the enhanced allowance for the tax year in which a qualifying vehicle is first available for use.
Read a March 2020 report prepared by the KPMG member firm in Canada
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor 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 on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.