Income Tax Act — I-3.3 66.1
Amount to be included in income 66.1 (1) There shall be included in computing the amount referred to in paragraph 59(3.2)(b) in respect of a taxpayer for a taxation year the amount, if any, by which (a) the total of all amounts referred to in the descriptions of F to M in the definition cumulative Canadian exploration expense in subsection 66.1(6) that are deducted in computing the taxpayer’s cumulative Canadian exploration expense at the end of the year exceeds the total of (b) all amounts referred to in the descriptions of A to E.1 in the definition cumulative Canadian exploration expense in subsection 66.1(6) that are included in computing the taxpayer’s cumulative Canadian exploration expense at the end of the year, and (c) the total determined under subparagraph 66.7(12.1)(a)(i) in respect of the taxpayer for the year. Deduction for certain principal-business corporations (2) In computing the income for a taxation year of a principal-business corporation (other than a corporation that would not be a principal-business corporation if the definition principal-business corporation in subsection 66(15) were read without reference to paragraphs (h) and (i) of that definition), there may be deducted any amount that the corporation claims not exceeding the lesser of (a) the total of (i) the amount, if any, by which its cumulative Canadian exploration expense at the end of the year exceeds the amount, if any, designated by it for the year under subsection 66(14.1), and (ii) the amount, if any, by which (A) the total determined under subparagraph 66.7(12.1)(a)(i) in respect of the corporation for the year exceeds (B) the amount that would be determined under subsection 66.1(1) in respect of the corporation for the year, if that subsection were read without reference to paragraph (c) thereof, and (b) the amount, if any, by which (i) the amount that would be its income for the year if no deduction (other than a prescribed deduction) were allowed under this subsection or section 65 exceeds (ii) the total of all amounts each of which is an amount deducted by the corporation under section 112 or 113 in computing its taxable income for the year. Expenses of other taxpayer (3) In computing the income for a taxation year of a taxpayer that is not a principal-business corporation, or that is a corporation that would not be a principal-business corporation if the definition principal-business corporation in subsection 66(15) were read without reference to paragraphs (h) and (i) of that definition, there may be deducted such amount as the taxpayer claims not exceeding the total of (a) the amount, if any, by which the taxpayer’s cumulative Canadian exploration expense at the end of the year exceeds the amount, if any, designated by the taxpayer for the year under subsection 66(14.1), and (b) the amount, if any, by which (i) the total determined under subparagraph 66.7(12.1)(a)(i) in respect of the taxpayer for the year exceeds (ii) the amount that would, but for paragraph 66.1(1)(c), be the amount determined under subsection 66.1(1) in respect of the taxpayer for the year. Definitions (6) In this section, bitumen mine development project , of a taxpayer, means an undertaking for the sole purpose of developing a new mine to extract and process tar sands from a mineral resource of the taxpayer to produce bitumen or a similar product; ( projet de mise en valeur d’une mine de bitume ) bitumen upgrading development project , of a taxpayer, means an undertaking for the sole purpose of constructing an upgrading facility to process bitumen or a similar feedstock (all or substantially all of which is from a mineral resource of the taxpayer) from a new mine to the crude oil stage or its equivalent; ( projet de valorisation du bitume ) Canadian exploration expense of a taxpayer means any expense incurred after May 6, 1974 that is (a) any expense incurred by the taxpayer (other than an expense incurred in drilling or completing an oil or gas well or in b