Income Tax Act — I-3.3 127.44
escribed 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 ) eligible use means (a) the storage of captured carbon in dedicated geological storage; or (b) the use of captured carbon in producing concrete in Canada or the United States using a qualified concrete storage process. ( utilisation admissible ) excluded CCUS equipment , in respect of a CCUS project of a taxpayer, means equipment that (a) is expected to be used in the production of hydrogen and would be required to produce hydrogen even if no CCUS process was applied by the taxpayer to produce the hydrogen; (b) is expected to be used for (i) natural gas processing, or (ii) acid gas injection; or (c) is oxygen production equipment. ( matériel de CUSC exclu ) first day of commercial operations means the day that is 120 days after the day on which captured carbon dioxide is first delivered to a carbon transportation, carbon storage or carbon use system for the purpose of storage or use on an ongoing operational basis. ( premier jour des activités commerciales ) ineligible use means (a) the emission of captured carbon into the atmosphere, other than (i) for the purposes of system integrity or safety, or (ii) incidental emission made in the ordinary course of operations; (b) the storage or use of captured carbon for enhanced oil recovery; and (c) any other storage or use that is not an eligible use. ( utilisation non admissible ) non-government assistance has the same meaning as in subsection 127(9). ( aide non gouvernementale ) preliminary CCUS work activity means an activity that is preliminary to the acquisition, construction, fabrication or installation by or on behalf of a taxpayer of property that is described in Class 57 or 58 of Schedule II to the Income Tax Regulations or that is dual-use equipment in respect of the taxpayer’s CCUS project including, but not limited to, a preliminary activity that is (a) obtaining permits or regulatory approvals; (b) performing front-end design or engineering work, including front-end engineering design studies (or equivalent studies as determined by the Minister of Natural Resources) but excluding detailed design or engineering work in relation to specific property included in Class 57 or Class 58; (c) conducting feasibility studies or pre-feasibility studies (or equivalent studies as determined by the Minister of Natural Resources); (d) conducting environmental assessments; or (e) clearing or excavating land, except excavation directly related to the installation of property that is described in Class 57 or 58 of Schedule II to the Income Tax Regulations or that is dual-use equipment. ( travaux préliminaires de CUSC ) pro