How does the accelerated investment incentive work for CCA on property bought in 2025 or 2026?
Under the accelerated investment incentive, property acquired after 2024 and available for use before 2030 gets 1.5 times its CCA rate in the first year, with no half year rule, so class 8 claims 30% and class 10.1 claims 45%. From 2030 to 2033 the first claim is the plain rate, and from 2034 the half year rule returns.
How much first year CCA does the incentive give?
For reaccelerated investment incentive property that becomes available for use before 2030, Regulation 1100(2) adds half of the year's net addition to the UCC before you apply the rate, so the first claim is 1.5 times the normal rate on the full cost. The half year cut (the 0.5 factor on element C) applies only to property that is not accelerated or reaccelerated investment incentive property. From 2030 to 2033 the added factor drops to nil, so the first claim is the plain rate with no half year cut laws-lois.justice.gc.ca. Property that becomes available for use after 2033 falls outside the definition and goes back under the half year rule
laws-lois.justice.gc.ca.
| Available for use (acquired after 2024) | First year multiple | Class 1 (4%) | Class 8 (20%) | Class 10 and 10.1 (30%) |
|---|---|---|---|---|
| 2025 to 2029 | 1.5 times the rate | 6% | 30% | 45% |
| 2030 to 2033 | The full rate, no half year cut | 4% | 20% | 30% |
| 2034 or later | Half year rule | 2% | 10% | 15% |
| Property that does not qualify, any year | Half year rule | 2% | 10% | 15% |
The class rates come from the CRA's list of depreciable property classes canada.ca. Measured against the half year rule, the incentive triples the first claim to 2029 and doubles it from 2030 to 2033, which is how Finance described it when it proposed the reinstatement
budget.canada.ca.
The 45% for class 10.1 matches the passenger vehicle math on the class 10.1 limit page: a $39,000 car bought in Ontario in 2026 has a capital cost of $44,070 with HST, and 45% of that is a $19,831.50 first claim.
A $100,000 class 8 purchase in 2026 claims $30,000 in year one, not $10,000
Your client, a corporation with a calendar year end, buys new class 8 equipment for $100,000 from an arm's length dealer in March 2026 and starts using it right away. It has no other additions or disposals in the class.
| Year | CCA with the incentive | UCC after | CCA under the half year rule | UCC after |
|---|---|---|---|---|
| 2026 | 20% x ($100,000 + $50,000) = $30,000 | $70,000 | 20% x $50,000 = $10,000 | $90,000 |
| 2027 | 20% x $70,000 = $14,000 | $56,000 | 20% x $90,000 = $18,000 | $72,000 |
| 2028 | 20% x $56,000 = $11,200 | $44,800 | 20% x $72,000 = $14,400 | $57,600 |
| Three year total | $55,200 | $42,400 |
The incentive moves $12,800 of deductions into the first three years. It does not create new deductions: the total CCA over the life of the asset is still $100,000, so later years are smaller and a sale above UCC brings back more recapture. See recapture and terminal loss.
If 2026 is a short taxation year, for example a new corporation with a 200 day first year, Regulation 1100(3) prorates the claim by days over 365: $30,000 x 200 / 365 = $16,438.36 laws-lois.justice.gc.ca. CCA is a maximum, so your client can claim less in a year it doesn't need the deduction.
Which property qualifies, and what knocks it out?
Regulation 1104(4.01) defines reaccelerated investment incentive property as property acquired after 2024 that becomes available for use before 2034, other than property in classes 54 to 56. It must also pass one of two tests: either nobody deducted CCA or a terminal loss on it for a taxation year ending before your client acquired it, or your client did not get it through a rollover or from a person it does not deal with at arm's length who owned it earlier laws-lois.justice.gc.ca.
So used equipment bought from an unrelated dealer qualifies under the second test. Equipment your client buys from its own shareholder or a sister company that already claimed CCA on it fails both tests and goes under the half year rule.
Subsection 1102(20.1) treats arm's length parties as not dealing at arm's length when the principal purpose of a transaction is to make property qualify as accelerated or reaccelerated investment incentive property laws-lois.justice.gc.ca.
Classes 53, 43.1, 54, 55 and 56 get their own larger factors in Regulation 1100(2) that work out to 100% in the first year for property available for use before 2030 (for example 50% x (1 + 1) for class 53, and 30% x (1 + 2 1/3) for classes 43.1 and 54) laws-lois.justice.gc.ca. Those are covered on the immediate expensing page, and the full rate list is on the CCA classes table. A corporation buying new class 43.1 or 43.2 equipment should also check the clean technology ITC, which comes off the capital cost from the year after the property is acquired.
