Accelerated capital cost analysis

The Chemistry Industry Association of Canada (CIAC) is advocating to Finance Canada that it adopt a temporary 100 per cent ACCA to be applied to value-add resources manufacturing for a minimum period of seven years or a full business cycle. CIAC has contracted this short assessment (see Appendix) to calculate the “benefit/cost” of this measure for both government and chemistry firms, compared to the current 50 per cent ACCA which was put in place for ten years (Budget 2015) and which applies to all Class 43 manufacturing and processing equipment. The example used is an investment of $2 billion, with $1 billion consisting of eligible Class 43 machinery and equipment.