Income Tax Act — I-3.3 (a)
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 equipment described in paragraph (a) within a CCUS process as part of (i) an electrical system, (ii) a fuel supply system, (iii) a liquid delivery and distribution system, (iv) a cooling system, (v) a process material storage and handling and distribution system, (vi) a process venting system, (vii) a process waste management system, or (viii) a utility air or nitrogen distribution system; (c) property that is (i) used as part of a control, monitoring or safety system solely to support the equipment described in paragraphs (a) or (b), (ii) a building or other structure all or substantially all of which is used, or to be used, for the installation or operation of equipment described in paragraph (a), (b) or subparagraph (i), or (iii) incorporated into another property that would not otherwise be described in paragraph (a) or (b) or subparagraphs (i) and (ii) if the incorporation causes the other property to satisfy the description in paragraph (a) or (b) or subparagraph (i) or (ii); or (d) equipment used solely to refurbish property described in paragraphs (a) or (b) or subparagraphs (c)(i) and (ii) that is part of the CCUS project of the taxpayer. ( matériel à double usage )