Income Tax Act — I-3.3 127.1
Refundable investment tax credit 127.1 (1) Where a taxpayer (other than a person exempt from tax under section 149) files (a) with the taxpayer’s return of income (other than a return of income filed under subsection 70(2) or 104(23), paragraph 128(2)(f) or subsection 150(4)) for a taxation year, or (b) with a prescribed form amending a return referred to in paragraph 127.1(1)(a) a prescribed form containing prescribed information, the taxpayer is deemed to have paid on the taxpayer’s balance-due day for the year an amount on account of the taxpayer’s tax payable under this Part for the year equal to the lesser of (c) the taxpayer’s refundable investment tax credit for the year, and (d) the amount designated by the taxpayer in the prescribed form. Definitions (2) In this section, excluded corporation for a taxation year means a corporation that is, at any time in the year, (a) controlled directly or indirectly, in any manner whatever, by (i) one or more persons exempt from tax under this Part by virtue of section 149, (ii) Her Majesty in right of a province, a Canadian municipality or any other public authority, or (iii) any combination of persons each of whom is a person referred to in subparagraph (i) or (ii), or (b) related to any person referred to in paragraph (a); ( société exclue ) qualifying corporation , for a particular taxation year that ends in a calendar year, means a particular corporation that is a Canadian-controlled private corporation in the particular taxation year the taxable income of which for its immediately preceding taxation year  —  together with, if the particular corporation is associated in the particular taxation year with one or more other corporations (in this subsection referred to as “associated corporations”), the taxable income of each associated corporation for its last taxation year that ended in the preceding calendar year (determined before taking into consideration the specified future tax consequences for that last year)  —  does not exceed the qualifying income limit, if any, of the particular corporation for the particular taxation year; ( société admissible ) qualifying income limit of a corporation for a particular taxation year is the amount determined by the formula $500,000 × [($60 million − A) ÷ $60 million] where A is (a) nil, if $15 million is greater than or equal to the amount (in paragraph (b) referred to as the “taxable capital amount”) that is the total of the corporation’s taxable capital employed in Canada (within the meaning assigned by section 181.2 or 181.3) for its immediately preceding taxation year and the taxable capital employed in Canada (within the meaning assigned by section 181.2 or 181.3) of each associated corporation for the associated corporation’s last taxation year that ended in the last calendar year that ended before the end of the particular taxation year, and (b) in any other case, the lesser of $60 million and the amount by which the taxable capital amount exceeds $15 million; ( plafond de revenu admissible ) refundable investment tax credit of a taxpayer for a taxation year means, in the case of a taxpayer who is (a) a qualifying corporation for the year, (b) an individual other than a trust, or (c) a trust each beneficiary of which is a person referred to in paragraph (a) or (b), an amount equal to 40% of the amount, if any, by which (d) the total of all amounts included in computing the taxpayer’s investment tax credit at the end of the year (i) in respect of property (other than qualified small-business property) acquired, or a qualified expenditure (other than an expenditure in respect of which an amount is included under paragraph (f) in computing the taxpayer’s refundable investment tax credit for the year) incurred, by the taxpayer in the year, or (ii) because of paragraph (b) of the definition investment tax credit in subsection 127(9) in respect of a property (other than qualified small-business property) acquired or a qualified expendi