Blog: Quebec Accelerated Capital Cost Allowance (“CCA”) Rate for Computer Hardware and Manufacturing & Processing (“M&P”) Equipment Purchases

August 22nd, 2017

The CCA system provides for a declining-balance CCA rate of 50% (Class 50) on computer hardware and 55% (Class 53) on M&P equipment, both subject to the ½-year rule.

 

 

 

 

 

In his budget released on March 28, 2017, Quebec Minister of Finance and the Economy Carlos Leitão introduced an additional deduction available on such equipment purchased from March 29, 2017 through April 20, 2019, on the conditions that the equipment is new (not used), for use mainly in Quebec for a period of at least 730 days, and is put to use within a reasonable time of its acquisition.  Should these conditions be met, the business will be entitled, for Quebec purposes only, to an additional deduction of 35% of the otherwise allowable CCA deduction for the year, and this, for the year of acquisition and the following year only.

Please consult your Crowe BGK advisor if you have any questions or need assistance in determining whether your business is eligible for this special Quebec treatment.

 

About the Author:

Sam Lackman, CPA, CA, is a Senior Tax Manager at Crowe BGK.

Connect with him: s.lackman@crowebgk.com

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