Reaccelerated Investment Incentive Property (RIIP)

Updated: 2026-02-18

Bill C-15 (“An Act to implement certain provisions of the budget tabled in Parliament on November 4, 2025”) introduced a new measure called Reaccelerated Investment Incentive Property (RIIP). 

The RIIP measure reinstates the Accelerated Investment Incentive Property (AIIP) rule originally introduced in 2018 and which was set to expire after 2027. In essence, in the year of acquisition, the RIIP measure provides enhanced capital cost allowance (CCA) for qualifying properties acquired on or after January 1, 2025.

Under the RIIP rule, the mechanics of the enhanced CCA calculation are very similar to those under AIIP. When a RIIP is acquired and added to a CCA class, the undepreciated capital cost (UCC) is adjusted by the product of acquisition amount multiplied by relevant factors. You can download the listing of relevant factors here. This list is also available within TaxCycle on the S8Note in TaxCycle T2 and T5013, and the RIIPNote in T1 and T3. 

See the examples below to learn how to apply RIIP in TaxCycle T2. While the examples provided are for T2 returns, they can easily be adapted for T1, T3 or T5013.

General Rule

Property eligible for reaccelerated CCA is called “Reaccelerated Investment Incentive Property” (RIIP). RIIP is a depreciable property acquired by the taxpayer after 2024 and becomes available for use before 2034. As with AIIP, the half-year rule is suspended for RIIP and, in general, CCA for RIIP is equal to three times the normal first-year CCA (when CCA was subject to the half-year rule).

In the S8AssetManager, override the UCC adjustment in the Net addition calculation section as shown below and the UCC adjustment will be used to calculate a revised amount of “Base for CCA.”

Productivity-Enhancing Assets (Classes 44, 46 and 50)

In the April 2024 federal budget, the Department of Finance announced an accelerated CCA measure for “productivity-enhancing assets.” The proposed measure states that the CCA for classes 44, 46 and 50 will be fully written off for additions made after April 15, 2024, by grossing the UCC of the additions using multipliers of 3, 7/3 and 9/11, respectively. While this measure was not enacted at the time, Budget 2025 is reinstating the measure which applies retroactively to capital assets acquired on or after April 16, 2024.

In the S8AssetManager, override the UCC adjustment in the Net addition calculation section as shown below and the UCC adjustment will be used to calculate a revised amount of “Base for CCA.” 

Class 13

In the year of acquisition, a new leasehold acquired after 2024 and before 2029 is eligible for 150% of the amount calculated in accordance with Schedule III of the Income Tax Act Regulation, and the half-year rule is suspended.

In the case of class 13, override the CCA calculation directly in the S8AssetManager as shown below.

Class 14

In the year of acquisition, a taxpayer is eligible for an additional 50% CCA for an intangible asset acquired after 2024 and before 2032. Class 14 is not subject to the half-year rule.

In the case of class 14, override the CCA calculation directly in the S8AssetManager as shown below. 

Québec Special Carve-Out Rule for Qualifying Intellectual Property (Class 14.1)

As per the March 2025 Québec budget, the extension of the Accelerated Investment Incentive will NOT apply to property that is a qualifying intellectual property (QIP) included in Class 14.1 of Schedule B of the Regulation respecting the Québec Taxation Act, and which becomes available for use before 2026. Such a property is carved out from the federal RIIP measure and will continue to benefit from the tax treatment granted under the Québec tax system. Refer to page A.97 of the Québec budget for more information.