The 2007 federal budget resulted in changes to the rates of capital cost allowance for certain depreciable asset classes to better align with their useful life. It is anticipated that the provinces will change their rates as well.
| Â Asset |
Previous Rate |
New Rate |
| Â Buildings used for manufacturing and processing |
4% |
 10% |
| Â Other non-residential buildings |
4%Â |
 6% |
| Â Computer equipment |
 45% |
 55% |
These new rates apply to assets acquired after March 19, 2007.
There will also be an increase from 30% to 50% on a straight-line basis of capital cost allowance for manufacturing and processing equipment acquired between March 19, 2007 and December 31, 2008.