Income Tax Regulations (C.R.C., c. 945)

Regulations are current to 2014-12-22 and last amended on 2014-12-16. Previous Versions

SCHEDULE II(Sections 215, 700, 701, 1100 to 1105, 1205, 1206, 1700, 1704, 3900, 4600, 4601, 5202 and 5204)CAPITAL COST ALLOWANCES

Class 1(4 per cent)

Property not included in any other class that is

  • (a) a bridge;

  • (b) a canal;

  • (c) a culvert;

  • (d) a dam;

  • (e) a jetty acquired before May 26, 1976;

  • (f) a mole acquired before May 26, 1976;

  • (g) a road, sidewalk, airplane runway, parking area, storage area or similar surface construction, acquired before May 26, 1976;

  • (h) railway track and grading, including components such as rails, ballast, ties and other track material,

    • (i) that is not part of a railway system, or

    • (ii) that was acquired after May 25, 1976;

  • (i) railway traffic control or signalling equipment, acquired after May 25, 1976, including switching, block signalling, interlocking, crossing protection, detection, speed control or retarding equipment, but not including property that is principally electronic equipment or systems software therefor;

  • (j) a subway or tunnel, acquired after May 25, 1976;

  • (k) electrical generating equipment (except as specified elsewhere in this Schedule);

  • (l) a pipeline, other than

    • (i) a pipeline that is gas or oil well equipment, and

    • (ii) a pipeline that is for oil or natural gas if the Minister, in consultation with the Minister of Natural Resources, is or has been satisfied that the main source of supply for the pipeline is or was likely to be exhausted within 15 years after the date on which the operation of the pipeline commenced;

  • (m) the generating or distributing equipment and plant (including structures) of a producer or distributor of electrical energy;

  • (n) manufacturing and distributing equipment and plant (including structures) acquired primarily for the production or distribution of gas, except

    • (i) a property acquired for the purpose of producing or distributing gas that is normally distributed in portable containers,

    • (ii) a property acquired for the purpose of processing natural gas, before the delivery of such gas to a distribution system, or

    • (iii) a property acquired for the purpose of producing oxygen or nitrogen;

  • (o) the distributing equipment and plant (including structures) of a distributor of water;

  • (p) the production and distributing equipment and plant (including structures) of a distributor of heat; or

  • (q) a building or other structure, or a part of it, including any component parts such as electric wiring, plumbing, sprinkler systems, air-conditioning equipment, heating equipment, lighting fixtures, elevators and escalators (except property described in any of paragraphs (k) and (m) to (p) of this Class or in any of paragraphs (a) to (e) of Class 8).

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/90-22, s. 10;
  • SOR/97-377, s. 6;
  • SOR/2005-371, s. 7;
  • SOR/2006-117, s. 8;
  • SOR/2010-93, s. 27(F).

Class 2(6 per cent)

Property that is

  • (a) electrical generating equipment (except as specified elsewhere in this Schedule),

  • (b) a pipeline, other than gas or oil well equipment, unless, in the case of a pipeline for oil or natural gas, the Minister in consultation with the Minister of Energy, Mines and Resources, is or has been satisfied that the main source of supply for the pipeline is or was likely to be exhausted within 15 years from the date on which operation of the pipeline commenced,

  • (c) the generating or distributing equipment and plant (including structures) of a producer or distributor of electrical energy, except a property included in Class 10, 13, 14, 26 or 28,

  • (d) manufacturing and distributing equipment and plant (including structures) acquired primarily for the production or distribution of gas, except

    • (i) a property included in Class 10, 13 or 14,

    • (ii) a property acquired for the purpose of producing or distributing gas that is normally distributed in portable containers,

    • (iii) a property acquired for the purpose of processing natural gas, before delivery of such gas to a distribution system, or

    • (iv) a property acquired for the purpose of producing oxygen or nitrogen,

  • (e) the distributing equipment and plant (including structures) of a distributor of water, except a property included in Class 10, 13 or 14,

  • (f) the production and distributing equipment and plant (including structures) of a distributor of heat, except a property included in Class 10, 13 or 14,

acquired by the taxpayer

  • (g) before 1988, or

  • (h) before 1990

    • (i) pursuant to an obligation in writing entered into by the taxpayer before June 18, 1987,

    • (ii) that was under construction by or on behalf of the taxpayer on June 18, 1987, or

    • (iii) that is machinery or equipment that is a fixed and integral part of a building, structure, plant facility or other property that was under construction by or on behalf of the taxpayer on June 18, 1987.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/79-427, s. 2;
  • SOR/85-270, s. 1;
  • SOR/86-1092, ss. 19(F), 20;
  • SOR/90-22, s. 11.

Class 3(5 per cent)

Property not included in any other class that is

  • (a) a building or other structure, or part thereof, including component parts such as electric wiring, plumbing, sprinkler systems, air-conditioning equipment, heating equipment, lighting fixtures, elevators and escalators, acquired by the taxpayer

    • (i) before 1988, or

    • (ii) before 1990

      • (A) pursuant to an obligation in writing entered into by the taxpayer before June 18, 1987,

      • (B) that was under construction by or on behalf of the taxpayer on June 18, 1987, or

      • (C) that is a component part of a building that was under construction by or on behalf of the taxpayer on June 18, 1987;

  • (b) a breakwater;

  • (c) a dock;

  • (d) a trestle;

  • (e) a windmill;

  • (f) a wharf;

  • (g) an addition or alteration, made during the period that is after March 31, 1967 and before 1988, to a building that would have been included in this class during that period but for the fact that it was included in Class 20;

  • (h) a jetty acquired after May 25, 1976;

  • (i) a mole acquired after May 25, 1976;

  • (j) telephone, telegraph or data communication equipment, acquired after May 25, 1976, that is a wire or cable;

  • (k) an addition or alteration, other than an addition or alteration described in paragraph (k) of Class 6, made after 1987, to a building included, in whole or in part,

    • (i) in this class,

    • (ii) in Class 6 by virtue of subparagraph (a)(viii) thereof, or

    • (iii) in Class 20,

    to the extent that the aggregate cost of all such additions or alterations to the building does not exceed the lesser of

    • (iv) $500,000, and

    • (v) 25 per cent of the aggregate of the amounts that would, but for this paragraph, be the capital cost of the building and any additions or alterations thereto included in this class or Class 6 or 20; or

  • (l) ancillary to a wire or cable referred to in paragraph (j) or Class 42 and that is supporting equipment such as a pole, mast, tower, conduit, brace, crossarm, guy or insulator.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/78-949, s. 2;
  • SOR/90-22, s. 12;
  • SOR/94-140, s. 17.

Class 4(6 per cent)

Property that would otherwise be included in another class in this Schedule that is

  • (a) a railway system or a part thereof, except automotive equipment not designed to run on rails or tracks, that was acquired after the end of the taxpayer’s 1958 taxation year and before May 26, 1976; or

  • (b) a tramway or trolley bus system or a part thereof, except property included in Class 10, 13 or 14.

Class 5(10 per cent)

Property that is

  • (a) a chemical pulp mill or ground wood pulp mill, including buildings, machinery and equipment, but not including hydro-electric power plants and their equipment, or

  • (b) an integrated mill producing chemical pulp or ground wood pulp and manufacturing therefrom paper, paper board or pulp board, including buildings, machinery and equipment, but not including hydro-electric power plants and their equipment,

but not including any property that was acquired after the end of the taxpayer’s 1962 taxation year.

Class 6(10 per cent)

Property not included in any other class that is

  • (a) a building of

    • (i) frame,

    • (ii) log,

    • (iii) stucco on frame,

    • (iv) galvanized iron, or

    • (v) corrugated metal

    construction, including component parts such as electric wiring, plumbing, sprinkler systems, air-conditioning equipment, heating equipment, lighting fixtures, elevators and escalators, if the building

    • (vi) is used by the taxpayer for the purpose of gaining or producing income from farming or fishing,

    • (vii) has no footings or any other base support below ground level,

    • (viii) was acquired by the taxpayer before 1979 and is not a building described in subparagraph (vi) or (vii),

    • (ix) was acquired by the taxpayer after 1978 under circumstances such that

      • (A) he was obligated to acquire the building under the terms of an agreement in writing entered into before 1979, and

      • (B) the installation of footings or any other base support of the building was commenced before 1979, or

    • (x) was acquired by the taxpayer after 1978 under circumstances such that

      • (A) he commenced construction of the building before 1979, or

      • (B) the construction of the building was commenced under the terms of an agreement in writing entered into by him before 1979, and

    the installation of footings or any other base support of the building was commenced before 1979;

  • (b) a wooden breakwater;

  • (c) a fence;

  • (d) a greenhouse;

  • (e) an oil or water storage tank;

  • (f) a railway tank car acquired before May 26, 1976;

  • (g) a wooden wharf;

  • (h) an airplane hangar acquired after the end of the taxpayer’s 1958 taxation year;

  • (i) an addition or alteration, made

    • (A) during the period that is after March 31, 1967 and before 1979, or

    • (B) after 1978 if the taxpayer was obligated to have it made under the terms of an agreement in writing entered into before 1979,

    to a building that would have been included in this class during that period but for the fact that it was included in Class 20;

  • (j) a railway locomotive that is acquired after May 25, 1976 and before February 26, 2008 and that is not an automotive railway car;

  • (k) an addition or alteration, made after 1978 to a building included in this class by virtue of subparagraph (a)(viii), to the extent that the aggregate cost of all such additions and alterations to the building does not exceed $100,000.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/78-949, s. 3;
  • SOR/94-140, s. 18;
  • SOR/2009-126, s. 5.

Class 7(15 per cent)

Property that is

  • (a) a canoe or rowboat;

  • (b) a scow;

  • (c) a vessel, but not including a vessel

    • (i) of a separate class prescribed by subsection 1101(2a), or

    • (ii) included in Class 41;

  • (d) furniture, fittings or equipment attached to a property included in this class, but not including radiocommunication equipment;

  • (e) a spare engine for a property included in this class;

  • (f) a marine railway;

  • (g) a vessel under construction, other than a vessel included in Class 41;

  • (h) subject to an election made under subsection 1103(2i), property acquired after February 27, 2000 that is

    • (i) a rail suspension device designed to carry trailers that are designed to be hauled on both highways and railway tracks, or

    • (ii) a railway car;

  • (i) property that is acquired after February 27, 2000 (other than property included in paragraph (y) of Class 10), that is a railway locomotive and that is not an automotive railway car;

  • (j) pumping or compression equipment, including equipment ancillary to pumping and compression equipment, acquired after February 22, 2005 if the equipment pumps or compresses petroleum, natural gas or a related hydrocarbon for the purpose of moving it

    • (i) through a transmission pipeline,

    • (ii) from a transmission pipeline to a storage facility, or

    • (iii) to a transmission pipeline from a storage facility; or

  • (k) pumping or compression equipment that is acquired after February 25, 2008, including equipment ancillary to pumping and compression equipment, that is on a pipeline and that pumps or compresses carbon dioxide for the purpose of moving it through the pipeline.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/90-22, s. 13;
  • SOR/2005-371, s. 8;
  • SOR/2006-117, s. 9;
  • SOR/2009-126, s. 6.

