Income Tax Regulations — 1219
xpayer, or (xi) a cost attributable to the period of the construction, renovation or alteration of depreciable property, other than property described in Class 43.1 or 43.2 in Schedule II, that relates to (A) the construction, renovation or alteration of the property, except as provided by paragraph (1)(b), (f), (g) or (h), or (B) the ownership of land during the period, except as provided by paragraph (1)(b), (c) or (d). (3) For the purpose of paragraph (1)(g), test wind turbine means a fixed location device that is a wind energy conversion system that would, if this Part were read without reference to this section, be property included in Class 43.1 in Schedule II because of subparagraph (d)(v) of that Class, or in Class 43.2 in Schedule II because of paragraph (b) of that Class, in respect of which the Minister, in consultation with the Minister of Natural Resources, determines that (a) the device is installed as part of a wind farm project of the taxpayer at which the electrical energy produced from wind by the device, and by all other test wind turbines that are part of the project, does not exceed (i) one third of the project’s planned nameplate capacity if (A) the Minister of Natural Resources determines that the project’s planned nameplate capacity is limited from an engineering or scientific perspective, and (B) the project’s planned nameplate capacity does not exceed six megawatts, or (ii) 20% of the project’s planned nameplate capacity, in any other case; (b) the project does not share with any other project a point of interconnection to an electrical energy transmission or distribution system; (c) if the project does not have a point of interconnection to an electrical energy transmission or distribution system, the project has a point of interconnection to an electrical system (i) of the taxpayer (A) which system is more than 10 kilometres from any transmission system and from any distribution system, and (B) from which system at least 90% of the electrical energy produced by the project is used in a business carried on by the taxpayer, or (ii) of another person or partnership that deals at arm’s length with the taxpayer (A) which system is more than 10 kilometres from any transmission system and from any distribution system, and (B) from which system at least 90% of the electrical energy produced by the project is used in a business carried on by the other person or partnership; (d) the primary purpose for installing the device is to test the level of electrical energy produced by the device from wind at the place of installation; (e) no other test wind turbine is installed within 1500 metres of the device; and (f) no other wind energy conversion system is installed within 1500 metres of the device until the level of electrical energy produced from wind by the device has been tested for at least 120 calendar days. (4) For greater certainty, a Canadian Renewable and Conservation Expense includes an expense incurred by a taxpayer to acquire a fixed location device that is a wind energy conversion system only if the device is described in paragraph (1)(g). (5) A Canadian renewable and conservation expense does not include an expense incurred by a taxpayer at any time that is in respect of a geothermal project (a) that at that time is described in paragraph (1)(h); and (b) in respect of which the taxpayer is not at that time in compliance with the requirements of all environmental laws, by-laws and regulations of (i) Canada, (ii) a province or a municipality in Canada, or (iii) a municipal or public body performing a function of government in Canada. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/2000-327, s. 4; SOR/2005-266, s. 1; SOR/2006-117, s. 5; SOR/2007-116, s. 3; 2010, c. 25, s. 77; 2016, c. 12, s. 79; 2017, c. 33, s. 92