Ontario Current Cost Allowance


Notice to the reader: The Ontario Current Cost Allowance Deduction ceased to be in effect as of January 1, 2009. This deduction is not available for taxation years ending after December 31, 2008.

The Ontario Current Cost Adjustment (OCCA) deduction is an incentive to assist corporations with the costs involved in purchasing new pollution control equipment for use in Ontario.

The Benefit

The OCCA is a one-time deduction in the calculation of Ontario taxable income. The deduction is with respect to the eligible cost to the corporation of all eligible assets acquired by the corporation for the taxation year. The deduction is in addition to the capital cost allowance deductions.


An eligible asset is prescribed pollution control equipment acquired by the corporation after May 17, 1989. The eligible cost of the equipment is the capital cost of the equipment, restricted to $20 million of acquisitions for each taxation year.

How to Apply

The OCCA is a deduction in calculating Ontario taxable income. The amount of the OCCA is claimed on Line 661 of the tax return.

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