Commercial vehicles (vans, pickups, work trucks): likely eligible

Motor vehicles are Class 10 (30%). Vehicles that are not 'passenger vehicles' under the Income Tax Act, such as cargo vans and work pickups, are expected to qualify for immediate expensing. Passenger vehicles in Class 10.1 (over the cost cap) are excluded.

The government has said 'certain vehicles in Classes 10 and 10.1' are excluded. Passenger vehicles over the Class 10.1 cost limit are the clearest exclusion. Cargo vans, pickups used primarily for business and vehicles that are not passenger vehicles are expected to qualify, but confirm the final legislation with your accountant.

Examples of cargo vans, pickups and work trucks

cargo vans for trades and couriers
pickups used more than 50% for hauling goods or equipment
service trucks with mounted equipment

Planning tip

The passenger-vehicle definition turns on seating, cargo use and business-use percentage in the year of purchase. Document the business use from day one.

CCA Class 10 · regular rate 30% declining balance · half-year rule normally applies in year one.

Calculate the deduction on cargo vans, pickups and work trucks

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

Commercial vehicles (vans, pickups, work trucks) by province

Free: the Year-End Purchase Checklist (PDF)

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Year-end planning kit

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.

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