Can a Participant deduct any costs associated with the purchase and installation of the renewable energy property?
Generally, costs associated with the purchase and installation of renewable energy property are considered as capital costs of depreciable property, which are deducted over a period of several years, based on a prescribed percentage.This deduction is referred to as capital cost allowance (CCA). Generally, amounts paid for legal, engineering, installation, and other fees that relate to the acquisition of the renewable energy property, would be included as part of the capital cost of the property. In general, a Participant would include the capital costs of a renewable energy property in Class 43.1 or 43.2 for CCA purposes, provided that the property meets the requirements of these Classes. These classes provide an accelerated CCA rate for specified clean energy generation equipment, as discussed in Question 6 below. The renewable energy property included in these Classes is generally the same with the exception that renewable energy property acquired after February 22, 2005 and before 2
