Income Tax Act — I-3.3 127.45
en paid by a taxpayer for a taxation year is deemed to have been deducted from the taxpayer’s tax otherwise payable under this Part for the year. Repayment of assistance (7) Where a taxpayer has, in a particular taxation year, repaid (or has not received and can no longer reasonably be expected to receive) an amount of government assistance or non-government assistance that was applied to reduce the cost of a particular property under paragraph (5)(b.1) for a preceding taxation year, the amount repaid (or no longer expected to be received) is to be added to the cost to the taxpayer of a separate clean technology property that is deemed to be acquired in the particular year for the purposes of this section, provided that a transaction or event described in paragraph (11)(c) has not occurred in respect of the particular property. Partnerships (8) Subject to section 127.47, where, in a particular taxation year of a taxpayer who is a member of a partnership, an amount would be determined under subsection (2) in respect of the partnership, for its taxation year that ends in the particular year, if the partnership were a taxable Canadian corporation and its fiscal period were its taxation year, the portion of that amount that can reasonably be considered to be the taxpayer’s share thereof shall be added in computing the clean technology investment tax credit of the taxpayer at the end of the particular year. Unpaid amounts (9) For the purposes of this section, where any part of the capital cost of a taxpayer’s particular clean technology property is unpaid on the day that is 180 days after the end of the taxation year in which a deduction in respect of a clean technology investment tax credit would otherwise be available in respect of the particular property, such amount is to be (a) excluded from the capital cost of the particular property in the year; and (b) added to the capital cost of a separate clean technology property that is deemed to be acquired at the time the amount is paid, provided that a transaction or event described in paragraph (11)(c) has not occurred in respect of the particular property. Tax shelter investment (10) Subsection (2) does not apply if a clean technology property — or an interest in a person or partnership that has, directly or indirectly, an interest in, or for civil law, a right in, such property — is a tax shelter investment for the purpose of section 143.2. Recapture — conditions for application (11) Subsection (12) applies in a taxation year if (a) a taxpayer acquired a clean technology property in the year or any of the preceding 10 calendar years; (b) the taxpayer became entitled to a clean technology investment tax credit in respect of the capital cost, or a portion of the capital cost, of the particular property; and (c) in the year, the particular property (or another property that incorporates the particular property) is converted to a non-clean technology use, is exported from Canada or is disposed of without having been previously exported or converted to a non-clean technology use. Recapture of credit (12) If this subsection applies, there shall be added to the taxpayer’s tax otherwise payable under this Part for the year the lesser of (a) the amount of the taxpayer’s clean technology investment tax credit in respect of the particular property, and (b) the amount determined by the formula A × (B ÷ C) where A is the amount of the taxpayer’s clean technology investment tax credit in respect of the particular property, B is (i) in the case where the particular property is disposed of to a person who deals at arm’s length with the taxpayer, the proceeds of disposition of the property, or (ii) in the case where the particular property is disposed of to a person who does not deal at arm’s length with the taxpayer, is converted to a non-clean technology use or is exported from Canada, the fair market value of the property, and C is the capital cost of the particular property on which the clean