Canada: Accelerated capital cost allowance (Quebec)

Regulations in Quebec implement several capital cost allowance measures

Regulations in Quebec implement several capital cost allowance measures

Regulations in Quebec implement several capital cost allowance measures.

In general, Quebec's capital cost allowance changes harmonize with federal measures that allow for immediate expensing of the cost of:

  • Manufacturing and processing machinery and equipment (Class 53)
  • Clean energy equipment (Classes 43.1 and 43.2)

The regulations also introduce an accelerated investment incentive for other capital property (all other classes), subject to the capital cost allowance rules.

These changes apply to qualifying property that is acquired after 20 November 2018, and is available for use before 2024, and then gradually phases out for property that becomes available for use after 2023.

  • Quebec also harmonizes with federal measures to expand the property included in accelerated capital cost allowance (Classes 43.1 and 43.2).
  • Quebec also has province-specific capital cost allowance 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), when the property is acquired after 3 December 2018, and becomes available for use before 2024, and then phases out when the property becomes available for use after 2023.

Read an April 2021 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.