Income Tax Act — I-3.3 127.48
le hydrocarbons, with carbon dioxide captured using a CCUS process. ( méthode admissible ) eligible power purchase agreement means an agreement or other arrangement in writing that (a) allows, or will allow, a taxpayer to purchase electricity from an eligible electricity generation source (including incremental nameplate capacity) that (i) first commenced electricity generation on or after both (A) November 3, 2022, and (B) the earlier of the day that is (I) 24 months before the taxpayer’s first clean hydrogen project plan is filed with the Minister of Natural Resources, and (II) 36 months before the day on which hydrogen is first produced by the relevant clean hydrogen project of the taxpayer, and (ii) is located in (A) the same province as the clean hydrogen project and is connected to the electricity grid of that province, (B) the exclusive economic zone of Canada and is directly connected to the grid of the province in which the project is located, or (C) another province that has a provincial grid that is directly connected to the grid of the province in which the project is located, if the taxpayer has arranged for the necessary interprovincial transmission; (b) grants, or will grant, the taxpayer the sole and exclusive right to the environmental attributes associated with the electricity; and (c) is entered into by the taxpayer for the primary purpose of operating the taxpayer’s clean hydrogen project during all or any portion of the first 20 years of the project’s operations. ( entente pour l’achat d’électricité admissible ) eligible renewable hydrocarbon , in respect of a taxpayer, means a substance (a) that is produced from non-fossil carbon; (b) in respect of which a CFR carbon intensity can be determined under the Clean Fuel Regulations ; (c) that is included in the Clean Hydrogen Investment Tax Credit – Carbon Intensity Modelling Guidance Document published by the Government of Canada at the time that the taxpayer files its most recent clean hydrogen project plan with the Minister of Natural Resources; (d) that is sourced from a facility that first commenced production of the substance on or after both (i) November 3, 2022, and (ii) the earlier of the day that is (A) 24 months before the taxpayer’s first clean hydrogen project plan is filed with the Minister of Natural Resources, and (B) 36 months before the day on which hydrogen is first produced by the relevant clean hydrogen project of the taxpayer; (e) that, if acquired by the taxpayer under an agreement, the agreement grants, or will grant, the taxpayer the sole and exclusive right to the environmental attributes associated with the substance; and (f) that is acquired or produced by the taxpayer for the sole purpose of operating the clean hydrogen project during all or any portion of the first 20 years of the project’s operations. ( hydrocarbure renouvelable admissible ) excluded property means property that is (a) included in Class 57 or 58 of Schedule II to the Income Tax Regulations ; (b) equipment used for the off-site transmission, transportation or distribution of hydrogen or ammonia; (c) equipment used to prepare hydrogen for transport, including liquefaction equipment and equipment used to compress hydrogen to levels suitable for transportation; (d) an automotive vehicle or related refuelling or charging equipment; (e) a building or other structure; (f) construction equipment, furniture or office equipment; or (g) equipment used for off-site storage. ( bien exclu ) expected carbon intensity means the carbon intensity of hydrogen that is expected to be produced by a particular clean hydrogen project of a taxpayer, as documented in the taxpayer’s clean hydrogen project plan in respect of the project. ( intensité carbonique attendue ) first day of the compliance period means, in respect of a clean hydrogen project of a taxpayer, (a) unless paragraph (b) or (c) applies, the particular day that is 120 days after the day on which hydrogen is first produced