When did the reinstatement become law?
The original incentive covered property acquired after November 20, 2018 and before 2025 that became available for use before 2028 laws-lois.justice.gc.ca. Its factor was 1/2 for property available for use before 2024 and nil from 2024, which is the phase out where the half year rule stayed suspended but the extra 50% disappeared
laws-lois.justice.gc.ca.
| Acquired | Available for use | First year claim |
|---|---|---|
| After November 20, 2018 and before 2025 | Before 2024 | 1.5 times the rate |
| After November 20, 2018 and before 2025 | 2024 to 2027 | The full rate |
| After November 20, 2018 and before 2025 | After 2027 | Half year rule |
| After 2024 | Before 2030 | 1.5 times the rate |
| After 2024 | 2030 to 2033 | The full rate |
| After 2024 | After 2033 | Half year rule |
The 2024 Fall Economic Statement proposed to fully reinstate the incentive for property acquired on or after January 1, 2025 and available for use before 2030, phased out from 2030 and gone for property available for use after 2033 budget.canada.ca. Budget 2025 confirmed the government would proceed with that extension
budget.canada.ca.
It is enacted. The Budget 2025 Implementation Act, No. 1 (S.C. 2026, c. 3) received royal assent on March 26, 2026 laws-lois.justice.gc.ca. It added the reaccelerated definition to Regulation 1104 and the new factor to Regulation 1100(2), both deemed in force January 1, 2025, so 2025 returns can use it
laws-lois.justice.gc.ca.
As of October 2026 the CRA's accelerated investment incentive page, last modified July 21, 2025, still describes only the original version and its 2024 to 2027 phase out, so don't rely on it for property acquired after 2024 canada.ca.
Which edge cases change the first year claim?
Acquired in 2024, available for use in 2025. The acquisition date picks the version. That property is original accelerated investment incentive property, so its factor is nil and the first claim is the full rate, not 1.5 times laws-lois.justice.gc.ca.
Classes 44, 46 and 50. Property acquired and available for use after April 15, 2024 and before 2027 gets factors that reach 100% (class 50: 55% x (1 + 9/11)). For property in those classes that becomes available for use after 2026 the factor is nil, so a class 50 computer put into use in 2027 claims 55% in its first year, not 82.5% laws-lois.justice.gc.ca.
Disposals in the same year. The extra 50% applies to the net addition. Proceeds credited to the class in the year first offset additions that don't qualify, and only the excess reduces the qualifying additions laws-lois.justice.gc.ca.
Costs incurred before 2025. Where property qualifies only because nobody claimed CCA on it earlier, costs incurred before 2025 are left out of the enhanced amount and go under the half year rule instead, under Regulation 1100(2.021) laws-lois.justice.gc.ca.
A year that starts in 2029 and ends in 2030. Regulation 1100(2.011) blends the 2029 and 2030 factors, weighted by the additions that became available for use in each calendar year laws-lois.justice.gc.ca.
Greenhouses. An eligible greenhouse acquired after November 3, 2025 that your client elects into its own class claims 100% under paragraph 1100(1)(ze) for years ending before 2030 and is carved out of the reaccelerated factor, enacted by the Spring Economic Update 2026 Implementation Act (S.C. 2026, c. 22) laws-lois.justice.gc.ca.
Sources
Does the incentive apply to used equipment?
Yes, if your client bought it at arm's length and not through a rollover. The definition only fails property that was previously depreciated and also came from a related owner or a tax deferred transfer laws-lois.justice.gc.ca.
Can I use the 1.5x on a 2025 return that was already filed with the half year rule?
The rule is deemed in force January 1, 2025, so property acquired in 2025 qualifies for that year laws-lois.justice.gc.ca. A return filed before the March 26, 2026 royal assent with the half year rule claimed less than the maximum, so ask the CRA to adjust the CCA claim for that year.
Does the incentive change the rate in later years?
No. It only changes the first year. From the second year on, your client claims the normal class rate on the lower UCC laws-lois.justice.gc.ca.
Is a zero emission vehicle covered by this incentive?
Not by this definition. Classes 54 to 56 are excluded from reaccelerated investment incentive property and get their own factors in Regulation 1100(2), which give 100% in the first year for vehicles available for use before 2030 laws-lois.justice.gc.ca. See immediate expensing.
General information for the tax year shown, not advice for a specific client. Confirm the facts before you file or remit.