Capital Cost Allowance Rates – 2016

Description of Property Rate1 Class
Buildings acquired since 1988, including component parts 4% 1
Buildings acquired on or after March 19, 20072 and used 90%+ for manufacturing and processing (separate class) 10%3
Buildings acquired on or after March 19, 20072 and used 90%+ for non-residential purposes (separate class) 6%3
Fences, greenhouses, wood buildings (farming and fishing) 10% 6
Assets not included in any other class such as accessories, equipment, furniture, photocopiers, telephones, tools costing more than $500 and outdoor advertising panels 20% 8
Automobiles, panel trucks, trucks, tractors, trailers 30% 10
Passenger vehicles, the cost of which is equal to or exceeds prescribed amounts ($30,000 + tax – see Section V) 30% 10.1
Application software, small tools, cutlery, linen, uniforms, moulds, medical instruments costing less than $500 and rented videotapes 100% 12
Leasehold improvements Lease term4 13
Taxis, automobiles acquired for short-term leasing and coin-operated video games 40% 16
Trucks and tractors designed for hauling freight 40%5 16
Parking areas or similar surface construction 8% 17
Manufacturing or processing equipment acquired before 2016 50% Straight-line 29
Manufacturing or processing equipment acquired after 2015  and before 2026 50% 53
Computer equipment, systems software and related equipment 55% 50
Data network infrastructure equipment 30% 46

1 Rates are declining balance unless otherwise indicated.
2 Building must not have been acquired or used by anyone before March 19, 2007.
3 Includes additions and modifications made on or after March 19, 2007 to a building included in a separate class even though the building was acquired before that date.
4 Straight-line capital cost allowance over the lease term (including the first renewal period), for a minimum of 5 years and a maximum of 40 years.
5 60% rate in Quebec for new vehicles.