Clean energy and energy conservation equipment: eligible
Clean energy generation and conservation equipment in Classes 43.1 and 43.2 already had immediate expensing under Budget 2025. It stays fully deductible in year one and may also qualify for investment tax credits.
Examples of solar, storage and efficiency equipment
- rooftop solar and inverters
- battery storage systems
- geothermal and heat-pump systems
- LED lighting retrofits and efficient HVAC controls
Planning tip
Stack the deduction with any available clean technology ITC. The credit reduces the capital cost for CCA purposes, so run the numbers both ways.
CCA Class 43.1 / 43.2 · regular rate 30% declining balance · half-year rule normally applies in year one.
Calculate the deduction on solar, storage and efficiency equipment
Worked examples (Ontario)
| Purchase | Old year-one deduction | New year-one deduction | Tax reduction, small business rate | Tax reduction, general rate |
|---|---|---|---|---|
| $25,000 | $3,750 | $25,000 | $2,800 | $6,625 |
| $100,000 | $15,000 | $100,000 | $11,200 | $26,500 |
| $250,000 | $37,500 | $250,000 | $28,000 | $66,250 |
Clean energy and energy conservation equipment by province
- Clean energy and energy conservation equipment in Alberta
- Clean energy and energy conservation equipment in British Columbia
- Clean energy and energy conservation equipment in Saskatchewan
- Clean energy and energy conservation equipment in Manitoba
- Clean energy and energy conservation equipment in Ontario
- Clean energy and energy conservation equipment in Quebec
- Clean energy and energy conservation equipment in New Brunswick
- Clean energy and energy conservation equipment in Nova Scotia
- Clean energy and energy conservation equipment in Prince Edward Island
- Clean energy and energy conservation equipment in Newfoundland and Labrador
- Clean energy and energy conservation equipment in Yukon
- Clean energy and energy conservation equipment in Northwest Territories
- Clean energy and energy conservation equipment in Nunavut
Free: the Year-End Purchase Checklist (PDF)
One page. What qualifies, what does not, the 'available for use' trap, and the seven questions to ask your accountant before you buy. No spam, unsubscribe any time.
The Mega Deduction Year-End Playbook
Everything you need to walk into your accountant's office with a plan instead of a question. Built for owner-managed Canadian businesses that expect a profitable 2026.
- Excel purchase planner with every province's rates and every CCA class pre-loaded. Model up to 12 purchases, see the year-one deduction, tax reduction and 10-year comparison for each.
- The 41-page Playbook (PDF): eligibility by asset class, the exclusions, 'available for use' rules, financing vs. leasing, recapture risk, CCPC vs. sole proprietor, and worked examples for 12 industries.
- Accountant brief template (Word): a one-page memo you fill in and send so your accountant can confirm the plan in one email instead of a meeting.
- 30-day action plan for purchases that must be delivered and installed before your fiscal year-end.
$97$47 CAD one-time, instant download
Secure checkout by Stripe. Files delivered immediately after payment. Not tax advice; every plan should be confirmed by your accountant.