Class 8(20 per cent)

Property not included in Class 1, 2, 7, 9, 11, 17 or 30 that is

  • (a) a structure that is manufacturing or processing machinery or equipment;

  • (b) tangible property attached to a building and acquired solely for the purpose of

    • (i) servicing, supporting or providing access to or egress from, machinery or equipment,

    • (ii) manufacturing or processing, or

    • (iii) any combination of the functions described in subparagraphs (i) and (ii);

  • (c) a building that is a kiln, tank or vat, acquired for the purpose of manufacturing or processing;

  • (d) a building or other structure, acquired after February 19, 1973, that is designed for the purpose of preserving ensilage on a farm;

  • (e) a building or other structure, acquired after February 19, 1973, that is

    • (i) designed to store fresh fruits or fresh vegetables at a controlled level of temperature and humidity, and

    • (ii) to be used principally for the purpose of storing fresh fruits or fresh vegetables by or for the person or persons by whom they were grown;

  • (f) electrical generating equipment acquired after May 25, 1976, if

    • (i) the taxpayer is not a person whose business is the production for the use of or distribution to others of electrical energy,

    • (ii) the equipment is auxiliary to the taxpayer’s main power supply, and

    • (iii) the equipment is not used regularly as a source of supply;

  • (g) electrical generating equipment, acquired after May 25, 1976, that has a maximum load capacity of not more than 15 kilowatts;

  • (h) portable electrical generating equipment acquired after May 25, 1976;

  • (i) a tangible capital property that is not included in another class in this Schedule except

    • (i) land or any part thereof or any interest therein,

    • (ii) an animal,

    • (iii) a tree, shrub, herb or similar growing thing,

    • (iv) an oil or gas well,

    • (v) a mine,

    • (vi) a specified temporary access road of the taxpayer,

    • (vii) radium,

    • (viii) a right of way,

    • (ix) a timber limit,

    • (x) a tramway track, or

    • (xi) property of a separate class prescribed by subsection 1101(2a);

  • (j) property not included in any other class that is radiocommunication equipment acquired after May 25, 1976;

  • (k) a rapid transit car that is used for the purpose of public transportation within a metropolitan area and is not part of a railway system;

  • (l) an outdoor advertising poster panel or bulletin board; or

  • (m) a greenhouse constructed of a rigid frame and a replaceable, flexible plastic cover.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/80-881, s. 1;
  • SOR/80-926, s. 3(F);
  • SOR/85-853, s. 1;
  • SOR/90-22, s. 14;
  • SOR/94-140, s. 19;
  • SOR/97-377, s. 7;
  • SOR/99-179, s. 12;
  • SOR/2005-371, s. 9.

Class 9(25 per cent)

Property acquired before May 26, 1976, other than property included in Class 30, that is

  • (a) electrical generating equipment, if

    • (i) the taxpayer is not a person whose business is the production for the use of or distribution to others of electrical energy,

    • (ii) the equipment is auxiliary to the taxpayer’s main power supply, and

    • (iii) the equipment is not used regularly as a source of supply,

  • (b) radar equipment,

  • (c) radio transmission equipment,

  • (d) radio receiving equipment,

  • (e) electrical generating equipment that has a maximum load capacity of not more than 15 kilowatts, or

  • (f) portable electrical generating equipment,

and property acquired after May 25, 1976 that is

  • (g) an aircraft;

  • (h) furniture, fittings or equipment attached to an aircraft; or

  • (i) a spare part for an aircraft, or for furniture, fittings or equipment attached to an aircraft.

Class 10(30 per cent)

Property not included in any other class that is

  • (a) automotive equipment, including a trolley bus, but not including

    • (i) an automotive railway car acquired after May 25, 1976,

    • (ii) a railway locomotive, or

    • (iii) a tramcar,

  • (b) a portable tool acquired after May 25, 1976 for the purpose of earning rental income for short terms, such as hourly, daily, weekly or monthly, except a property described in Class 12,

  • (c) harness or stable equipment,

  • (d) a sleigh or wagon,

  • (e) a trailer, including a trailer designed to be hauled on both highways and railway tracks,

  • (f) general-purpose electronic data processing equipment and systems software for that equipment, including ancillary data processing equipment, acquired after May 25, 1976 and before March 23, 2004 (or after March 22, 2004 and before 2005 if an election in respect of the property is made under subsection 1101(5q)), but not including property that is principally or is used principally as

    • (i) electronic process control or monitor equipment,

    • (ii) electronic communications control equipment,

    • (iii) systems software for a property referred to in subparagraph (i) or (ii), or

    • (iv) data handling equipment unless it is ancillary to general-purpose electronic data processing equipment,

  • (f.1) a designated underground storage cost, or

  • (f.2) an unmanned telecommunication spacecraft designed to orbit above the earth,

and property (other than property included in Class 41, 41.1 or 41.2 or property included in Class 43 that is described in paragraph (b) of that Class) that would otherwise be included in another Class in this Schedule, that is

  • (g) a building or other structure (other than property described in paragraph (l) or (m) that would otherwise be included in Class 1, 3 or 6 and that was acquired for the purpose of gaining or producing income from a mine, except

    • (i) a property included in Class 28,

    • (ii) a property acquired principally for the purpose of gaining or producing income from the processing of ore from a mineral resource that is not owned by the taxpayer,

    • (iii) an office building not situated on the mine property, or

    • (iv) a refinery that was acquired by the taxpayer

      • (A) before November 8, 1969, or

      • (B) after November 7, 1969 and that had been used before November 8, 1969 by any person with whom the taxpayer was not dealing at arm’s length;

    • (v) [Repealed, SOR/80-99, s. 1]

  • (h) contractor’s movable equipment, including portable camp buildings, acquired for use in a construction business or for lease to another taxpayer for use in that other taxpayer’s construction business, except a property included in

    • (i) this Class by virtue of paragraph (t),

    • (ii) a separate class prescribed by subsection 1101(2b), or

    • (iii) Class 22 or 38;

  • (i) a floor of a roller skating rink;

  • (j) gas or oil well equipment;

  • (k) property (other than property included in class 28 or property described in paragraph (l) or (m)) that was acquired for the purpose of gaining or producing income from a mine and that is

    • (i) a structure that would otherwise be included in Class 8, or

    • (ii) machinery or equipment,

    except a property acquired before May 9, 1972 for the purpose of gaining or producing income from the processing of ore after extraction from a mineral resource that is not owned by the taxpayer;

  • (l) property acquired after the 1971 taxation year for the purpose of gaining or producing income from a mine and providing services to the mine or to a community where a substantial proportion of the persons who ordinarily work at the mine reside, if such property is

    • (i) an airport, dam, dock, fire hall, hospital, house, natural gas pipeline, power line, recreational facility, school, sewage disposal plant, sewer, street lighting system, town hall, water pipeline, water pumping station, water system, wharf or similar property,

    • (ii) a road, sidewalk, airplane runway, parking area, storage area or similar surface construction, or

    • (iii) machinery or equipment ancillary to any of the property described in subparagraph (i) or (ii),

    but is not

    • (iv) a property included in Class 28, or

    • (v) a railway not situated on the mine property;

  • (m) property acquired after March 31, 1977, principally for the purpose of gaining or producing income from a mine, if such property is

    • (i) railway track and grading including components such as rails, ballast, ties and other track material,

    • (ii) property ancillary to the track referred to in subparagraph (i) that is

      • (A) railway traffic control or signalling equipment, including switching, block signalling, interlocking, crossing protection, detection, speed control or retarding equipment, or

      • (B) a bridge, culvert, subway, trestle or tunnel,

    • (iii) machinery or equipment ancillary to any of the property referred to in subparagraph (i) or (ii), or

    • (iv) conveying, loading, unloading or storing machinery or equipment, including a structure, acquired for the purpose of shipping output from the mine by means of the track referred to in subparagraph (i),

    but is not

    • (v) property included in Class 28, or

    • (vi) for greater certainty, rolling stock;

  • (n) property that was acquired for the purpose of cutting and removing merchantable timber from a timber limit and that will be of no further use to the taxpayer after all merchantable timber that the taxpayer is entitled to cut and remove from the limit has been cut and removed, unless the taxpayer has elected to include another property of this kind in another class in this Schedule;

  • (o) mechanical equipment acquired for logging operations, except a property included in Class 7;

  • (p) an access road or trail for the protection of standing timber against fire, insects or disease;

  • (q) property acquired for a motion picture drive-in theatre;

  • (r) property included in this class by virtue of subsection 1102(8) or (9), except a property included in Class 28;

  • (s) a motion picture film or video tape acquired after May 25, 1976, except a property included in paragraph (w) or (x) or in Class 12;

  • (t) a property acquired after May 22, 1979 that is designed principally for the purpose of

    • (i) determining the existence, location, extent or quality of accumulations of petroleum or natural gas,

    • (ii) drilling oil or gas wells, or

    • (iii) determining the existence, location, extent or quality of mineral resources,

    except a property included in a separate class prescribed by subsection 1101(2b);

  • (u) property acquired after 1980 to be used primarily in the processing in Canada of heavy crude oil recovered from a natural reservoir in Canada to a stage that is not beyond the crude oil stage or its equivalent that is

    • (i) property that would otherwise be included in Class 8 except railway rolling stock or a property described in paragraph (j) of Class 8,

    • (ii) an oil or water storage tank,

    • (iii) a powered industrial lift truck that would otherwise be included in paragraph (a), or

    • (iv) property that would otherwise be included in paragraph (f);

  • (v) property acquired after August 31, 1984 (other than property that is included in Class 30) that is equipment used for the purpose of effecting an interface between a cable distribution system and electronic products used by consumers of that system and that is designed primarily

    • (i) to augment the channel capacity of a television receiver or radio,

    • (ii) to decode pay television or other signals provided on a discretionary basis, or

    • (iii) to achieve any combination of functions described in subparagraphs (i) and (ii);

  • (w) a certified production acquired after 1987 and before March 1996;

  • (x) a Canadian film or video production; or

  • (y) a railway locomotive that is not an automotive railway car and that was not used or acquired for use for any purpose by any taxpayer before February 26, 2008.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/78-137, s. 6;
  • SOR/79-426, s. 4;
  • SOR/80-99, ss. 1, 2;
  • SOR/80-926, s. 4;
  • SOR/81-974, s. 14;
  • SOR/86-1136, s. 13;
  • SOR/89-27, s. 4;
  • SOR/90-22, s. 15;
  • SOR/94-140, s. 20;
  • SOR/94-169, s. 9;
  • SOR/2005-126, s. 6;
  • SOR/2005-414, s. 5;
  • SOR/2009-126, s. 7;
  • 2010, c. 25, s. 88;
  • SOR/2010-93, s. 28(F);
  • SOR/2011-9, s. 6;
  • 2013, c. 40, s. 116.

Class 10.1

Property that would otherwise be included in Class 10 that is a passenger vehicle, the cost of which to the taxpayer exceeds $20,000 or such other amount as may be prescribed for the purposes of subsection 13(2) of the Act.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/91-673, s. 5.

Class 11(35 per cent)

Property not included in any other class that is used to earn rental income and that is

  • (a) an electrical advertising sign owned by the manufacturer thereof, acquired before May 26, 1976; or

  • (b) an outdoor advertising poster panel or bulletin board acquired by the taxpayer

    • (i) before 1988, or

    • (ii) before 1990

      • (A) pursuant to an obligation in writing entered into by the taxpayer before June 18, 1987, or

      • (B) that was under construction by or on behalf of the taxpayer on June 18, 1987.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/90-22, s. 16.

