On February 27, 2018, Finance Minister Bill Morneau tabled in the House of Commons the Liberal Government’s third budget, Equality + Growth = A Strong Middle Class (“Budget 2018”).  Budget 2018 proposes to extend eligibility for accelerated capital allowance in Class 43.2 by five years so that it would be available for property acquired before 2025. Generally, investments in specified clean energy generation and conservation equipment may qualify for accelerated capital cost allowance rates by being included in either Class 43.1 (30% on a declining balance basis) or Class 43.2 (50% on a declining balance basis). The eligibility criteria for these two capital cost allowance classes are generally the same, except that Class 43.2 has a higher efficiency standard for cogeneration systems that use fossil fuels than Class 43.1. Providing accelerated capital cost allowance is intended to encourage investment in specified clean energy generation and energy efficiency equipment that will contribute to a reduction in emissions of greenhouse gases and air pollutants.  For a discussion of these tax measures as well as others in Budget 2018, please see McCarthy Tétrault’s Budget 2018 Commentary