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Income Tax Regulations (C.R.C., c. 945)

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Regulations are current to 2024-02-06 and last amended on 2024-02-02. Previous Versions

AMENDMENTS NOT IN FORCE

  • — 2022, c. 10, ss. 44(1), (5), (9), (11)

      • 44 (1) Subparagraphs (c)(i) and (ii) of Class 43.1 in Schedule II to the Regulations are replaced by the following:

        • (i) part of a system that

          • (A) is used by the taxpayer, or by a lessee of the taxpayer, to generate electrical energy, or both electrical and heat energy, using only fuel that is eligible waste fuel, fossil fuel, producer gas, spent pulping liquor or any combination of those fuels,

          • (B) if the system is rated to generate more than three megawatts of electrical energy, meets the following condition on an annual basis:

            A ≥ (2 × B + C)/(D + E/3412)

            where

            A
            is 11,000 BTU per kilowatt-hour,
            B
            is the energy content of fossil fuel other than solution gas (expressed as the higher heating value of the fuel) consumed by the system in BTU,
            C
            is the energy content of the eligible waste fuel, producer gas and spent pulping liquor (expressed as the higher heating value of the fuel) consumed by the system in BTU,
            D
            is the gross electrical energy produced by the system in kilowatt-hours, and
            E
            is the net useful energy in the form of heat exported from the system to a thermal host in BTU, and
          • (C) uses fuel of which no more than 25% of the energy content (expressed as the higher heating value of the fuel) is from fossil fuel, as determined on an annual basis, or

      • (5) Subparagraph (d)(ix) of Class 43.1 in Schedule II to the Regulations is replaced by the following:

        • (ix) equipment that

          • (A) is used by the taxpayer, or by a lessee of the taxpayer, for the sole purpose of generating heat energy, not using any fuel other than eligible waste fuel, fossil fuel, producer gas or a combination of those fuels,

          • (B) uses fuel of which no more than 25% of the energy content (expressed as the higher heating value of the fuel) is from fossil fuel, as determined on an annual basis,

          • (C) may include

            • (I) fuel handling equipment used to upgrade the combustible portion of the fuel,

            • (II) control, feedwater and condensate systems, and

            • (III) other ancillary equipment, and

          • (D) does not include

            • (I) equipment used for the purpose of producing heat energy to operate electrical generating equipment,

            • (II) buildings or other structures,

            • (III) heat rejection equipment (such as condensers and cooling water systems),

            • (IV) fuel storage facilities,

            • (V) other fuel handling equipment, and

            • (VI) property otherwise included in Class 10 or 17,

      • (9) Subparagraph (d)(xvi) of Class 43.1 in Schedule II to the Regulations is replaced by the following:

        • (xvi) equipment that

          • (A) is used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of generating producer gas (other than producer gas that is to be converted into liquid fuels or chemicals),

          • (B) uses feedstock of which no more than 25% of the energy content (expressed as the higher heating value of the feedstock) is from fossil fuel, as determined on an annual basis,

          • (C) may include

            • (I) related piping (including fans and compressors),

            • (II) air separation equipment,

            • (III) storage equipment,

            • (IV) equipment used for drying or shredding feedstock,

            • (V) ash-handling equipment,

            • (VI) equipment used to upgrade the producer gas into biomethane, and

            • (VII) equipment used to remove non-combustibles and contaminants from the producer gas, and

          • (D) does not include

            • (I) buildings or other structures,

            • (II) heat rejection equipment (such as condensers and cooling water systems),

            • (III) equipment used to convert producer gas into liquid fuels or chemicals, and

            • (IV) property otherwise included in Class 10 or 17,

      • (11) Subsections (1), (5) and (9) apply in respect of property of a taxpayer that becomes available for use by the taxpayer after 2024.

  • — 2022, c. 10, s. 45

      • 45 (1) Paragraph (a) of Class 43.2 in Schedule II to the Regulations is replaced by the following:

        • (a) otherwise than because of paragraph (d) of that Class; or

      • (2) Subparagraph (b)(i) of Class 43.2 in Schedule II to the Regulations is repealed.

      • (3) Subsections (1) and (2) apply in respect of property of a taxpayer that becomes available for use by the taxpayer after 2024.

  • — SOR/2024-9, s. 1

    • 1 Section 7300 of the Income Tax RegulationsFootnote 1 is amended by striking out “or” at the end of paragraph (c.1), by adding “or” at the end of paragraph (d) and by adding the following after paragraph (d):

      • (e) an amount that is a non-repayable contribution in respect of battery cell or battery module production in Canada and that is paid under the terms of

        • (i) the special contribution agreement of May 5, 2023 between the Government of Canada and 1000511515 Ontario Inc., or

        • (ii) the special contribution agreement of July 5, 2023 between the Government of Canada and NextStar Energy Inc.


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