Capital cost allowance

From eg

A capital cost allowance or fixed asset depreciation allowance or depreciation writeoff is a percentage of the acquisition cost of a capital asset that counts as a tax deduction each year. The remaining undepreciated value is called the book value. See six styles of capital for an approach to estimating the value of assets.

Typically, the depreciation rate matches the lifecycle of the asset, but in some regimes, notably Canada's, other policy concerns drive numbers. For instance, software, film, telecom gear and infrastructure suitable for sustainable development has received more favourable treatment.

It was created for, and is most applicable to, expensive physical infrastructural capital. It has been inappropriately applied to other capital asset types such as instructional capital, which almost invariably leads to scams, as there are few valuation standards for any non-physical asset, in part because they tend to be unique and incomparable to others, even other "similar" assets. There is little choice but to assume price as value, subjecting the valuation to various manipulations.