Addition of a new Vehicle Category - 56
The government
proposes that the vehicle or equipment should be powered by an
engine (i.e., self-propelled) and either fully electric or
powered by hydrogen,
Class
56 would
apply to qualifying zero-emission motor vehicles and equipment
acquired after March 1, 2020, that are ready for service before
2028. This category included automotive equipment that is not
designed to operate on public roads or on streets such as aircraft,
boats, trolleybuses, and zer0-emission railway locomotives.
A taxpayer would
be entitled to claim the enhanced deduction in respect of a
qualifying zero-emission vehicle or equipment only
for the taxation year in which the vehicle will be ready for
service for the first time.
Enhanced
deduction rate improved for the first year:
*Announcement
day -2003 100 % enhanced
deduction
*2024 -
2025
75 % enhanced deduction
*2026 -
2027
55 % enhanced deduction
*2028 and
thereafter
30 %
CCA will apply
to any balance remaining in Class 56 using the
declining balance method, at a rate of 30 %.
For more
information on Class 56, see the following link:
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/claiming-capital-cost-allowance/classes-depreciable-property.html#cls56
We suggest that
you consult the following link, to know the different class as well
as the different rates by category.
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002/t4002-10.html
You could
consult guide T4402 at the following link:
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002.html
ID: 20220104092858DE.xml
Webpage: KPA310-20220104092858DE.htm