Income Tax Regulations — 1205
section 66(10.2) of the Act, (C) an amount referred to in subparagraph 66.2(5)(a)(iii) of the Act, (D) an amount that, by virtue of subparagraph 66.2(5)(a)(iv) of the Act, was a Canadian development expense, if such amount was an expense referred to in clause (A), (B) or (C) that was incurred by a partnership referred to in that subparagraph, or (E) an amount that, by virtue of subparagraph 66.2(5)(a)(v) of the Act, was a Canadian development expense, if such amount was an expense referred to in clause (A), (B) or (C) that the taxpayer incurred pursuant to an agreement referred to in that subparagraph, (iv) the stated percentage of the capital cost to the taxpayer of any processing property acquired by the taxpayer principally for the purpose of (A) processing in Canada (I) ore, other than iron ore or tar sands ore, from a qualified resource to any stage that is not beyond the prime metal stage or its equivalent, (II) iron ore from a qualified resource to any stage that is not beyond the pellet stage or its equivalent, or (III) tar sands ore from a qualified resource to any stage that is not beyond the crude oil stage or its equivalent, or (B) processing in Canada (I) ore, other than iron ore or tar sands ore, from an exporting resource beyond the furthest stage to which such ore or similar ore from that resource was ordinarily processed in Canada before such acquisition but not beyond the prime metal stage or its equivalent, (II) iron ore from an exporting resource beyond the furthest stage to which such ore or similar ore from that resource was ordinarily processed in Canada before such acquisition but not beyond the pellet stage or its equivalent, or (III) tar sands ore from an exporting resource beyond the furthest stage to which such ore or similar ore from that resource was ordinarily processed in Canada before such acquisition but not beyond the crude oil stage or its equivalent, (v) where the taxpayer is a corporation that incurred a Canadian oil and gas exploration expense in respect of conventional lands in a calendar year after 1980 and before 1984, the specified percentage for that year of such expense to the extent that it is not an amount or expense referred to in clause (ii)(A), (B) or (F) or an expense that would be referred to in clause (ii)(C) or (D) if the references in those clauses to “clause (A), (B), (E), (F), (G) or (H)” were read as “clause (A), (B) or (F)”, or (vi) where the taxpayer is a corporation, (A) the specified percentage in respect of a Canadian oil and gas exploration expense in respect of non-conventional lands incurred in a calendar year after 1980 and before 1985 to the extent that it is not an amount or expense referred to in clause (ii)(A), (B) or (F) or an expense that would be referred to in clause (ii)(C) or (D) if the references in those clauses to “clause (A), (B), (E), (F), (G) or (H)” were read as “clause (A), (B) or (F)”, (B) the stated percentage of a Canadian development expense incurred after 1980 in respect of a qualified tertiary oil recovery project of the taxpayer to the extent that such expense is not (I) an amount or expense described in any of clauses (iii)(A) to (E), (II) an amount that was a Canadian exploration and development overhead expense of the taxpayer, or (III) an eligible expense within the meaning of the Canadian Exploration and Development Incentive Program Act in respect of which the taxpayer, a partnership of which the taxpayer was a member, a principal-business corporation of which the taxpayer was a shareholder or a joint exploration corporation of which the taxpayer was a shareholder corporation has received, is entitled to receive or may reasonably be expected to receive at any time an incentive under that Act, (B.1) the stated percentage of a Canadian exploration expense incurred after 1981 in respect of a qualified tertiary oil recovery project of the taxpayer that (I) would be referred to in subparagraph 66.1(6)(a)(ii) or (ii.1) of the Act if sub