Class 12(100 per cent)

Property not included in any other class that is

  • (a) a book that is part of a lending library;

  • (b) chinaware, cutlery or other tableware;

  • (c) a kitchen utensil costing less than

    • (i) $100, if acquired before May 26, 1976,

    • (ii) $200, if acquired after May 25, 1976, and before May 2, 2006, or

    • (iii) $500, if acquired after May 1, 2006;

  • (d) a die, jig, pattern, mould or last;

  • (e) a medical or dental instrument costing less than

    • (i) $100, if acquired before May 26, 1976,

    • (ii) $200, if acquired after May 25, 1976, and before May 2, 2006, or

    • (iii) $500, if acquired after May 1, 2006;

  • (f) a mine shaft, main haulage way or similar underground work designed for continuing use, or any extension thereof, sunk or constructed after the mine came into production, to the extent that the property was acquired before 1988;

  • (g) linen;

  • (h) a tool (other than an electronic communication device or electronic data processing equipment that is acquired after May 1, 2006 and that can be used for a purpose other than any of measuring, locating and calculating) costing less than

    • (i) $100, if acquired before May 26, 1976,

    • (ii) $200, if acquired after May 25, 1976, and before May 2, 2006, or

    • (iii) $500, if acquired after May 1, 2006;

  • (i) a uniform;

  • (j) the cutting or shaping part in a machine;

  • (k) apparel or costume, including accessories used therewith, used for the purpose of earning rental income;

  • (l) a video tape acquired before May 26, 1976;

  • (m) a motion picture film or video tape that is a television commercial message;

  • (n) a certified feature film or certified production;

  • (o) computer software acquired after May 25, 1976, but not including systems software and property that is described in paragraph (s);

  • (p) a metric scale or a scale designed for ready conversion to metric weighing, acquired after March 31, 1977 and before 1984 for use in a retail business and having a maximum weighing capacity of 100 kilograms;

  • (q) a designated overburden removal cost; or

  • (r) a video-cassette, a video-laser disk or a digital video disk, that is acquired for the purpose of renting and that is not expected to be rented to any one person for more than 7 days in any 30- day period;

and property that would otherwise be included in another class in this Schedule that is

  • (s) acquired by the taxpayer after August 8, 1989 and before 1993, for use in a business of selling goods or providing services to consumers that is carried on in Canada, or for lease to another taxpayer for use by that other taxpayer in such a business, and that is

    • (i) electronic bar code scanning equipment designed to read bar codes applied to goods held for sale in the ordinary course of the business,

    • (ii) a cash register or similar sales recording device designed with the capability of calculating and recording sales tax imposed by more than one jurisdiction in respect of the same sale,

    • (iii) equipment or computer software that is designed to convert a cash register or similar sales recording device to one having the capability of calculating and recording sales tax imposed by more than one jurisdiction in respect of the same sale, or

    • (iv) electronic equipment or computer software that is ancillary to property described in subparagraph (i), (ii) or (iii) and all or substantially all the use of which is in conjunction with that property.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/78-137, s. 7;
  • SOR/79-426, s. 5;
  • SOR/81-244, s. 2;
  • SOR/85-696, s. 20;
  • SOR/86-254, s. 3;
  • SOR/90-670, s. 2;
  • SOR/91-79, s. 14;
  • SOR/94-686, s. 44(F), 66(F);
  • SOR/95-244, s. 8(F);
  • SOR/2005-126, s. 7;
  • SOR/2010-93, s. 29;
  • SOR/2011-187, s. 2.

Class 13

Property that is a leasehold interest and property acquired by a taxpayer that would, if that property had been acquired by a person with whom the taxpayer was not dealing at arm’s length at the time the property was acquired by the taxpayer, be a leasehold interest of that person, except

  • (a) an interest in minerals, petroleum, natural gas, other related hydrocarbons or timber and property relating thereto or in respect of a right to explore for, drill for, take or remove minerals, petroleum, natural gas, other related hydrocarbons or timber;

  • (b) that part of the leasehold interest that is included in another class in this Schedule by reason of subsection 1102(5) or (5.1); or

  • (c) a property included in Class 23.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/94-140, s. 21.

Class 14

Property that is a patent, franchise, concession or licence for a limited period in respect of property, except

  • (a) a franchise, concession or licence in respect of minerals, petroleum, natural gas, other related hydrocarbons or timber and property relating thereto (except a franchise for distributing gas to consumers or a licence to export gas from Canada or from a province) or in respect of a right to explore for, drill for, take or remove minerals, petroleum, natural gas, other related hydrocarbons or timber;

  • (b) a leasehold interest;

  • (c) a property included in Class 23;

  • (d) a licence to use computer software; or

  • (e) a property that is included in Class 44.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/83-855, s. 2;
  • SOR/94-170, s. 4.

Class 15

Property that would otherwise be included in another class in this Schedule and that

  • (a) was acquired for the purpose of cutting and removing merchantable timber from a timber limit, and

  • (b) will be of no further use to the taxpayer after all merchantable timber that the taxpayer is entitled to cut and remove from the limit has been cut and removed,

except

  • (c) property that the taxpayer has, in the taxation year or a preceding taxation year, elected not to include in this class, or

  • (d) a timber resource property.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/94-140, s. 22.

Class 16(40 per cent)

Property acquired before May 26, 1976 that is

  • (a) an aircraft,

  • (b) furniture, fittings or equipment attached to an aircraft, or

  • (c) a spare part for a property included in this class,

property acquired after May 25, 1976 that is

  • (d) a taxicab,

property acquired after November 12, 1981 that is

  • (e) a motor vehicle that

    • (i) would be an automobile as that term is defined in subsection 248(1) of the Act, if that definition were read without reference to paragraph (d) thereof,

    • (ii) was acquired for the purpose of renting or leasing, and

    • (iii) is not expected to be rented or leased to any person for more than 30 days in any 12 month period,

property acquired after February 15, 1984 that is

  • (f) a coin-operated video game or pinball machine,

and property acquired after December 6, 1991 that is

  • (g) a truck or tractor designed for hauling freight, and that is primarily so used by the taxpayer or a person with whom the taxpayer does not deal at arm’s length in a business that includes hauling freight, and that has a “gross vehicle weight rating” (as that term is defined in subsection 2(1) of the Motor Vehicle Safety Regulations) in excess of 11,788 kg.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/83-340, s. 4;
  • SOR/85-696, s. 21;
  • SOR/91-673, s. 6;
  • SOR/94-140, s. 23, SOR/94-686, s. 66(F).

Class 17(8 per cent)

Property that would otherwise be included in another class in this Schedule that is

  • (a) a telephone system, telegraph system, or a part thereof, acquired before May 26, 1976, except

    • (i) radiocommunication equipment, or

    • (ii) a property included in Class 10, 13, 14 or 28, or

  • (a.1) property (other than a building or other structure) acquired after February 27, 2000 that has not been used for any purpose before February 28, 2000 and is

    • (i) electrical generating equipment (other than electrical generating equipment described in Class 43.1, 43.2 or 48 or in Class 8 because of paragraph (f), (g) or (h) of that Class), or

    • (ii) production and distribution equipment of a distributor of water or steam (other than such property described in Class 43.1 or 43.2) used for heating or cooling (including, for this purpose, pipe used to collect or distribute an energy transfer medium but not including equipment or pipe used to distribute water that is for consumption, disposal or treatment),

and property not included in any other class, acquired after May 25, 1976, that is

  • (b) telephone, telegraph or data communication switching equipment, except

    • (i) equipment installed on customers’ premises, or

    • (ii) property that is principally electronic equipment or systems software therefor; or

  • (c) a road (other than a specified temporary access road of the taxpayer), sidewalk, airplane runway, parking area, storage area or similar surface construction.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/99-179, s. 13;
  • SOR/2005-371, s. 10;
  • SOR/2006-117, s. 10;
  • SOR/2010-93, s. 30(F).

Class 18(60 per cent)

Property that is a motion picture film acquired before May 26, 1976, except

  • (a) a television commercial message; or

  • (b) a certified feature film.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/95-244, s. 9(F).

Class 19

Property acquired by the taxpayer after June 13, 1963 and before January 1, 1967 that would otherwise be included in Class 8 if,

  • (a) in the taxation year in which the property was acquired,

    • (i) the taxpayer was an individual who was resident in Canada for not less than 183 days, or

    • (ii) the taxpayer was a corporation that had a degree of Canadian ownership;

  • (b) the property was acquired for use in Canada in a business carried on by the taxpayer that,

    • (i) for the fiscal period in which the property was acquired, or

    • (ii) for the fiscal period in which the business first commenced selling goods in reasonable commercial quantities,

    whichever was later, was a business in which the aggregate of

    • (iii) its net sales, as they would be determined under paragraphs 71A(2)(d) and (f) of the former Act (within the meaning assigned by paragraph 8(b) of the Income Tax Application Rules), from the sale of goods processed or manufactured in Canada by the business,

    • (iv) an amount equal to that part of its gross revenue that is rent from goods processed or manufactured in Canada in the course of the business, and

    • (v) its gross revenue from advertisements in a newspaper or magazine produced by the business,

    was not less than 2/3 of the amount by which the gross revenue from the business for the period exceeded the aggregate of each amount paid or credited in the period to a customer of the business as a bonus, rebate or discount or for returned or damaged goods, and was not a business that was principally

    • (vi) operating a gas or oil well,

    • (vii) logging,

    • (viii) mining,

    • (ix) construction, or

    • (x) a combination of two or more of the activities referred to in subparagraphs (vi) to (ix); and

  • (c) the property had not been used for any purpose whatever before it was acquired by the taxpayer.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/94-686, ss. 48, 79(F), 81(F).

Class 20

Property that would otherwise be included in Class 3 or 6

  • (a) that was acquired after December 5, 1963 and before April 1, 1967 that is

    • (i) a building,

    • (ii) an extension to a building, outside the previously existing walls or roof of the building, if the aggregate cost of the extensions added in the aforementioned period exceeded the lesser of

      • (A) $100,000, and

      • (B) 25 per cent of the capital cost to the taxpayer of the building on December 5, 1963, or

    • (iii) an addition or alteration to a property described in subparagraph (i) or (ii),

    and that has been certified by the Minister of Industry, upon application by the taxpayer in such form as may be prescribed by the Minister of Industry,

    • (iv) to be situated in an area that was a designated area, as determined for the purposes of section 71A of the former Act (within the meaning assigned by paragraph 8(b) of the Income Tax Application Rules),

      • (A) at the time the property was acquired,

      • (B) in a case where the property was built by the taxpayer, at the time construction was commenced, or

      • (C) in a case where the property was built for the taxpayer pursuant to a contract entered into by the taxpayer, at the time the contract was entered into, and

    • (v) to have not been used for any purpose whatever before it was acquired by the taxpayer; or

  • (b) the capital cost of which was included in the approved capital costs as defined in the Area Development Incentives Act upon which approved capital cost the Minister of Industry has based the amount of a development grant authorized under that Act.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/94-686, s. 48;
  • SOR/2010-93, s. 31(F).

Class 21

Property that would otherwise be included in Class 8 or 19

  • (a) that was acquired after December 5, 1963 and before April 1, 1967 and that

    • (i) was acquired for use in a business carried on by the taxpayer that has been certified by the Minister of Industry, for the purposes of section 71A of the former Act (within the meaning assigned by paragraph 8(b) of the Income Tax Application Rules), to be a new manufacturing or processing business in a designated area for the fiscal period in which the property was acquired or for a subsequent fiscal period, and

    • (ii) had not been used for any purpose whatever before it was acquired by the taxpayer; or

  • (b) the capital cost of which was included in the approved capital costs as defined in the Area Development Incentives Act upon which approved capital cost the Minister of Industry has based the amount of a development grant authorized under that Act.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/94-686, ss. 48, 81(F).

