How Long Do You Depreciate HVAC in Canada? | CCA Guide 2025
How Long Do You Depreciate HVAC in Canada? | CCA Guide 2025 So, you’re asking: “How long does it take to depreciate an HVAC system in Canada?” Here’s the truth: Unlike the U.S., Canada doesn’t assign HVAC a fixed year schedule. Instead, the Canada Revenue Agency (CRA) uses Capital Cost Allowance (CCA) classes, each with its own depreciation rate. HVAC Depreciation by Class (CCA) Class 1 — Permanent HVAC in Buildings Treated as part of the building. Depreciated at 4% declining balance. Applies to most residential and commercial installations. Class 13 — Leasehold Improvements HVAC upgrades in rented properties. Straight-line depreciation over the lease term (max 40 years). Class 8 — Portable HVAC Equipment Movable/temporary units. Depreciated at 20% declining balance. Class 43.1 / 43.2 — Energy-Efficient HVAC High-efficiency or renewable-energy systems may qualify here. Accelerated depreciation rates of 30%–50%. How Long It Really...