Canadian Renewable Conservation Expenses: CRCE
The Canadian Renewable Conservation Expenses (CRCE) is a category of fully deductible expenditures associated with the start-up of renewable energy and energy conservation projects for which at least 50% of the capital costs of the property would be described in Class 43.1 and 43.2.
Eligible Expenses
- Related soft costs for design, engineering and commissioning;
- Other services required to make the system operational
- Costs of pre-feasibility and feasibility studies;
- Costs related to determining the extent, location and quantity of energy resources;
- Costs related to negotiations and site approval;
- Certain site preparation costs; and
- Service connection costs
These expenditures may be deducted in full in the year they are incurred or can be carried forward indefinitely for deduction in future years. The CRCE expenditures are also eligible for flow-through share treatment. Meaning, the corporation my renounce the CRCE expenditures that it has incurred to a person who acquires flow-through shares from the corporation. This allows shareholders to clam deductions as if they had incurred the expenditures directly. This is particularly helpful to corporations that are not yet profitable.
Year | Business Income ($) | CCA Deductions ($) | Taxes Payable ($) | Savings ($) |
|---|---|---|---|---|
1 | $300,000.00 | $79,500.00 | $- | |
1 | $300,000.00 | $137,500.00 | $43,062.50 | $36,437.50 |
Visit https://www.nrcan.gc.ca/sites/www.nrcan.gc.ca/files/energy/pdf/CRCE%20Technical%20Guide%202014_en.pdf for further details on CRCE Expenditures