Income Tax Regulations — (a)
Property acquired after April 26, 1965 and before 1971 (a) that would otherwise be included in Class 2, 3, 6 or 8 and that (i) was acquired primarily for the purpose of preventing, reducing or eliminating pollution of (A) any of the inland, coastal or boundary waters of Canada, or (B) any lake, river, stream, watercourse, pond, swamp or well in Canada, by industrial waste, refuse or sewage created by operations in the course of carrying on a business by the taxpayer or that would be created by such operations if the property had not been acquired and used, and (ii) had not been used for any purpose whatever before it was acquired by the taxpayer, but not including property acquired for use in the production of by-products or the recovery of materials unless the by-products are produced from, or the materials are recovered from, materials that after April 26, 1965, (iii) were being discarded as waste by the taxpayer, or (iv) were commonly being discarded as waste by other taxpayers who carried on operations of a type similar to the operations carried on by the taxpayer, and property acquired before 1999 (b) that would otherwise be included in another class in this Schedule (i) that has not been included by the taxpayer in any other class, (ii) that had not been used for any purpose whatever before it was acquired by the taxpayer, (iii) that was acquired by the taxpayer after 1970 primarily for the purpose of preventing, reducing or eliminating pollution of (A) any of the inland, coastal or boundary waters of Canada, or (B) any lake, river, stream, watercourse, pond, swamp or well in Canada, that is caused, or that, if the property had not been acquired and used, would be caused by (C) operations carried on by the taxpayer at a site in Canada at which operations have been carried on by him from a time that is before 1974, (D) the operation in Canada of a building or plant by the taxpayer, the construction of which was either commenced before 1974 or commenced under an agreement in writing entered into by him before 1974, or (E) the operation of transportation or other movable equipment that has been operated by the taxpayer in Canada (including any of the inland, coastal or boundary waters of Canada) from a time that is before 1974, or that was acquired by him after May 8, 1972, that would otherwise have been property referred to in this subparagraph except that (F) it was acquired (I) for the purpose of gaining or producing income from a business by a taxpayer whose business includes the preventing, reducing or eliminating of pollution of a kind referred to in this subparagraph that is caused or that otherwise would be caused primarily by operations referred to in clause (C), (D) or (E) carried on by other taxpayers (not including persons referred to in section 149 of the Act), and (II) to be used in a business referred to in subclause (I) in the preventing, reducing or eliminating of pollution of a kind referred to in this subparagraph, or (G) it was acquired (I) for the purpose of gaining or producing income from a property by a corporation whose principal business is the purchasing of conditional sales contracts, accounts receivable, bills of sale, chattel mortgages, bills of exchange or other obligations representing part or all of the sale price of merchandise or services, the lending of money, or the leasing of property, or any combination thereof, and (II) to be leased to a taxpayer (other than a person referred to in section 149 of the Act) to be used by him, in an operation referred to in clause (C), (D), (E) or (F), in the preventing, reducing or eliminating of pollution of a kind referred to in this subparagraph, and (iv) that has, upon application by the taxpayer to the Minister of the Environment, been accepted by that Minister as property the primary use of which is to be the preventing, reducing or eliminating of pollution of a kind referred to in subparagraph (iii), and for the purposes of paragraphs (a) and (b)