Income Tax Act — I-3.3 127.44
Definitions 127.44 (1) The following definitions apply in this section, Part XII.7 and in Schedule II to the Income Tax Regulations . captured carbon means captured carbon dioxide that (a) would otherwise be released into the atmosphere; or (b) is captured directly from the ambient air. ( carbone capté ) CCUS process means the process of carbon capture, utilization and storage that includes the (a) capture of carbon dioxide (i) that would otherwise be released into the atmosphere, or (ii) directly from the ambient air; and (b) storage or use of the captured carbon. ( processus de CUSC ) CCUS project means a project that is intended to support a CCUS process by (a) capturing carbon dioxide (i) that would otherwise be released into the atmosphere, or (ii) directly from the ambient air; (b) transporting captured carbon; or (c) storing or using captured carbon. ( projet de CUSC ) CCUS tax credit means an amount deemed under subsection (2) to have been paid by a taxpayer on account of its tax payable under this Part for the year. ( crédit d’impôt pour le CUSC ) dedicated geological storage means a geological formation that is (a) located in a designated jurisdiction; (b) capable of permanently storing captured carbon; (c) authorized and regulated for the storage of captured carbon under the laws of the designated jurisdiction; and (d) a formation in which no captured carbon is used for enhanced oil recovery.‍ ( stockage géologique dédié ) designated jurisdiction means (a) the provinces of British Columbia, Saskatchewan and Alberta; and (b) any other jurisdiction within Canada (including the exclusive economic zone of Canada) or the United States for which a designation by the Minister of the Environment under subsection (13) is in effect. ( juridiction désignée ) dual-use equipment means property, other than property described in Class 57 or 58 of Schedule II to the Income Tax Regulations , that is part of a CCUS project of a taxpayer that is described in any of the following paragraphs (and, in the case of property acquired before the first day of commercial operations of the CCUS project, that is verified by the Minister of Natural Resources as being described in any of the following paragraphs): (a) equipment that is not used for natural gas processing or acid gas injection, and that (i) generates electrical energy, heat energy or a combination of electrical and heat energy, if more than 50% of either the electrical energy or heat energy that is expected to be produced over the total CCUS project review period, based on the most recent project plan, is expected (not including equipment that supports the CCUS project indirectly by way of an electrical utility grid) to directly support (A) a qualified CCUS project, unless the equipment uses fossil fuels and emits carbon dioxide that is not subject to capture by a qualified CCUS project, or (B) a qualified clean hydrogen project as defined in subsection 127.48(1), unless the equipment uses fossil fuels and emits carbon dioxide that is not subject to capture by a qualified CCUS project, (ii) delivers, collects, recovers, treats or recirculates water, or a combination of any of those activities, in support of a qualified CCUS project, (iii) is equipment that directly transmits electrical energy from a system described in subparagraph (i) to a qualified CCUS project and more than 50% of the electrical energy to be transmitted by the equipment over the total CCUS project review period, based on the most recent project plan, is expected to support the qualified CCUS project or a qualified clean hydrogen project as defined in subsection 127.48(1), or (iv) is equipment that distributes electrical or heat energy; (b) equipment that is physically and functionally integrated with the equipment described in paragraph (a) (for greater certainty, excluding construction equipment, furniture, office equipment and vehicles) and that is ancillary equipment used solely to support the functioning of