Income Tax Act — I-3.3 211.92
ible use percentage for a CCUS project for any period described in subparagraph (c)(i) or (ii) of the definition qualified CCUS project in subsection 127.44(1) is less than 10%, then for the purposes of applying subsections (4) and (5) (a) the actual eligible use percentage of the project for the relevant project period to which the period relates, and for each subsequent project period, is deemed to be nil; (b) the relevant project period for the particular recovery taxation year is deemed to include each subsequent project period; and (c) those subsections do not apply to a subsequent recovery taxation year in respect of the project. Development credits recovery amount (4) If the projected eligible use percentage of a CCUS project for the relevant project period in respect of a particular recovery taxation year exceeds the actual eligible use percentage of the CCUS project for that period by more than five percentage points, there shall be added to the tax otherwise payable under this Part for the particular recovery taxation year by a taxpayer that deducted a CCUS tax credit in respect of the CCUS project an amount equal to the amount determined by the formula A − B − C where A is the amount of the taxpayer’s cumulative CCUS development tax credit for the taxation year that includes the first day of commercial operations; B is the amount that would be determined for A if the projected eligible use percentage for the relevant project period were equal to its actual eligible use percentage; and C is the total of all amounts, each of which is an amount previously paid by the taxpayer as a tax under this Part in respect of the disposition or export of a property in relation to the project because of subsection (9), to the extent that the amount did not reduce the tax payable by the taxpayer under this subsection in a preceding taxation year. Refurbishment credits recovery amount (5) If the projected eligible use percentage of a CCUS project for the relevant project period in respect of a particular recovery taxation year exceeds the actual eligible use percentage of the CCUS project for that period by more than five percentage points, there shall be added to the tax otherwise payable under this Part for the particular recovery taxation year by a taxpayer that deducted a CCUS tax credit in respect of the CCUS project, an amount equal to the amount determined by the formula A − B − C where A is the total of all amounts, each of which is the amount that is the taxpayer’s CCUS refurbishment tax credit under subsection 127.44(5) for the year or a previous taxation year; B is the amount that would be determined for A if the projected eligible use percentage for the relevant project period were equal to its actual eligible use percentage; and C is the total of all amounts, each of which is an amount previously paid by the taxpayer as a tax under this Part in respect of the disposition or export of a property in relation to the project because of subsection (10), to the extent that the amount did not reduce the tax payable by the taxpayer under this subsection in a preceding taxation year. Extraordinary eligible use reduction (6) For the purposes of determining a taxpayer’s liability for tax under this Part for a taxation year, subsection (7) applies if (a) the actual eligible use percentage for a qualified CCUS project during a project period is significantly reduced due to extraordinary circumstances, for bona fide reasons outside the control of the taxpayer and each person or partnership that does not deal at arm’s length with the taxpayer; (b) the taxpayer requests in writing, on or before the taxpayer’s filing-due date for the year, that the Minister consider the potential application of this subsection and subsection (7); and (c) the Minister is satisfied that the taxpayer has taken all reasonable steps to attempt to rectify the extraordinary circumstances, and that it is appropriate, having regard to all the circumstances, to ap