Class 22

Property acquired by the taxpayer after March 16, 1964 and

  • (a) before 1988, or

  • (b) before 1990

    • (i) pursuant to an obligation in writing entered into by the taxpayer before June 18, 1987, or

    • (ii) that was under construction by or on behalf of the taxpayer on June 18, 1987

that is power-operated movable equipment designed for the purpose of excavating, moving, placing or compacting earth, rock, concrete or asphalt, except a property included in Class 7.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/79-426, s. 6;
  • SOR/90-22, s. 17.

Class 23(100 per cent)

Property that is

  • (a) a leasehold interest or a concession in respect of land granted under or pursuant to an agreement in writing with the Canadian Corporation for the 1967 World Exhibition where such leasehold interest or concession is to expire not later than June 15, 1968;

  • (b) a building or other structure, including component parts, erected on land that is the subject matter of a leasehold interest or concession described in paragraph (a) where such building or other structure, including component parts, is of a temporary nature and is required by the agreement to be removed not later than June 15, 1968;

  • (c) a leasehold interest or licence in respect of land granted under or pursuant to an agreement in writing with the Expo 86 Corporation where such leasehold interest or licence is to expire not later than January 31, 1987; or

  • (d) a building or other structure, including component parts, erected on land that is the subject matter of a leasehold interest or licence described in paragraph (c) where such building or other structure, including component parts, is of a temporary nature and is required by the agreement to be removed not later than January 31, 1987.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/85-13, s. 2;
  • SOR/94-686, s. 79(F).

Class 24

Property acquired after April 26, 1965 and before 1971

  • (a) that would otherwise be included in Class 2, 3, 6 or 8 and that

    • (i) was acquired primarily for the purpose of preventing, reducing or eliminating pollution of

      • (A) any of the inland, coastal or boundary waters of Canada, or

      • (B) any lake, river, stream, watercourse, pond, swamp or well in Canada,

      by industrial waste, refuse or sewage created by operations in the course of carrying on a business by the taxpayer or that would be created by such operations if the property had not been acquired and used, and

    • (ii) had not been used for any purpose whatever before it was acquired by the taxpayer,

    but not including property acquired for use in the production of by-products or the recovery of materials unless the by-products are produced from, or the materials are recovered from, materials that after April 26, 1965,

    • (iii) were being discarded as waste by the taxpayer, or

    • (iv) were commonly being discarded as waste by other taxpayers who carried on operations of a type similar to the operations carried on by the taxpayer,

and property acquired before 1999

  • (b) that would otherwise be included in another class in this Schedule

    • (i) that has not been included by the taxpayer in any other class,

    • (ii) that had not been used for any purpose whatever before it was acquired by the taxpayer,

    • (iii) that was acquired by the taxpayer after 1970 primarily for the purpose of preventing, reducing or eliminating pollution of

      • (A) any of the inland, coastal or boundary waters of Canada, or

      • (B) any lake, river, stream, watercourse, pond, swamp or well in Canada,

      that is caused, or that, if the property had not been acquired and used, would be caused by

      • (C) operations carried on by the taxpayer at a site in Canada at which operations have been carried on by him from a time that is before 1974,

      • (D) the operation in Canada of a building or plant by the taxpayer, the construction of which was either commenced before 1974 or commenced under an agreement in writing entered into by him before 1974, or

      • (E) the operation of transportation or other movable equipment that has been operated by the taxpayer in Canada (including any of the inland, coastal or boundary waters of Canada) from a time that is before 1974,

      or that was acquired by him after May 8, 1972, that would otherwise have been property referred to in this subparagraph except that

      • (F) it was acquired

        • (I) for the purpose of gaining or producing income from a business by a taxpayer whose business includes the preventing, reducing or eliminating of pollution of a kind referred to in this subparagraph that is caused or that otherwise would be caused primarily by operations referred to in clause (C), (D) or (E) carried on by other taxpayers (not including persons referred to in section 149 of the Act), and

        • (II) to be used in a business referred to in subclause (I) in the preventing, reducing or eliminating of pollution of a kind referred to in this subparagraph, or

      • (G) it was acquired

        • (I) for the purpose of gaining or producing income from a property by a corporation whose principal business is the purchasing of conditional sales contracts, accounts receivable, bills of sale, chattel mortgages, bills of exchange or other obligations representing part or all of the sale price of merchandise or services, the lending of money, or the leasing of property, or any combination thereof, and

        • (II) to be leased to a taxpayer (other than a person referred to in section 149 of the Act) to be used by him, in an operation referred to in clause (C), (D), (E) or (F), in the preventing, reducing or eliminating of pollution of a kind referred to in this subparagraph, and

    • (iv) that has, upon application by the taxpayer to the Minister of the Environment, been accepted by that Minister as property the primary use of which is to be the preventing, reducing or eliminating of pollution of a kind referred to in subparagraph (iii),

and for the purposes of paragraphs (a) and (b)

  • (c) where a corporation (in this paragraph referred to as the “predecessor corporation”) has, as a result of an amalgamation within the meaning assigned by subsection 87(1) of the Act, merged at any time after 1973 with one or more other corporations to form one corporate entity (in this paragraph referred to as the “new corporation”), the new corporation shall be deemed to be the same corporation as, and a continuation of, the predecessor corporation;

  • (d) where a corporation (in this paragraph referred to as the “subsidiary”) has been wound up at any time after 1973 in circumstances to which subsection 88(1) of the Act applies, the parent (within the meaning assigned by that subsection) shall be deemed to be the same corporation as, and a continuation of, the subsidiary; and

  • (e) this class shall be read without reference to subparagraph (b)(i) where paragraph (c) or (d) applies to the taxpayer and the property was acquired before 1992.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/78-146, s. 1;
  • SOR/79-426, s. 7;
  • SOR/94-140, s. 24;
  • SOR/94-686, s. 79(F);
  • SOR/97-377, s. 8;
  • SOR/2010-93, s. 32(F).

Class 25(100 per cent)

Property that would otherwise be included in another class in this Schedule that is property acquired by the taxpayer

  • (a) before October 23, 1968, or

  • (b) after October 22, 1968 and before 1974, where the acquisition of the property may reasonably be regarded as having been in fulfilment of an obligation undertaken in an agreement made in writing before October 23, 1968 and ratified, confirmed or adopted by the legislature of a province by a statute that came into force before that date,

if the taxpayer was, on October 22, 1968, a corporation, commission or association to which, on the assumption that October 22, 1968 was in its 1969 taxation year, paragraph 62(1)(c) of the former Act (within the meaning assigned by paragraph 8 (b) of the Income Tax Application Rules),

  • (c) would not apply; and

  • (d) would have applied but for subparagraph (i) or (ii) of that paragraph.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/94-686, ss. 48, 79(F).

Class 26(5 per cent)

Property that is

  • (a) a catalyst; or

  • (b) deuterium enriched water (commonly known as “heavy water”) acquired after May 22, 1979.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/79-427, s. 3.

Class 27

Property acquired before 1999 that would otherwise be included in another Class in this Schedule

  • (a) that has not been included by the taxpayer in any other class;

  • (b) that had not been used for any purpose whatever before it was acquired by the taxpayer;

  • (c) that was acquired by the taxpayer after March 12, 1970 primarily for the purpose of preventing, reducing or eliminating air pollution by

    • (i) removing particulate, toxic or injurious materials from smoke or gas, or

    • (ii) preventing the discharge of part or all of the smoke, gas or other air pollutant,

    that is discharged or that, if the property had not been acquired and used, would be discharged into the atmosphere as a result of

    • (iii) operations carried on by the taxpayer at a site in Canada at which operations have been carried on by him from a time that is before 1974,

    • (iv) the operation in Canada of a building or plant by the taxpayer, the construction of which was either commenced before 1974 or commenced under an agreement in writing entered into by him before 1974, or

    • (v) the operation of transportation or other movable equipment that has been operated by the taxpayer in Canada (including any of the inland, coastal or boundary waters of Canada) from a time that is before 1974,

    or that was acquired by him after May 8, 1972, that would otherwise have been property referred to in this paragraph except that

    • (vi) it was acquired

      • (A) for the purpose of gaining or producing income from a business by a taxpayer whose business includes the preventing, reducing or eliminating of air pollution that is caused or that otherwise would be caused primarily by operations referred to in subparagraph (iii), (iv) or (v) carried on by other taxpayers (not including persons referred to in section 149 of the Act), and

      • (B) to be used in a business referred to in clause (A) in the preventing, reducing or eliminating of air pollution in a manner referred to in this paragraph, or

    • (vii) it was acquired

      • (A) for the purpose of gaining or producing income from a property by a corporation whose principal business is the purchasing of conditional sales contracts, accounts receivable, bills of sale, chattel mortgages, bills of exchange or other obligations representing part or all of the sale price of merchandise or services, the lending of money, or the leasing of property, or any combination thereof, and

      • (B) to be leased to a taxpayer (other than a person referred to in section 149 of the Act) to be used by him, in an operation referred to in subparagraph (iii), (iv), (v) or (vi), in the preventing, reducing or eliminating of air pollution in a manner referred to in this paragraph; and

  • (d) that has, upon application by the taxpayer to the Minister of the Environment, been accepted by that Minister as property the primary use of which is to be the preventing, reducing or eliminating of air pollution in a manner referred to in paragraph (c),

and for the purposes of paragraphs (a) to (d),

  • (e) where a corporation (in this paragraph referred to as the “predecessor corporation”) has, as a result of an amalgamation within the meaning assigned by subsection 87(1) of the Act, merged at any time after 1973 with one or more other corporations to form one corporate entity (in this paragraph referred to as the “new corporation”), the new corporation shall be deemed to be the same corporation as, and a continuation of, the predecessor corporation;

  • (f) where a corporation (in this paragraph referred to as the “subsidiary”) has been wound up at any time after 1973 in circumstances to which subsection 88(1) of the Act applies, the parent (within the meaning assigned by that subsection) shall be deemed to be the same corporation as, and a continuation of, the subsidiary; and

  • (g) this class shall be read without reference to paragraph (a) where paragraph (e) or (f) applies to the taxpayer and the property was acquired before 1992.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/78-146, s. 2;
  • SOR/79-426, s. 8;
  • SOR/94-140, s. 25;
  • SOR/94-686, ss. 45(F), 79(F);
  • SOR/97-377, s. 9;
  • SOR/2010-93, s. 33(F).

