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New Immediate Expensing of Depreciable Property for Corporations (T2 Schedule 8)

The 2021 federal budget proposes to provide temporary immediate expensing to Canadian-Controlled Private Corporations (CCPCs) for eligible property acquired on or after April 19, 2021, and that becomes available for use before January 1, 2024, up to a maximum amount of $1.5 million per taxation year. This $1.5 million limit would be shared among associated members of a group of CCPCs. The limit would be prorated for taxation years that are shorter than 365 days.

Eligible property under this new measure would be capital property that is subject to the CCA rules, other than property included in CCA classes 1 to 6, 14.1, 17, 47, 49 and 51, which are generally long-lived assets.

See the section on Immediate Expensing in Annex 6 of the Federal Budget 2021 (page 614 in the PDF document). 

Revenu Québec has also announced its intention to harmonize with this new immediate expensing rule in an information bulletin indicating that this measure will be applicable on the same date as that retained for the application of the federal measure. See Information Bulletin 2021-5.

TaxCycle preparers have asked us when we will implement this new measure in TaxCycle T2. As of this date, draft legislation is not yet available; therefore, we cannot begin revising the CCA calculations in T2 and CO-17 returns. As soon as draft legislation becomes available, we will begin updating the CCA calculations. In the meantime, we thank you for your patience.