CRA confirms that expansions of non-residential buildings can qualify for enhanced CCA irrespective of their size

Canadian non-residential buildings acquired after the 2007 Budget date generally are eligible for enhanced capital cost allowance rates.  CRA has confirmed that where a post-2007 addition is made to a non-residential building which itself does not qualify for the enhanced CCA (e.g., because a timely election was not made), the cost of the addition generally will qualify for the enhanced CCA irrespective of the quantum of the building expansion (provided that a timely election is made for the year of the addition).  This is based on Reg. 1102(24), which deems "an addition to or an alteration of" the building to be a separate building.

This interpretation would have been more interesting if there instead were substantial repairs to the building without any area expansion.

Neal Armstrong.  Summary of 10 June 2013 T.I. 2013-0489101E5 F under Reg. 1101(5b.1).