Effective January 1, 2017 the Eligible Capital Property regime has been repealed and replaced with new capital cost allowance (CCA) class. Expenditure will be added to the new CCA class and CCA rules will generally apply, including recapture, capital gains, and depreciation.
Additions to CEC are not subject to half-year rule, but additions to new CCA class will be. Companies that are planning to acquire a substantial value of eligible property may want to do so before the end of 2016. This will ensure that it can tax the full 7% CEC deduction in the first year of acquisition.
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