Class 28

Property situated in Canada that would otherwise be included in another class in this Schedule that

  • (a) was acquired by the taxpayer

    • (i) before 1988, or

    • (ii) before 1990

      • (A) pursuant to an obligation in writing entered into by the taxpayer before June 18, 1987,

      • (B) that was under construction by or on behalf of the taxpayer on June 18, 1987, or

      • (C) that is machinery or equipment that is a fixed and integral part of a building, structure, plant facility or other property that was under construction by or on behalf of the taxpayer on June 18, 1987,

and that

  • (b) was acquired by the taxpayer principally for the purpose of gaining or producing income from one or more mines operated by the taxpayer and situated in Canada and each of which

    • (i) came into production in reasonable commercial quantities after November 7, 1969, or

    • (ii) was the subject of a major expansion after November 7, 1969

      • (A) whereby the greatest designed capacity, measured in weight of input of ore, of the mill that processed the ore from the mine was not less than 25% greater in the year following the expansion than it was in the year preceding the expansion, or

      • (B) where in the one year period preceding the expansion

        • (I) the Minister, in consultation with the Minister of Natural Resources, determines that the greatest designed capacity of the mine, measured in weight of output of ore, immediately after the expansion was not less than 25% greater than the greatest designed capacity of the mine immediately before the expansion, and

        • (II) either

          • 1. no mill processed the ore from the mine at any time, or

          • 2. the mill that processed the ore from the mine processed other ore,

  • (c) was acquired by the taxpayer

    • (i) after November 7, 1969,

    • (ii) before the coming into production of the mine or the completion of the expansion of the mine referred to in subparagraph (b)(i) or (ii), as the case may be, and

    • (iii) in the case of a mine that was the subject of a major expansion described in subparagraph (b)(ii), in the course of and principally for the purposes of the expansion,

  • (d) had not, before it was acquired by the taxpayer, been used for any purpose whatever by any person with whom the taxpayer was not dealing at arm’s length, and

  • (e) is any of the following, namely,

    • (i) property that was acquired before the mine came into production and that would, but for this class, be included in Class 10 by virtue of paragraph (g), (k), (l) or (r) of that class or would have been so included in that class if it had been acquired after the 1971 taxation year,

    • (ii) property that was acquired before the mine came into production and that would, but for this class, be included in Class 10 by virtue of paragraph (m) of that class, or

    • (iii) property that was acquired after the mine came into production and that would, but for this class, be included in Class 10 by virtue of paragraph (g), (k), (l) or (r) of that class,

or that would be described in paragraphs (b) to (e) if in those paragraphs each reference to a “mine” were read as a reference to a “mine that is a location in a bituminous sands deposit, oil sands deposit or oil shale deposit from which material is extracted”, and each reference to “after November 7, 1969” were read as “before November 8, 1969”.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/78-137, s. 8;
  • SOR/80-926, s. 5;
  • SOR/90-22, s. 18;
  • SOR/94-140, s. 26;
  • SOR/2000-327, s. 5.

Class 29

Property (other than property included in Class 41 solely because of paragraph (c) or (d) of that Class or property included in Class 47 because of paragraph (b) of that Class) that would otherwise be included in another class in this Schedule

  • (a) that is property manufactured by the taxpayer, the manufacture of which was completed by him after May 8, 1972, or other property acquired by the taxpayer after May 8, 1972,

    • (i) to be used directly or indirectly by him in Canada primarily in the manufacturing or processing of goods for sale or lease, or

    • (ii) to be leased, in the ordinary course of carrying on a business in Canada of the taxpayer, to a lessee who can reasonably be expected to use, directly or indirectly, the property in Canada primarily in Canadian field processing carried on by the lessee or in the manufacturing or processing by the lessee of goods for sale or lease, if the taxpayer is a corporation whose principal business is

      • (A) leasing property,

      • (B) manufacturing property that it sells or leases,

      • (C) the lending of money,

      • (D) the purchasing of conditional sales contracts, accounts receivable, bills of sale, chattel mortgages, bills of exchange or other obligations representing part or all of the sale price of merchandise or services, or

      • (E) selling or servicing a type of property that it also leases,

    or any combination thereof, unless use of the property by the lessee commenced before May 9, 1972;

  • (b) that is

    • (i) property that, but for this class, would be included in Class 8, except railway rolling stock or a property described in paragraph (j) of Class 8,

    • (ii) an oil or water storage tank,

    • (iii) a powered industrial lift truck,

    • (iv) electrical generating equipment described in Class 9,

    • (v) property that is described in paragraph (b) or (f) of Class 10, or

    • (vi) property that would be described in paragraph (f) of Class 10 if the portion of that paragraph before subparagraph (i) read as follows:

      “(f) general-purpose electronic data processing equipment and systems software for that equipment, including ancillary data processing equipment, acquired after March 18, 2007 and before January 28, 2009, but not including property that is principally or is used principally as”; and

  • (c) that is property acquired by the taxpayer

    • (i) before 1988,

    • (ii) before 1990

      • (A) pursuant to an obligation in writing entered into by the taxpayer before June 18, 1987,

      • (B) that was under construction by or on behalf of the taxpayer on June 18, 1987, or

      • (C) that is machinery or equipment that is a fixed and integral part of a building, structure, plant facility or other property that was under construction by or on behalf of the taxpayer on June 18, 1987, or

    • (iii) after March 18, 2007 and before 2016 if the property is machinery, or equipment,

      • (A) that would be described in paragraph (a) if subparagraph (a)(ii) were read without reference to “in Canadian field processing carried on by the lessee or,”, and

      • (B) that is described in any of subparagraphs (b)(i) to (iii) and (vi).

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/90-22, s. 19;
  • SOR/94-686, ss. 46(F), 66(F);
  • SOR/99-179, s. 14;
  • SOR/2009-115, s. 5;
  • SOR/2009-126, s. 8;
  • 2011, c. 24, s. 100;
  • 2013, c. 33, s. 40.

Class 30

Property of a taxpayer that is

  • (a) an unmanned telecommunication spacecraft that was designed to orbit above the earth and that was acquired by the taxpayer

    • (i) before 1988, or

    • (ii) before 1990

      • (A) pursuant to an obligation in writing entered into by the taxpayer before June 18, 1987, or

      • (B) that was under construction by or on behalf of the taxpayer on June 18, 1987; or

  • (b) equipment used for the purpose of effecting an interface between a cable or satellite distribution system (other than a satellite radio distribution system) and electronic products used by consumers of that system if the equipment

    • (i) is designed primarily

      • (A) to augment the channel capacity of a television receiver, or

      • (B) to decode pay television or other signals provided on a discretionary basis,

    • (ii) is acquired by the taxpayer after March 4, 2010, and

    • (iii) has not been used or acquired for use for any purpose by any taxpayer before March 5, 2010.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/90-22, s. 20;
  • 2010, c. 25, s. 89.

Class 31(5 per cent)

Property that is a multiple-unit residential building in Canada that would otherwise be included in Class 3 or Class 6 and in respect of which

  • (a) a certificate has been issued by Canada Mortgage and Housing Corporation certifying

    • (i) in respect of a building that would otherwise be included in Class 3, that the installation of footings or any other base support of the building was commenced

      • (A) after November 18, 1974 and before 1980, or

      • (B) after October 28, 1980 and before 1982,

      as the case may be, and

    • (ii) in respect of a building that would otherwise be included in Class 6, that the installation of footings or any other base support of the building was commenced after December 31, 1977 and before 1979,

    and that, according to plans and specifications for the building, not less than 80 per cent of the floor space will be used in providing self-contained domestic establishments and related parking, recreation, service and storage areas,

  • (b) not more than 20 per cent of the floor space is used for any purpose other than the purposes referred to in paragraph (a),

  • (c) the certificate referred to in paragraph (a) was issued on or before the later of

    • (i) December 31, 1981, and

    • (ii) the day that is 18 months after the day on which the installation of footings or other base support of the building was commenced, and

  • (d) the construction of the building proceeds, after 1982, without undue delay, taking into consideration acts of God, labour disputes, fire, accidents or unusual delay by common carriers or suppliers of materials or equipment,

and that was acquired by the taxpayer

  • (e) before June 18, 1987, or

  • (f) after June 17, 1987 pursuant to

    • (i) an obligation in writing entered into by the taxpayer before June 18, 1987, or

    • (ii) the terms of a prospectus, preliminary prospectus, registration statement, offering memorandum or notice required to be filed with a public authority in Canada and filed before June 18, 1987 with that public authority.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/78-146, s. 3;
  • SOR/79-426, s. 9;
  • SOR/81-244, s. 3;
  • SOR/82-1070, s. 1;
  • SOR/90-22, s. 21.

Class 32(10 per cent)

Property that is a multiple-unit residential building in Canada that would otherwise be included in Class 6 if the reference to “1979” in subparagraph (a)(viii) of that Class were read as a reference to “1980”, and in respect of which

  • (a) a certificate has been issued by Central Mortgage and Housing Corporation certifying

    • (i) that the installation of footings or any other base support of the building was commenced after November 18, 1974 and before 1978, and

    • (ii) that, according to plans and specifications for the building, not less than 80 per cent of the floor space will be used in providing self-contained domestic establishments and related parking, recreation, service and storage areas; and

  • (b) not more than 20 per cent of the floor space is used for any purpose other than the purposes referred to in subparagraph (a)(ii).

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/78-949, s. 4.

Class 33(15 per cent)

Property that is a timber resource property.

Class 34

Property that would otherwise be included in Class 1, 2 or 8

  • (a) that is

    • (i) electrical generating equipment,

    • (ii) production equipment and pipelines of a distributor of heat,

    • (iii) steam generating equipment that was acquired by the taxpayer primarily for the purpose of producing steam to operate property described in subparagraph (i), or

    • (iv) an addition to a property described in subparagraph (i), (ii) or (iii),

    but not including buildings or other structures,

  • (b) that was acquired by the taxpayer after May 25, 1976,

  • (c) that

    • (i) was acquired by the taxpayer for use by him in a business carried on in Canada, or

    • (ii) is to be leased by the taxpayer to a lessee for use by the lessee in Canada, and

  • (d) that is property in respect of which a certificate has been issued

    • (i) before December 11, 1979 by the Minister of Industry, Trade and Commerce certifying that the property is part of a plan designed to

      • (A) produce heat derived primarily from the consumption of wood wastes or municipal wastes,

      • (B) produce electrical energy by the utilization of fuel that is petroleum, natural gas or related hydrocarbons, coal, coal gas, coke, lignite or peat (in this clause referred to as “fossil fuel”), wood wastes or municipal wastes, or any combination thereof, if the consumption of fossil fuel (expressed as the high heat value of the fossil fuel), if any, chargeable to electrical energy on an annual basis in respect of the property is no greater than 7,000 British Thermal Units per kilowatt-hour of electrical energy produced, or

      • (C) recover heat that is a by-product of an industrial process, or

    • (ii) after December 10, 1979, by the Minister of Energy, Mines and Resources certifying that the property is part of a plan designed to

      • (A) produce heat derived primarily from the consumption of natural gas, coal, coal gas, lignite, peat, wood wastes or municipal wastes, or any combination thereof,

      • (B) produce electrical energy by the utilization of fuel that is petroleum, natural gas or related hydrocarbons, coal, coal gas, coke, lignite or peat (in this clause referred to as “fossil fuel”), wood wastes or municipal wastes, or any combination thereof, if the consumption of fossil fuel (expressed as the high heat value of the fossil fuel), if any, chargeable to electrical energy on an annual basis in respect of the property is no greater than 7,000 British Thermal Units per kilowatt-hour of electrical energy produced, or

      • (C) recover heat that is a by-product of an industrial process,

and property that was acquired by the taxpayer after December 10, 1979 (other than property described in paragraph (a)) and would otherwise be included in another Class in this Schedule

  • (e) that is

    • (i) active solar heating equipment including solar collectors, solar energy conversion equipment, storage equipment, control equipment, equipment designed to interface solar heating equipment with other heating equipment, and solar water heaters, used to

      • (A) heat a liquid or air to be used directly in the course of manufacturing or processing,

      • (B) provide space heating when installed in a new building or other new structure at the time of its original construction where that construction commenced after December 10, 1979, or

