Income Tax Act — I-3.3 127.44
y and is (A) an amount of any non-government assistance received by the taxpayer in or before the taxation year in which the property was acquired, or (B) an amount that is not described in clause (A) that, in the taxation year, the taxpayer is entitled to receive or can reasonably be expected to receive and that would be non-government assistance if it were received by the taxpayer; (b) the amount of a qualified CCUS expenditure of a taxpayer in a taxation year in respect of a CCUS project shall not include (i) any amount in respect of an expenditure incurred by the taxpayer before 2022 or after 2040, (ii) any amount in respect of any expenditure incurred (A) to acquire property that has been used for any purpose by any person or partnership before it was acquired by the taxpayer, (B) for which a tax credit was previously deducted under this section, by any person in respect of the property to which the expenditure relates (other than an expenditure for repair or replacement of that property), (C) for which an investment tax credit or any other clean economy tax credit (as defined in subsection 127.47(1)) is deducted, or (D) in respect of a specified natural gas energy system (as defined in subsection 127.491(1)), if a clean electricity investment tax credit (as defined in subsection 127.491(1)) is deducted by any person in respect of any property that is part of the system, (iii) any amount in respect of an expenditure incurred for a preliminary CCUS work activity, (iv) any amount that has, by virtue of section 21, been added to the cost of a property, (v) an expenditure that is incurred by a taxpayer on or after the first day of commercial operations of the CCUS project to the extent that the total of all such amounts exceeds 10% of the total of all qualified CCUS expenditures incurred by the taxpayer before the first day of commercial operations of the CCUS project, or (vi) except where subsection 211.92(11) applies, an expenditure incurred by a taxpayer to acquire a property that is disposed of, or exported from Canada, by the taxpayer in the same taxation year as it was acquired; (c) except for the purposes of subparagraph (b)(i), and subject to subsection (12), if a taxpayer has acquired property outside Canada, the expenditure is deemed to have been incurred, and the property acquired, at the time it is imported into Canada; (d) subsections 127(11.6) to (11.8) apply in this section in respect of an expenditure or cost to a taxpayer except that (i) the reference in subsection 127(11.6) to subsection 127(11.5) shall be read as a reference to section 127.44, (ii) the reference in subsection 127(11.6) to subsection 127(26) shall be read as a reference to subsection 127.44(12), and (iii) the term “qualified expenditure” is to be read as “qualified CCUS expenditure”; (e) if an expenditure of a taxpayer would be a qualified CCUS expenditure, except that the expenditure is incurred in a different taxation year from the year in which the related property is acquired, the expenditure is deemed to be incurred, and the property is deemed to be acquired, in the later of the two years; (f) for the purposes of determining whether a process is a CCUS process, whether a property is described in Class 57 or 58 of Schedule II to the Income Tax Regulations or whether a property is dual-use equipment, the technical guide published by the Department of Natural Resources shall apply conclusively with respect to engineering and scientific matters; (g) if the taxpayer has failed to file a revised project plan required to be filed under subsection (6) by the deadline in that subsection, (i) subject to subparagraph (ii), a taxpayer’s projected eligible use percentage for a CCUS project is deemed to be nil for the total CCUS project review period until such time as the taxpayer has filed the revised project plan, and (ii) once the taxpayer has filed the revised project plan, subparagraph (i) is deemed never to have applied; (h) subject to paragra