Income Tax Act — I-3.3 127.45
ty if a CCUS tax credit (as defined in subsection 127.44(1)) or a clean hydrogen tax credit (as defined in subsection 127.48(1)) was deducted by any person in respect of that property, (iii) that has, by virtue of section 21, been added to the cost of a property, or (iv) that is in respect of an expenditure incurred for a preliminary work activity; (b) be determined without reference to subsections 13(7.1) and (7.4); (b.1) be reduced by the total of all amounts, each of which can reasonably be considered to be in respect of the property and is (i) an amount of any government assistance or non-government assistance received by the taxpayer in or before the taxation year in which the property was acquired, or (ii) an amount not described in subparagraph (i) that, in the taxation year, the taxpayer is entitled to or can reasonably be expected to receive and that would be government assistance or non-government assistance if it were received by the taxpayer; (c) be determined with reference to subsections 127(11.6) to (11.8) 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) is to be read as a reference to section 127.45, (ii) the reference in subsection 127(11.6) to subsection 127(26) is to be read as a reference to subsection 127.45(9), and (iii) the term “qualified expenditure” is to be read as an expenditure eligible to be added to the capital cost of a clean technology property. Environmental compliance (5.1) A property that would otherwise be clean technology property of a qualifying taxpayer is deemed not to be a clean technology property of the taxpayer if, at the time the property becomes available for use by the taxpayer, there is substantial non-compliance by the taxpayer with the requirements of any environmental law, by-law or regulation of Canada, a province, a municipality, or a municipal or public body performing a function of government in Canada that is applicable in respect of the property. Compliance — reasonable efforts (5.2) The following rules apply in respect of a qualifying taxpayer’s property described in subparagraph (d)(viii) of the definition clean technology property in subsection (1): (a) where the property is temporarily operated in a manner that is a non-clean technology use solely because of a deficiency, failing or shutdown of the system of which it is a part, and that deficiency, failing or shutdown is beyond the control of the taxpayer, the property is deemed, for the purposes of subsections (11), (12), (16) and (17), not to be operated in a manner that is a non-clean technology use during the period of the deficiency, failing or shutdown, if the taxpayer makes all reasonable efforts to rectify the circumstances within a reasonable time; and (b) for the purpose of paragraph (a), the system referred to in that paragraph may include property of another person or partnership if (i) the property would reasonably be considered to be part of the system if the property were owned by the taxpayer, (ii) the property utilizes electrical energy or heat energy obtained from the system, (iii) the operation of the property is necessary for the system to avoid operation in a manner that is a non-clean technology use, and (iv) at the time the system first became operational, the deficiency, failing or shutdown in the operation of the property could not reasonably have been anticipated to occur within five calendar years after that time. Deemed deduction (6) For the purposes of this section, paragraph 12(1)(t), subsection 13(7.1), the description of I in the definition undepreciated capital cost in subsection 13(21) and subsection 53(2) and sections 127.44, 127.48, 127.49, 127.491 and 129, the amount deemed under subsection (2) to have been 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