The federal Budget tabled on June 6, 2011 included no changes to the income tax measures originally announced in the Budget on March 22, 2011.
Assets described in Class 29 are eligible for capital cost allowance at a rate of 50% on a straight-line basis (subject to the “half-year rule”). These assets are machinery and equipment acquired before 2012 primarily for use in Canada for the manufacturing or processing of goods for sale or lease. The Budget extends this incentive for eligible machinery and equipment acquired before 2014. Such machinery and equipment acquired after 2013 will be included in Class 43,I and the 30% declining balance rate will apply.