Income Tax Regulations — (a)
of the taxpayer, primarily for the purpose of storing and discharging electrical energy (I) including batteries, compressed air energy storage, flywheels, ancillary equipment (including control and conditioning equipment) and related structures, and (II) not including buildings, pumped hydroelectric storage, hydro electric dams and reservoirs, property used solely for backup electrical energy, batteries used in vehicles or other automotive equipment, property used to charge vehicles or other automotive equipment, fuel cell systems where the hydrogen is produced via steam reformation of methane and property otherwise included in Class 10 or 17, and (B) either (I) the electrical energy to be stored and discharged is generated from other property that is described in paragraph (c) or in any other subparagraph of this paragraph, or (II) meets the condition that the efficiency of the electrical energy storage system that includes the property – computed by reference to the quantity of electrical energy supplied to and discharged from the electrical energy storage system – is greater than 50%, and (xix) a pumped hydroelectric energy storage installation all or substantially all of the use of which by the taxpayer, or by a lessee of the taxpayer, is to store and discharge electrical energy including reversing turbines, eligible transmission equipment, dams, reservoirs and related structures, and that meets the condition in either subclause (d)(xviii)(B)(I) or (II) in this Class, but not including (A) property used solely for backup electrical energy, and (B) buildings, (xx) equipment all or substantially all of the use of which by the taxpayer, or by a lessee of the taxpayer, is to produce solid biofuel, including storage, materials handling and ash-handling equipment, but not including (A) equipment used to make wood chips, hog fuel or black liquor, (B) property that would otherwise be included in Class 17, (C) automotive vehicles, (D) buildings and other structures, and (E) pollution abatement equipment, (xxi) equipment used by the taxpayer, or by a lessee of the taxpayer, to dispense hydrogen for use in automotive equipment powered by hydrogen, including vaporization, compression, cooling and storage equipment, but not including (A) equipment used for the production or transmission of hydrogen, (B) equipment used for the transmission or distribution of electricity, (C) automotive vehicles, (D) auxiliary electrical generating equipment, and (E) buildings and other structures, or (xxii) equipment all or substantially all of the use of which by the taxpayer, or by a lessee of the taxpayer, is to produce hydrogen through electrolysis of water, including electrolysers, rectifiers and other ancillary electrical equipment, water treatment and conditioning equipment and equipment used for hydrogen compression and storage, but not including (A) equipment used for the transmission or distribution of hydrogen, (B) equipment used for the transmission or distribution of electricity, (C) automotive vehicles, (D) auxiliary electrical generating equipment, and (E) buildings and other structures, and (e) that (i) is situated in Canada, including property described in subparagraph (d)(v) or (xiv) that is installed in the exclusive economic zone of Canada, (ii) is (A) acquired by the taxpayer for use by the taxpayer for the purpose of gaining or producing income from a business carried on in Canada or from property situated in Canada, or (B) leased by the taxpayer to a lessee for the use by the lessee for the purpose of gaining or producing income from a business carried on in Canada or from property situated in Canada, and (iii) has not been used for any purpose before it was acquired by the taxpayer unless (A) the property was depreciable property that (I) was included in Class 34, 43.1 or 43.2 of the person from whom it was acquired, or (II) would have been included in Class 34, 43.1 or 43.2 of the person from whom it was acquired had the person