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Capital cost allowance (CCA)
Last Update: April 2, 2026
Canada
Deduct depreciable property costs over time
Tax Credits
Overview
Capital cost allowance lets you deduct the cost of depreciable property over several years. It applies to property such as buildings, furniture, or equipment used in business or professional activities.
At a glance
Funding available
Financing goals
- No objectives are currently available
Eligible Funding
- No Condition
Timeline
- Open continuously
Eligible candidates
Eligible Industries
- All industries
Location
- Canada
Legal structures
- For-profit business
- Sole proprietorship
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- All groups
Activities funded
- Acquisition of depreciable property for business or professional use.
- Use of property that wears out or becomes obsolete over time.
Eligibility
- Used for business or professional activities.
- Applies to depreciable property.
- Property must wear out or become obsolete over time.
Who is eligible?
- Sole proprietors.
- Partnerships.
- Businesses and professionals using depreciable property.
Eligible expenses
- Cost of depreciable property such as buildings, furniture, and equipment.
Ineligible Costs and Activities
- Total cost of the asset in the year of acquisition.
Eligible geographic areas
- Canada
How to apply
- Step 1: Identify depreciable property
- Confirm the property is used in your business or professional activities.
- Determine whether the property is depreciable.
- Step 2: Calculate the allowance
- Use the CRA guidance to determine the correct CCA class and rate.
- Account for any grants, subsidies, or rebates that affect the capital cost.
- Step 3: Claim the deduction
- Report the CCA when filing business or professional income.
- Use the relevant CRA forms and publications if needed.
Processing and Agreement
- Review how the property is classified for CCA purposes.
- Apply the appropriate CCA rules and rates.
- Claim the deduction when reporting business or professional income.
Additional information
- Capital cost allowance is claimed over several years, not all at once.
- It applies to depreciable property used in business or professional activities.
- CRA provides guidance on how grants, subsidies, and rebates affect property cost.
- Special rules may apply for personal use, non-arm's length transactions, and property disposals.