      • (C) heat water for a use other than a use described in clause (A) or (B),

    • (ii) a hydro electric installation of a producer of hydro electric energy with a planned maximum generating capacity not exceeding 15 megawatts upon completion of site development that is the generating equipment and plant (including structures) of that producer including a canal, a dam, a dyke, an overflow spillway, a penstock, a powerhouse complete with generating equipment and other equipment ancillary thereto, control equipment, fishways or fish bypasses and transmission equipment, except distribution equipment and a property included in Class 10 or 17,

    • (iii) heat recovery equipment that is designed to conserve energy or reduce the requirement to acquire energy by extracting and reusing heat from thermal waste including condensers, heat exchange equipment, steam compressors used to upgrade low pressure steam, waste heat boilers and ancilliary equipment such as control panels, fans, instruments or pumps,

    • (iv) an addition or alteration to a hydro electric installation described in subparagraph (ii) that results in a change in generating capacity if the new maximum generating capacity at the hydro electric installation does not exceed 15 megawatts, or

    • (v) a fixed location device acquired after February 25, 1986, that is a wind energy conversion system designed to produce electrical energy, consisting of a wind-driven turbine, generating equipment and related equipment, including control and conditioning equipment, support structures, a powerhouse complete with equipment ancillary thereto, and transmission equipment, but not including distribution equipment, equipment designed to store electrical energy or property included in Class 10 or 17,

  • (f) that

    • (i) was acquired by the taxpayer for use by him for the purpose of gaining or producing income from a business carried on in Canada or from property situated in Canada, or

    • (ii) is to be leased by the taxpayer to a lessee for use by the lessee in Canada, and

  • (g) that is property in respect of which a certificate has been issued by the Minister of Energy, Mines and Resources,

but not including

  • (h) property in respect of which a certificate issued under paragraph (d) or (g) has been revoked pursuant to subsection 1104(11);

  • (i) property that had been used before it was acquired by the taxpayer unless the property had previously been included in Class 34 for the purpose of computing the income of the person from whom it was acquired;

  • (j) property acquired by the taxpayer after February 21, 1994 other than

    • (i) property acquired by the taxpayer

      • (A) pursuant to an agreement of purchase and sale in writing entered into by the taxpayer before February 22, 1994,

      • (B) in order to satisfy a legally binding obligation entered into by the taxpayer in writing before February 22, 1994 to sell electricity to a public power utility in Canada,

      • (C) that was under construction by or on behalf of the taxpayer on February 22, 1994, or

      • (D) that is machinery or equipment that is a fixed and integral part of a building, structure or other property that was under construction by or on behalf of the taxpayer on February 22, 1994, and

    • (ii) property acquired by the taxpayer before 1996

      • (A) pursuant to an agreement of purchase and sale in writing entered into before 1995 to acquire the property from a person or partnership in circumstances where

        • (I) the property was part of a project that was under construction by the person or partnership on February 22, 1994, and

        • (II) it is reasonable to conclude, having regard to all of the circumstances, that the person or partnership constructed the project with the intention of transferring all or part of the project to another taxpayer after completion, or

      • (B) pursuant to an agreement in writing entered into before 1995 by the taxpayer with a person or partnership where the taxpayer agrees to assume a legally binding obligation entered into by the person or partnership before February 22, 1994 to sell electricity to a public power utility in Canada, or

  • (k) property in respect of which a certificate has not been issued under paragraph (d) or (g) before the time that is the later of

    • (i) the end of 1995, and

    • (ii) 2 years after the property is acquired by the taxpayer or, where the property is property acquired in circumstances to which paragraph (j) applies, 2 years after substantial completion of the property.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/80-114, s. 1;
  • SOR/80-935, s. 2;
  • SOR/82-265, s. 6(F);
  • SOR/84-454, s. 3;
  • SOR/85-853, s. 2;
  • SOR/87-667, s. 1;
  • SOR/90-22, s. 22;
  • SOR/94-686, s. 66(F);
  • 77(F);
  • SOR/97-377, s. 10.

Class 35

Property not included in any other class that is

  • (a) a railway car acquired after May 25, 1976; or

  • (b) a rail suspension device designed to carry trailers that are designed to be hauled on both highways and railway tracks.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/94-140, s. 27.

Class 36

Property acquired after December 11, 1979 that is deemed to be depreciable property by virtue of paragraph 13(5.2)(c) of the Act.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/82-265, s. 6.

Class 37(15 per cent)

Property that would otherwise be included in another class in this schedule that is property used in connection with an amusement park, including

  • (a) land improvements (other than landscaping) for or in support of park activities, including

    • (i) roads, sidewalks, parking areas, storage areas, or similar surface constructions, and

    • (ii) canals,

  • (b) buildings (other than warehouses, administration buildings, hotels or motels), structures and equipment (other than automotive equipment), including

    • (i) rides, attractions and appurtenances associated with a ride or attraction, ticket booths and facades,

    • (ii) equipment, furniture and fixtures, in or attached to a building included in this class,

    • (iii) bridges, and

    • (iv) fences or similar perimeter structures, and

  • (c) automotive equipment (other than automotive equipment designed for use on highways or streets),

and property not included in another class in this schedule that is a waterway or a land improvement (other than landscaping, clearing or levelling land) used in connection with an amusement park.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/82-265, s. 6.

Class 38

Property not included in Class 22 but that would otherwise be included in that class if that class were read without reference to paragraphs (a) and (b) thereof.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/90-22, s. 23.

Class 39

Property acquired after 1987 and before February 26, 1992 that is not included in Class 29, but that would otherwise be included in that Class if that Class were read without reference to subparagraphs (b)(iii) and (v) and paragraph (c) thereof.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/90-22, s. 23;
  • SOR/94-169, s. 10.

Class 40

Property acquired after 1987 and before 1990 that is a powered industrial lift truck or property described in paragraph (b) or (f) of Class 10 and that is property not included in Class 29 but that would otherwise be included in that class if that class were read without reference to paragraph (c) thereof.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/90-22, s. 23.

Class 41

Property (other than property included in Class 41.1 or 41.2)

  • (a) not included in Class 28 that would otherwise be included in that Class if that Class were read without reference to paragraph (a) of that Class, and if subparagraphs (e)(i) to (iii) of that Class were read as follows:

    • “(i) property that was acquired before the mine came into production and that would, but for this Class, be included in Class 10 because of paragraph (g), (k), (l) or (r) of that Class or would have been so included in that Class if it had been acquired after the 1971 taxation year, and property that would, but for this Class, be included in Class 41 because of subsection 1102(8) or (9),

    • (ii) property that was acquired before the mine came into production and that would, but for this Class, be included in Class 10 because of paragraph (m) of that Class, or

    • (iii) property that was acquired after the mine came into production and that would, but for this Class, be included in Class 10 because of paragraph (g), (k), (l) or (r) of that Class, and property that would, but for this Class, be included in Class 41 because of subsection 1102(8) or (9);”

  • (a.1) that is the portion, expressed as a percentage determined by reference to capital cost, of property that

    • (i) would, but for this Class, be included in Class 10 because of paragraph (g), (k) or (l) of that Class, or that is included in this Class because of subsection 1102(8) or (9),

    • (ii) is not described in paragraph (a) or (a.2),

    • (iii) was acquired by the taxpayer principally for the purpose of gaining or producing income from one or more mines that are operated by the taxpayer and situated in Canada, and that became available for use for the purpose of subsection 13(26) of the Act in a taxation year, and

    • (iv) had not, before it was acquired by the taxpayer, been used for any purpose by any person or partnership with whom the taxpayer was not dealing at arm’s length,

    where that percentage is determined by the formula

    100 × (([A - (B × 365 / C)]) / A)

    where

    A 
    is the total of all amounts each of which is the capital cost of a property of the taxpayer that became available for use for the purpose of subsection 13(26) of the Act in the year and that is described in subparagraphs (i) to (iv) in respect of the mine or mines, as the case may be,
    B 
    is 5% of the taxpayer’s gross revenue from the mine or mines, as the case may be, for the year, and
    C 
    is the number of days in the year;
  • (a.2) that

    • (i) is property that would, but for this Class, be included in Class 10 because of paragraph (g), (k) or (l) of that Class or that is included in this Class because of subsection 1102(8) or (9),

    • (ii) was acquired by the taxpayer in a taxation year principally for the purpose of gaining or producing income from one or more mines each of which

      • (A) is one or more wells operated by the taxpayer for the extraction of material from a deposit of bituminous sands or oil shales, operated by the taxpayer and situated in Canada,

      • (B) was the subject of a major expansion after March 6, 1996, and

      • (C) is a mine in respect of which the Minister, in consultation with the Minister of Natural Resources, determines that the greatest designed capacity of the mine, measured in volume of oil that is not beyond the crude oil stage or its equivalent, immediately after the expansion was not less than 25% greater than the greatest designed capacity of the mine immediately before the expansion,

    • (iii) was acquired by the taxpayer

      • (A) after March 6, 1996,

      • (B) before the completion of the expansion, and

      • (C) in the course of and principally for the purposes of the expansion, and

    • (iv) had not, before it was acquired by the taxpayer, been used for any purpose by any person or partnership with whom the taxpayer was not dealing at arm’s length;

  • (a.3) that is property included in this Class because of subsection 1102(8) or (9), other than property described in paragraph (a) or (a.2) or the portion of property described in paragraph (a.1);

  • (b) that is property, other than property described in subsection 1101(2c),

    • (i) described in paragraph (f.1), (g), (j), (k), (l), (m), (r), (t) or (u) of Class 10 that would be included in that Class if this Schedule were read without reference to this paragraph, or

    • (ii) that is a vessel, including the furniture, fittings, radio communication equipment and other equipment attached thereto, that is designed principally for the purpose of

      • (A) determining the existence, location, extent or quality of accumulations of petroleum, natural gas or mineral resources, or

      • (B) drilling oil or gas wells,

    and that was acquired by the taxpayer after 1987 other than property that was acquired before 1990

    • (iii) pursuant to an obligation in writing entered into by the taxpayer before June 18, 1987,

    • (iv) that was under construction by or on behalf of the taxpayer on June 18, 1987, or

    • (v) that is machinery and equipment that is a fixed and integral part of property that was under construction by or on behalf of the taxpayer on June 18, 1987;

  • (c) acquired by the taxpayer after May 8, 1972, to be used directly or indirectly by the taxpayer in Canada primarily in Canadian field processing, where the property would be included in Class 29 if

    • (i) Class 29 were read without reference to

      • (A) the words “property included in Class 41 solely because of paragraph (c) or (d) of that Class or”,

      • (B) its subparagraphs (b)(iii) and (v), and

      • (C) its paragraph (c),

    • (ii) subsection 1104(9) were read without reference to paragraph (k) of that subsection, and

    • (iii) this Schedule were read without reference to this Class, Class 39 and Class 43; or

  • (d) acquired by the taxpayer after December 5, 1996 (otherwise than pursuant to an agreement in writing made before December 6, 1996) to be leased, in the ordinary course of carrying on a business in Canada of the taxpayer, to a lessee who can reasonably be expected to use, directly or indirectly, the property in Canada primarily in Canadian field processing carried on by the lessee, where the property would be included in Class 29 if

    • (i) Class 29 were read without reference to

      • (A) the words “property included in Class 41 solely because of paragraph (c) or (d) of that Class or”,

      • (B) its subparagraphs (b)(iii) and (v), and

      • (C) its paragraph (c), and

    • (ii) this Schedule were read without reference to this Class, Class 39 and Class 43.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/90-22, s. 23;
  • SOR/94-169, s. 11;
  • SOR/97-377, s. 11(E);
  • SOR/98-97, s. 5;
  • SOR/99-179, s. 15;
  • SOR/2000-327, s. 6;
  • SOR/2001-295, s. 9(E);
  • SOR/2005-371, s. 11;
  • SOR/2009-115, s. 6;
  • SOR/2011-9, s. 7;
  • SOR/2011-195, s. 9(F);
  • 2013, c. 40, s. 117.

