Just a quick reminder that the CRA allows accelerated depreciation of equipment, machinery and assets used for the construction and development of renewable energy. There are 16 categories included in this accelerated group:
Depending on the year of acquisition, those assets can be depreciated at either 30% or 50%.
The CRA created a technical regulatory body (The Industrial Innovation Group) that determines whether or not your assets qualify for this class. This authority publishes an annual technical interpretation, which is very detailed and well outlined. Every year this manual increases in detail and in number of industry projects that qualify for this accelerated depreciation class.
In addition to accelerated depreciation of machinery, plant and equipment, renewable energy project start-up costs such as feasibility studies and pre-construction development expenses may be treated as Canadian renewable and conservation expenses (CRCE). For most taxpayers, these expenses may be deducted in the year incurred or carried forward for deduction in a future year.