Addition of a new Vehicle Category - 56The 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:
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