Class 41.1

Oil sands property (other than specified oil sands property) that

  • (a) is acquired by a taxpayer after March 18, 2007 and before 2016 and that if acquired before March 19, 2007, would be included in paragraphs (a), (a.1) or (a.2) of Class 41, or

  • (b) is acquired by a taxpayer after 2015 and that if acquired before March 19, 2007 would be included in Class 41.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/2011-9, s. 8.

Class 41.2

Property, other than an oil sands property or eligible mine development property,

  • (a) that is acquired by a taxpayer after March 20, 2013 and before 2021 and that, if acquired on March 20, 2013, would be included in paragraph (a) or (a.1) of Class 41; or

  • (b) that is acquired by a taxpayer after 2020 and that, if acquired on March 20, 2013, would be included in paragraph (a) or (a.1) of Class 41.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. 2013, c. 40, s. 118.

Class 42

Property that is

  • (a) fibre-optic cable; or

  • (b) telephone, telegraph or data communication equipment that is a wire or cable (other than a cable included in this class because of paragraph (a)), acquired after February 22, 2005, and that has not been used, or acquired for use, for any purpose before February 23, 2005.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/94-140, s. 28;
  • SOR/2006-117, s. 11.

Class 43

Property acquired after February 25, 1992 that

  • (a) is not included in Class 29, but that would otherwise be included in that Class if that Class were read without reference to subparagraphs (b)(iii) and (v) and paragraph (c) thereof; or

  • (b) is property

    • (i) that is described in paragraph (k) of Class 10 and that would be included in that Class if this Schedule were read without reference to this paragraph and paragraph (b) of Class 41, and

    • (ii) that, at the time of its acquisition, can reasonably be expected to be used entirely in Canada and primarily for the purpose of processing ore extracted from a mineral resource located in a country other than Canada.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/94-169, s. 12;
  • SOR/97-377, s. 12.

Class 43.1

Property, other than reconditioned or remanufactured equipment, that would otherwise be included in Class 1, 2, 8 or 48 or in Class 17 because of paragraph (a.1) of that Class

  • (a) that is

    • (i) electrical generating equipment, including any heat generating equipment used primarily for the purpose of producing heat energy to operate the electrical generating equipment,

    • (ii) equipment that generates both electrical and heat energy other than, for greater certainty, fuel cell equipment,

    • (ii.1) fixed location fuel cell equipment that uses hydrogen generated only from internal, or ancillary, fuel reformation equipment,

    • (iii) heat recovery equipment used prima- rily for the purpose of conserving energy, or reducing the requirement to acquire energy, by extracting for reuse thermal waste that is generated by equipment referred to in subparagraph (i) or (ii),

    • (iii.1) district energy equipment that is part of a district energy system that uses thermal energy that is primarily supplied by electrical cogeneration equipment that would be property described in paragraphs (a) to (c) if read without reference to this subparagraph,

    • (iv) control, feedwater and condensate systems and other equipment, if that property is ancillary to equipment described in any of subparagraphs (i) to (iii), or

    • (v) an addition to a property described in any of subparagraphs (i) to (iv),

    other than buildings or other structures, heat rejection equipment (such as condensers and cooling water systems), transmission equipment, distribution equipment, fuel handling equipment that is not used to upgrade the combustible portion of the fuel and fuel storage facilities,

  • (b) that

    • (i) is situated in Canada,

    • (ii) is

      • (A) acquired by the taxpayer for use by the taxpayer for the purpose of gaining or producing income from a business carried on in Canada or from property situated in Canada, or

      • (B) leased by the taxpayer to a lessee for the use by the lessee for the purpose of gaining or producing income from a business carried on in Canada or from property situated in Canada, and

    • (iii) has not been used for any purpose before it was acquired by the taxpayer unless

      • (A) the property was depreciable property that

        • (I) was included in Class 34, 43.1 or 43.2 of the person from whom it was acquired, or

        • (II) would have been included in Class 34, 43.1 or 43.2 of the person from whom it was acquired had the person made a valid election to include the property in Class 43.1 or 43.2, as the case may be, under paragraph 1102(8)(d) or 1102(9)(d), and

      • (B) the property was acquired by the taxpayer not more than five years after the time it is considered to have become available for use, for the purpose of subsection 13(26) of the Act, by the person from whom it was acquired and remains at the same site in Canada as that at which that person used the property, and

  • (c) that is

    • (i) part of a system (other than an enhanced combined cycle system) that

      • (A) is used by the taxpayer, or by a lessee of the taxpayer, to generate electrical energy, or both electrical and heat energy, using only fuel that is eligible waste fuel, fossil fuel, producer gas, spent pulping liquor or any combination of those fuels, and

      • (B) has a heat rate attributable to fossil fuel (other than solution gas) not exceeding 6,000 BTU per kilowatt-hour of electrical energy generated by the system, which heat rate is calculated as the fossil fuel (expressed as the high heat value of the fossil fuel) used by the system that is chargeable to gross electrical energy output on an annual basis,

    • (ii) part of an enhanced combined cycle system that

      • (A) is used by the taxpayer, or by a lessee of the taxpayer, to generate electrical energy using only a combination of natural gas and thermal waste from one or more natural gas compressor systems located on a natural gas pipeline,

      • (B) has an incremental heat rate not exceeding 6,700 Btu per kilowatt-hour of electricity generated by the system, which heat rate is calculated as the natural gas (expressed as its high heat value) used by the system that is chargeable to gross electrical energy output on an annual basis, and

      • (C) does not have economically viable access to a steam host, or

    • (iii) equipment that is used by the taxpayer, or by a lessee of the taxpayer, to generate electrical energy in a process all or substantially all of the energy input of which is thermal waste, other than

      • (A) equipment that uses heat produced by a gas turbine that is part of the first stage of a combined cycle system, and

      • (B) equipment that, on the date of its acquisition, uses chlorofluorocarbons (CFCs) or hydrochlorofluorocarbons (HCFCs), within the meaning assigned by the Ozone-Depleting Substances Regulations, 1998,

and property, other than reconditioned or remanufactured equipment, that would otherwise be included in another Class in this Schedule

  • (d) that is

    • (i) property that meets the following conditions :

      • (A) it is used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of heating an actively circulated liquid or gas and is

        • (I) active solar heating equipment, including such equipment that consists of above ground solar collectors, solar energy conversion equipment, solar water heaters, energy storage equipment, control equipment and equipment designed to interface solar heating equipment with other heating equipment, or

        • (II) equipment that is part of a ground source heat pump system that transfers heat to or from the ground or groundwater (but not to or from surface water such as a river, a lake or an ocean) and that, at the time of installation, meets the standards set by the Canadian Standards Association for the design and installation of earth energy systems, including such equipment that consists of piping (including above or below ground piping and the cost of drilling a well, or trench- ing, for the purpose of installing that piping), energy conversion equipment, energy storage equipment, control equipment and equipment designed to enable the system to interface with other heating or cooling equipment, and

      • (B) it is not a building, part of a building (other than a solar collector that is not a window and that is integrated into a building), equipment used to heat water for use in a swimming pool, energy equipment that backs up equipment described in subclause (A)(I) or (II) nor equipment that distributes heated or cooled air or water in a building,

    • (ii) a hydro-electric installation of a producer of hydro-electric energy, where that installation

      • (A) has, if acquired after February 21, 1994 and before December 11, 2001, an annual average generating capacity not exceeding 15 megawatts upon completion of the site development, or, if acquired after December 10, 2001, a rated capacity at the hydro-electric installation site that does not exceed 50 megawatts, and

      • (B) is the electrical generating equipment and plant (including structures) of that producer including a canal, a dam, a dyke, an overflow spillway, a penstock, a powerhouse (complete with electrical generating equipment and other ancillary equipment), control equipment, fishways or fish bypasses, and transmission equipment,

      other than distribution equipment, property otherwise included in Class 10 and property that would be included in Class 17 if that Class were read without reference to its subparagraph (a.1)(i),

    • (iii) an addition or alteration, which is acquired after February 21, 1994 and before December 11, 2001, to a hydro-electric installation that is described in subparagraph (ii) or that would be so described if that installation were acquired by the taxpayer after February 21, 1994, and which results in an increase in generating capacity, if the resulting annual average generating capacity of the hydro-electric installation does not exceed 15 megawatts,

    • (iii.1) an addition or alteration, which is acquired after December 10, 2001, to a hydro-electric installation that is described in subparagraph (ii) or that would be so described if that installation were acquired by the taxpayer after February 21, 1994, and which results in an increase in generating capacity, if the resulting rated capacity at the hydro-electric installation site does not exceed 50 megawatts,

    • (iv) heat recovery equipment used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of conserving energy, or reducing the requirement to acquire energy, by extracting for reuse thermal waste that is generated directly in an industrial process (other than an industrial process that generates or processes electrical energy), including such equipment that consists of heat exchange equipment, compressors used to upgrade low pressure steam, vapour or gas, waste heat boilers and other ancillary equipment such as control panels, fans, instruments or pumps, but not including property that is employed in re-using the recovered heat (such as property that is part of the internal heating or cooling system of a building or electrical generating equipment), is a building or is equipment that recovers heat primarily for use for heating water in a swimming pool,

    • (v) a fixed location device that is a wind energy conversion system that

      • (A) is used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of generating electrical energy, and

      • (B) consists of a wind-driven turbine, electrical generating equipment and related equipment, including

        • (I) control, conditioning and battery storage equipment,

        • (II) support structures,

        • (III) a powerhouse complete with other ancillary equipment, and

        • (IV) transmission equipment,

      other than distribution equipment, auxiliary electrical generating equipment, property otherwise included in Class 10 and property that would be included in Class 17 if that Class were read without reference to its subparagraph (a.1)(i),

    • (vi) fixed location photovoltaic equipment that is used by the taxpayer, or a lessee of the taxpayer, primarily for the purpose of generating electrical energy from solar energy if the equipment consists of solar cells or modules and related equipment including inverters, control, conditioning and battery storage equipment, support structures and transmission equipment, but not including

      • (A) a building or a part of a building (other than a solar cell or module that is integrated into a building),

      • (B) auxiliary electrical generating equipment, property otherwise included in Class 10 and property that would be included in Class 17 if that Class were read without reference to its subparagraph (a.1)(i), and

      • (C) distribution equipment,

    • (vii) equipment used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of generating electrical energy solely from geothermal energy, including such equipment that consists of piping (including above or below ground piping and the cost of drilling a well, or trenching, for the purpose of installing that piping), pumps, heat exchangers, steam separators, electrical generating equipment and ancillary equipment used to collect the geothermal heat, but not including buildings, transmission equipment, distribution equipment, equipment designed to store electrical energy, property otherwise included in Class 10 and property that would be included in Class 17 if that Class were read without reference to its subparagraph (a.1)(i),

    • (viii) equipment used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of collecting landfill gas or digester gas, including such equipment that consists of piping (including above or below ground piping and the cost of drilling a well, or trenching, for the purpose of installing that piping), fans, compressors, storage tanks, heat exchangers and related equipment used to collect gas, to remove non-combustibles and contaminants from the gas or to store the gas, but not including property otherwise included in Class 10 or 17,

