The only Class 43.1 or 43.2 property transactions of the taxpayer were that it acquired (solar energy) equipment described in Class 43.1(d)(vi) in November 2024 (becoming available for use in January 2025) for $20M and acquired more such equipment in June 2027 (becoming available for use in July 2027) for $10M. The specified energy property rules did not apply because it met one of the exceptions in Reg.1100(25) or (26).
CRA noted that because the $20M of property was acquired before 2025, it would be a Class 43.2 property (50% CCA rate) rather than a Class 43.1 property (30% CCA rate) even though no CCA could be claimed until 2025 due to the available-for-use rules.
Its CCA claim for 2025 would be calculated as follows:
| Capital cost | $20M |
| AII per Reg. 1100(2) – A - (c)(ii) (i.e., 1/2 X $20M) | $10M |
| Subtotal | $30M |
| CCA (50% Class 43.2 rate) | $15M |
The “clean tech” ITC under s. 127.45(1) for 2027 would be 20% of the capital cost of $20M, or $4M.
CCA for 2026 would be $0.5M (i.e., the 50% CCA rate applied to the $20M capital cost as reduced by the $4M ITC claimed and the $15M CCA claim).
The CCA claim for 2027 would consist of a further $0.25M for the Class 43.2 property plus CCA regarding the $10M Class 43.1 acquisition calculated as follows:
| Capital cost | $10M |
| AII per Reg. 1100(2) – A - (b)(iii) (i.e., 5/6 X $10M) | $8.33M |
| Subtotal | $18.33M |
| CCA (30% Class 43.2 rate) | $5.5M |
The clean tech ITC for 2027 would be 20% of the capital cost of $10M, or $2M.