Income Tax Regulations — (d)
idal energy, including support structures, control and conditioning equipment, submerged cables and eligible transmission equipment, but not including buildings, distribution equipment, auxiliary electricity generating equipment, property otherwise included in Class 10 and property that would be included in Class 17 if that class were read without reference to its subparagraph (a.1)(i), (xv) district energy equipment that (A) is used by the taxpayer or by a lessee of the taxpayer, (B) is part of a district energy system that uses thermal energy that is primarily supplied by equipment that is described in subparagraphs (i), (iv), (vii) or (ix) or would be described in those subparagraphs if owned by the taxpayer, and (C) is not a building, (xvi) equipment that (A) is used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of generating producer gas (other than producer gas that is to be converted into liquid fuels or chemicals), (B) uses feedstock of which no more than 25% of the energy content (expressed as the higher heating value of the feedstock) is from fossil fuel, as determined on an annual basis, (C) may include (I) related piping (including fans and compressors), (II) air separation equipment, (III) storage equipment, (IV) equipment used for drying or shredding feedstock, (V) ash-handling equipment, (VI) equipment used to upgrade the producer gas into biomethane, and (VII) equipment used to remove non-combustibles and contaminants from the producer gas, and (D) does not include (I) buildings or other structures, (II) heat rejection equipment (such as condensers and cooling water systems), (III) equipment used to convert producer gas into liquid fuels or chemicals, (IV) property otherwise included in Class 10 or 17, and (V) pollution abatement equipment, (xvii) equipment used by the taxpayer, or by a lessee of the taxpayer, for the purpose of charging electric vehicles, including charging stations, transformers, distribution and control panels, circuit breakers, conduits and related wiring, if (A) the equipment is situated (I) on the load side of an electricity meter used for billing purposes by a power utility, or (II) on the generator side of an electricity meter used to measure electricity generated by the taxpayer or the lessee, as the case may be, (B) more than 75 per cent of the electrical equipment capacity is dedicated to charging electric vehicles, and (C) the equipment is (I) an electric vehicle charging station (other than a building) that supplies more than 10 kilowatts of continuous power, or (II) used primarily in connection with one or more electric vehicle charging stations (other than buildings) each of which supplies more than 10 kilowatts of continuous power, (xviii) fixed location energy storage property that (A) is used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of storing and discharging electrical energy (I) including batteries, compressed air energy storage, flywheels, ancillary equipment (including control and conditioning equipment) and related structures, and (II) not including buildings, pumped hydroelectric storage, hydro electric dams and reservoirs, property used solely for backup electrical energy, batteries used in vehicles or other automotive equipment, property used to charge vehicles or other automotive equipment, fuel cell systems where the hydrogen is produced via steam reformation of methane and property otherwise included in Class 10 or 17, and (B) either (I) the electrical energy to be stored and discharged is generated from other property that is described in paragraph (c) or in any other subparagraph of this paragraph, or (II) meets the condition that the efficiency of the electrical energy storage system that includes the property – computed by reference to the quantity of electrical energy supplied to and discharged from the electrical energy storage system – is greater than 50%, and (xix) a pumped hydroelectric energy s