    • (ix) equipment used by the taxpayer, or by a lessee of the taxpayer, for the sole purpose of generating heat energy, primarily from the consumption of eligible waste fuel, producer gas or a combination of those fuels and not using any fuel other than eligible waste fuel, fossil fuel or producer gas, including such equipment that consists of fuel handling equipment used to upgrade the combustible portion of the fuel and control, feedwater and condensate systems, and other ancillary equipment, but not including equipment used for the purpose of producing heat energy to operate electrical generating equipment, buildings or other structures, heat rejection equipment (such as condensers and cooling water systems), fuel storage facilities, other fuel handling equipment and property otherwise included in Class 10 or 17,

    • (x) an expansion engine with one or more turbines, or cylinders, that convert the compression energy in pressurized natural gas into shaft power that generates electricity, including the related electrical generating equipment and ancillary controls, where the expansion engine

      • (A) is part of a system that is installed

        • (I) on a distribution line of a distributor of natural gas, or

        • (II) on a branch distribution line of a taxpayer primarily engaged in the manufacturing or processing of goods for sale or lease if the branch line is used to deliver natural gas directly to the taxpayer’s manufacturing or processing facility, and

      • (B) is used instead of a pressure reducing valve,

    • (xi) equipment used by the taxpayer, or by a lessee of the taxpayer, in a system that converts wood waste or plant residue into bio-oil, if that bio-oil is used primarily for the purpose of generating heat that is used directly in an industrial process or a greenhouse, generating electricity or generating electricity and heat, other than equipment used for the collection, storage or transportation of wood waste or plant residue, buildings or other structures and property otherwise included in Class 10 or 17,

    • (xii) fixed location fuel cell equipment used by the taxpayer, or by a lessee of the taxpayer, that uses hydrogen generated only from ancillary electrolysis equipment (or, if the fuel cell is reversible, the fuel cell itself) using electricity all or substantially all of which is generated by photovoltaic, wind energy conversion or hydro-electric equipment, of the taxpayer or the lessee, and equipment ancillary to the fuel cell equipment other than buildings or other structures, transmission equipment, distribution equipment, auxiliary electrical generating equipment and property otherwise included in Class 10 or 17,

    • (xiii) property that is part of a system that is used by the taxpayer, or by a lessee of the taxpayer, primarily to produce and store biogas, including equipment that is an anaerobic digester reactor, a buffer tank, a pre-treatment tank, biogas piping, a fan, a compressor, a heat exchanger, a biogas storage tank and equipment used to remove non-combustibles and contaminants from the gas, but not including

      • (A) property (other than a buffer tank) that is used to collect, move or store organic waste,

      • (B) equipment used to process the residue after digestion or to treat recovered liquids,

      • (C) buildings or other structures, and

      • (D) property otherwise included in Class 10 or 17,

    • (xiv) property that is used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of generating electricity using kinetic energy of flowing water or wave or tidal energy (otherwise than by diverting or impeding the natural flow of the water or by using physical barriers or dam-like structures), including support structures, control, conditioning and battery storage equipment, submerged cables and transmission equipment, but not including buildings, distribution equipment, auxiliary electricity generating equipment, property otherwise included in Class 10 and property that would be included in Class 17 if that class were read without reference to its subparagraph (a.1)(i),

    • (xv) district energy equipment that

      • (A) is used by the taxpayer or by a lessee of the taxpayer,

      • (B) is part of a district energy system that uses thermal energy that is primarily supplied by equipment that is described in subparagraphs (i), (iv) or (ix) or would be described in those subparagraphs if owned by the taxpayer, and

      • (C) is not a building, or

    • (xvi) equipment used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of generating producer gas (other than producer gas that is to be converted into liquid biofuels or chemicals), including related piping (including fans and compressors), air separation equipment, storage equipment, equipment used for drying or shredding eligible waste fuel, ash-handling equipment, equipment used to upgrade the producer gas into biomethane and equipment used to remove non-combustibles and contaminants from the producer gas, but not including buildings or other structures, heat rejection equipment (such as condensers and cooling water systems), equipment used to convert producer gas into liquid biofuels or chemicals and property otherwise included in Class 10 or 17, and

  • (e) that

    • (i) is situated in Canada,

    • (ii) is

      • (A) acquired by the taxpayer for use by the taxpayer for the purpose of gaining or producing income from a business carried on in Canada or from property situated in Canada, or

      • (B) leased by the taxpayer to a lessee for the use by the lessee for the purpose of gaining or producing income from a business carried on in Canada or from property situated in Canada, and

    • (iii) has not been used for any purpose before it was acquired by the taxpayer unless

      • (A) the property was depreciable property that

        • (I) was included in Class 34, 43.1 or 43.2 of the person from whom it was acquired, or

        • (II) would have been included in Class 34, 43.1 or 43.2 of the person from whom it was acquired had the person made a valid election to include the property in Class 43.1 or 43.2, as the case may be, under paragraph 1102(8)(d) or 1102(9)(d), and

      • (B) the property was acquired by the taxpayer not more than five years after the time it is considered to have become available for use, for the purpose of subsection 13(26) of the Act, by the person from whom it was acquired and remains at the same site in Canada as that at which that person used the property.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/97-377, s. 13;
  • SOR/2000-327, s. 7;
  • SOR/2001-295, s. 10;
  • SOR/2005-371, s. 12;
  • SOR/2005-415, s. 2;
  • err.(F), Vol. 140, No. 12;
  • SOR/2006-117, s. 12;
  • SOR/2006-249, s. 2;
  • SOR/2009-115, ss. 7, 12;
  • 2010, c. 25, s. 90;
  • SOR/2010-93, s. 34(F);
  • 2011, c. 24, s. 101;
  • 2012, c. 31, s. 70;
  • 2013, c. 40, s. 119;
  • 2014, c. 39, s. 90.

Class 43.2

Property that is acquired after February 22, 2005 and before 2020 (other than property that was included, before it was acquired, in another class in this Schedule by any taxpayer) and that is property that would otherwise be included in Class 43.1

  • (a) if the expression “6,000 BTU” in clause (c)(i)(B) of that Class were read as the expression “4,750 BTU”; or

  • (b) because of paragraph (d) of that Class.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/2006-117, s. 13;
  • SOR/2009-115, s. 8.

Class 44

Property that is a patent, or a right to use patented information for a limited or unlimited period.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/94-170, s. 5.

Class 45

Property acquired after March 22, 2004 and before March 19, 2007 (other than property acquired before 2005 in respect of which an election is made under subsection 1101(5q)) that is general-purpose electronic data processing equipment and systems software for that equipment, including ancillary data processing equipment, but not including property that is principally or is used principally as

  • (a) electronic process control or monitor equipment;

  • (b) electronic communications control equipment;

  • (c) systems software for equipment referred to in paragraph (a) or (b); or

  • (d) data handling equipment (other than data handling equipment that is ancillary to general-purpose electronic data processing equipment).

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/2005-414, s. 6;
  • SOR/2009-115, s. 9;
  • SOR/2010-93, s. 35(F).

Class 46

Property acquired after March 22, 2004 that is data network infrastructure equipment, and systems software for that equipment, that would, but for this Class, be included in Class 8 because of paragraph (i) of that Class.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/2005-414, s. 6;
  • SOR/2010-93, s. 36(F).

Class 47

Property that is

  • (a) transmission or distribution equipment (which may include for this purpose a structure) acquired after February 22, 2005 and that is used for the transmission or distribution of electrical energy, other than

    • (i) property that is a building, and

    • (ii) property that has been used or acquired for use for any purpose by any taxpayer before February 23, 2005; or

  • (b) equipment acquired after March 18, 2007 that is part of a liquefied natural gas facility that liquefies or regasifies natural gas, including controls, cooling equipment, compressors, pumps, storage tanks, vaporizers and ancillary equipment, loading and unloading pipelines on the facility site used to transport liquefied natural gas between a ship and the facility, and related structures, other than property that is

    • (i) acquired for the purpose of producing oxygen or nitrogen,

    • (ii) a breakwater, a dock, a jetty, a wharf, or a similar structure, or

    • (iii) a building.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/2006-117, s. 14;
  • SOR/2009-115, s. 10.

Class 48

Property acquired after February 22, 2005 that is a combustion turbine (including associated burners and compressors) that generates electrical energy, other than

  • (a) electrical generating equipment described in any of paragraphs (f) to (h) of Class 8;

  • (b) property acquired before 2006 in respect of which an election is made under subsection 1101(5t); and

  • (c) property that has been used or acquired for use for any purpose by any taxpayer before February 23, 2005.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/2006-117, s. 14.

Class 49

Property that is a pipeline, including control and monitoring devices, valves and other equipment ancillary to the pipeline, that

  • (a) is acquired after February 22, 2005, is used for the transmission (but not the distribution) of petroleum, natural gas or related hydrocarbons, and is not

    • (i) a pipeline described in subparagraph (l)(ii) of Class 1,

    • (ii) property that has been used or acquired for use for any purpose by any taxpayer before February 23, 2005,

    • (iii) equipment included in Class 7 because of paragraph (j) of that Class, or

    • (iv) a building or other structure; or

  • (b) is acquired after February 25, 2008, is used for the transmission of carbon dioxide, and is not

    • (i) equipment included in Class 7 because of paragraph (k) of that Class, or

    • (ii) a building or other structure.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/2006-117, s. 14;
  • SOR/2009-126, s. 9.

Class 50

Property acquired after March 18, 2007 that is general-purpose electronic data processing equipment and systems software for that equipment, including ancillary data processing equipment, but not including property that is included in Class 52 or that is principally or is used principally as

  • (a) electronic process control or monitor equipment;

  • (b) electronic communications control equipment;

  • (c) systems software for equipment referred to in paragraph (a) or (b); or

  • (d) data handling equipment (other than data handling equipment that is ancillary to general-purpose electronic data processing equipment).

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/2009-115, s. 11;
  • SOR/2009-126, s. 10;
  • SOR/2010-93, s. 37(F).

Class 51

Property acquired after March 18, 2007 that is a pipeline, including control and monitoring devices, valves and other equipment ancillary to the pipeline, used for the distribution (but not the transmission) of natural gas, other than

  • (a) a pipeline described in subparagraph (l)(ii) of Class 1 or in Class 49;

  • (b) property that has been used or acquired for use for any purpose by a taxpayer before March 19, 2007; and

  • (c) a building or other structure.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/2009-115, s. 11.

Class 52

Property acquired by a taxpayer after January 27, 2009 and before February 2011 that

  • (a) is general-purpose electronic data processing equipment and systems software for that equipment, including ancillary data processing equipment, but not including property that is principally or is used principally as

    • (i) electronic process control or monitor equipment,

    • (ii) electronic communications control equipment,

    • (iii) systems software for equipment referred to in paragraph (i) or (ii), or

    • (iv) data handling equipment (other than data handling equipment that is ancillary to general-purpose electronic data processing equipment);

  • (b) is situated in Canada;

  • (c) has not been used, or acquired for use, for any purpose whatever before it is acquired by the taxpayer; and

  • (d) is acquired by the taxpayer

    • (i) for use in a business carried on by the taxpayer in Canada or for the purpose of earning income from property situated in Canada, or

    • (ii) for lease by the taxpayer to a lessee for use by the lessee in a business carried on by the lessee in Canada or for the purpose of earning income from property situated in Canada.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/2009-126, s. 11;
  • SOR/2009-155, s. 1.