Income Tax Act — I-3.3 127
r acquired a particular property from a person or partnership in a taxation year of the taxpayer or in any of the 10 preceding taxation years, (b) the cost, or a portion of the cost, of the particular property was a qualified expenditure, or would if this Act were read without reference to subsection (26) be a qualified expenditure, to the taxpayer, (c) the cost, or the portion of the cost, of the particular property is included, or would if this Act were read without reference to subsection (26) be included, in an amount, a percentage of which can reasonably be considered to be included in computing the taxpayer’s investment tax credit at the end of the taxation year, and (d) in the year and after February 23, 1998, the taxpayer converts to commercial use, or disposes of without having previously converted to commercial use, the particular property or another property that incorporates the particular property, there shall be added to the taxpayer’s tax otherwise payable under this Part for the year the lesser of (e) the amount that can reasonably be considered to be included in the taxpayer’s investment tax credit at the end of any taxation year, or that would be so included if this Act were read without reference to subsection (26), in respect of the particular property, and (f) the amount that is the percentage — that is the sum of each percentage described in paragraph (c) that has been applied to compute the taxpayer’s investment tax credit in respect of the particular property — of (i) in the case where the particular property or the other property is disposed of to a person who deals at arm’s length with the taxpayer, (A) the proceeds of disposition of the property, if the property (I) is the particular property and is neither first term shared-use equipment nor second term shared-use equipment, or (II) is the other property, (B) 25% of the proceeds of disposition of the property, if the property is the particular property, is first term shared-use equipment and is not second term shared-use equipment, and (C) 50% of the proceeds of disposition of the property, if the property is the particular property and is second term shared-use equipment, and (ii) in the case where the particular property or the other property is converted to commercial use or is disposed of to a person who does not deal at arm’s length with the taxpayer, (A) the fair market value of the property, if the property (I) is the particular property and is neither first term shared-use equipment nor second term shared-use equipment, or (II) is the other property, (B) 25% of the fair market value of the property at the time of its conversion or disposition, if the particular property is first term shared-use equipment and is not second term shared-use equipment, and (C) 50% of the fair market value of the property at the time of its conversion or disposition, if the particular property is second term shared-use equipment. (27.1) to (27.12) [Repealed, 2017, c. 20, s. 23] Recapture of investment tax credit of partnership (28) For the purpose of computing the amount determined under subsection (8) in respect of a partnership at the end of a particular fiscal period, where (a) a particular property, the cost of which is a qualified expenditure, is acquired by the partnership from a person or partnership in the particular fiscal period or in any of the 10 preceding fiscal periods of the partnership, (b) the cost of the particular property is included in an amount, a percentage of which can reasonably be considered to have been included in computing the amount determined under subsection (8) in respect of the partnership at the end of a fiscal period, and (c) in the particular fiscal period and after February 23, 1998, the partnership converts to commercial use, or disposes of without having previously converted to commercial use, the particular property or another property that incorporates the particular property, there shall be deducted in computing the amou