HVAC Bonus Depreciation in Canada 2025 | Accelerated CCA Explained
HVAC Bonus Depreciation in Canada 2025 | Accelerated CCA Explained So, you’re asking: “Does Canada offer bonus depreciation for HVAC systems in 2025, like the U.S. does?” Here’s the truth: Canada doesn’t have a “bonus depreciation” system like the U.S. Instead, the Canada Revenue Agency (CRA) uses the Capital Cost Allowance (CCA) system — but there are accelerated write-off options that act in a similar way. Accelerated Depreciation Options for HVAC in Canada Accelerated Investment Incentive (AII) Introduced in 2018. Allows businesses to claim up to 3x the normal first-year CCA deduction. Applies to most HVAC classes (Class 1, 8, 13, 43.1/43.2). Clean Energy Classes (43.1 / 43.2) High-efficiency HVAC, geothermal, and renewable systems may qualify. Depreciated at accelerated rates of 30% (Class 43.1) or 50% (Class 43.2). Provincial Incentives Some provinces, like Québec, Ontario, and B.C., offer additional rebates and incentives for energy-efficient...