Income Tax Regulations — 1100
the year (before making any deduction under this subsection for the year); (za.2) where throughout the taxation year the taxpayer was a common carrier that owned and operated a railway, such additional amount as the taxpayer may claim in respect of property for which a separate class is prescribed by subsection 1101(5e.2), not exceeding five per cent of the undepreciated capital cost to the taxpayer of property of that class as of the end of the year (before making any deduction under this subsection for the year); (zb) such additional amount as he may claim in respect of property for which a separate class is prescribed by subsection 1101(5f) not exceeding 3% of the undepreciated capital cost to him of property of that class as of the end of the taxation year (before making any deduction under this subsection for the taxation year); Additional Allowances — Railway Expansion and Modernization Property (zc) where the taxpayer owns and operates a railway as a common carrier, such additional amount as he may claim in respect of property of a class in Schedule II (in this paragraph referred to as “designated property” of the class) (i) that is (A) included in Class 1 in Schedule II by virtue of paragraph (h) or (i) of that Class, (B) a bridge, culvert, subway or tunnel included in Class 1 in Schedule II that is ancillary to railway track and grading, (C) a trestle included in Class 3 in Schedule II that is ancillary to railway track and grading, (D) included in Class 6 in Schedule II by virtue of paragraph (j) of that Class, (E) machinery or equipment included in Class 8 in Schedule II that is ancillary to (I) railway track and grading, or (II) railway traffic control or signalling equipment, including switching, block signalling, interlocking, crossing protection, detection, speed control or retarding equipment, but not including property that is principally electronic equipment or systems software therefor, (F) machinery or equipment included in Class 8 in Schedule II that (I) was acquired principally for the purpose of maintaining or servicing, or (II) is ancillary to and used as part of, a railway locomotive or railway car, (G) included in Class 10 in Schedule II by virtue of subparagraph (m)(i), (ii) or (iii) of that Class, (H) included in Class 28 in Schedule II by virtue of subparagraph (d)(ii) of that Class (other than property referred to in subparagraph (m)(iv) of Class 10), or (I) included in Class 35 in Schedule II, (ii) that was acquired by him principally for use in or is situated in Canada, (iii) that was acquired by him in respect of the railway in the taxation year or in one of the four immediately preceding taxation years, at a time that was after April 10, 1978 but before 1988, and (iv) that was not used for any purpose whatever before it was acquired by him, not exceeding the lesser of (v) six per cent of the aggregate of the capital cost to him of the designated property of the class, and (vi) the undepreciated capital cost to him as of the end of the taxation year (after making all deductions claimed by him under other provisions of this subsection for the taxation year but before making any deduction under this paragraph for the taxation year) of property of the class. Class 38 (zd) such amount as the taxpayer may claim in respect of property of Class 38 in Schedule II not exceeding that percentage which is the aggregate of (i) that proportion of 40 per cent that the number of days in the taxation year that are in 1988 is of the number of days in the taxation year that are after 1987, (ii) that proportion of 35 per cent that the number of days in the taxation year that are in 1989 is of the number of days in the taxation year, and (iii) that proportion of 30 per cent that the number of days in the taxation year that are after 1989 is of the number of days in the taxation year of the undepreciated capital cost to the taxpayer of property of that class as of the end of the taxation year (before making any dedu