33 (1) A corporation may, in computing the amount of its tax payable under this Division for a taxation year, deduct a tax credit calculated using the formula, A × B × X in which, “A” is the amount of the corporation’s tax credit base for the year, “B” is the corporation’s Ontario domestic factor for the year, and “X” is the sum of, (a) 0.02 multiplied by the ratio of the number of days in the taxation year that are before July 1, 2011 to the total number of days in the taxation year, (b) 0.015 multiplied by the ratio of the number of days in the taxation year that are after June 30, 2011 to the total number of days in the taxation year. (c)  Repealed: 2012, c. 9, s. 8 (2). 2009, c. 34, Sched. U, s. 9; 2012, c. 9, s. 8. Tax credit base (2) For the purposes of this section, a corporation’s tax credit base for a taxation year is the sum of “C” and “D” where, “C” is the least of, (a) the amount of the corporation’s adjusted business income for the year, (b) the amount of the corporation’s eligible Canadian profits for the year, if the corporation is not a Canadian-controlled private corporation throughout the year, (c) the amount, if any, by which the amount of the corporation’s eligible Canadian profits for the year exceeds the corporation’s Ontario adjusted small business income for the year, if the corporation is a Canadian-controlled private corporation throughout the year, and (d) the amount, if any, by which the corporation’s adjusted taxable income for the year exceeds, (i) if the corporation was a Canadian-controlled private corporation throughout the year, the sum of, (A)  the corporation’s Ontario adjusted small business income for the year, (B)  the amount determined by multiplying the corporation’s adjusted taxable income for the year by the corporation’s foreign allocation factor for the year, and (C)  the corporation’s aggregate investment income for the year, as determined under subsection 129 (4) of the Federal Act, (ii) if the corporation is resident in Canada but not a Canadian-controlled private corporation throughout the year, the amount determined by multiplying the corporation’s adjusted taxable income for the year by the corporation’s foreign allocation factor for the year, or (iii) nil, in any other case, and “D” is the amount, if any, by which the least of the following amounts exceeds the amount of “C” for the year: 1. The amount determined under clause (a) of the definition of “C” in respect of the corporation for the year. 2. The amount that would be the amount determined under clause (b) or (c) of the definition of “C”, as the case may be, in respect of the corporation for the year if, i. the definition of “manufacturing or processing” in subsection 125.1 (3) of the Federal Act were read without reference to paragraph (h) of that definition (other than for the purpose of the application of subsection (5) and section 5201 of the Federal regulations), and ii. paragraph 5 of subsection (7) applied for the purposes of determining the amount of “C”. 3. The amount determined under clause (d) of the definition of “C” in respect of the corporation for the year.  2007, c. 11, Sched. A, s. 33 (2). Adjusted business income (3) The adjusted business income of a corporation for a taxation year is the amount, if any, by which “E” exceeds “F” where, “E” is the sum of all amounts each of which is the adjusted income of the corporation for the year from an active business carried on in Canada, and “F” is the sum of all amounts each of which is the adjusted loss of the corporation for the year from an active business carried on in Canada.  2007, c. 11, Sched. A, s. 33 (3). Eligible Canadian profits (4) For the purposes of subsection (2), a corporation’s eligible Canadian profits for a taxation year is the sum of, (a) its Canadian manufacturing and processing profits for the year as determined under subsection 125.1 (3) of the Federal Act; (b) its mining income for the year, to the extent it is not included in the amount referred to in clause (a); and (c) the sum of all amounts each of which is the corporation’s income for the year from farming, fishing or logging in Canada, to the extent it is not included in computing an amount referred to in clause (a) or (b).  2007, c. 11, Sched. A, s. 33 (4). Exception (5) Despite subsection (4), the amount of a corporation’s eligible Canadian profits for a taxation year is equal to its adjusted business income for that year, if, (a) the amount by which the sum of its income from all active businesses for the year exceeds the amount that would otherwise be determined under subsection (4) as its eligible Canadian profits for the year is not greater than 20 per cent of the corporation’s adjusted business income for the year; and (b) the corporation’s adjusted business income for the year does not exceed $250,000.  2007, c. 11, Sched. A, s. 33 (5). Ontario adjusted small business income (6) For the purposes of this Part, a corporation’s Ontario adjusted small business income for a taxation year is the amount, if any, calculated using the formula, G – (H/(B × I)) in which, “B”   is the corporation’s Ontario domestic factor for the year, “G” is the amount that would be the corporation’s Ontario small business income for the year if its Ontario domestic factor for the year were one, “H”   is the amount, if any, of the corporation’s surtax payable for the year under section 32, and “I” is the corporation’s small business deduction rate for the year. 2007, c. 11, Sched. A, s. 33 (6). Interpretation (7) The following rules apply for the purposes of this section: 1. A corporation’s income for a taxation year from farming, fishing, industrial mining operations or logging in Canada is determined in accordance with sections 5200, 5202 and 5204 of the Federal regulations as if, i. the references in those sections to “manufacturing or processing” were references to “farming”, “fishing”, “industrial mining operations” or “logging”, as the case may be, ii. qualified activities referred to in those sections were those activities related to the earning of income from farming, fishing, industrial mining operations or logging in Canada, as the case may be, iii. the definition of “industrial mining operations” that applies for the purposes of this section applied for the purposes of those sections, and iv. in the case of activities related to the earning of income from farming in Canada, the cost of capital of the corporation included the cost of land owned by the corporation and used by it in its farming business in Canada and the annual rental cost incurred by the corporation for land leased by it and used by it in its farming business in Canada. 2. A corporation’s mining income for a taxation year is the sum of, i. the amount, if any, by which its mining profits for the year exceed the amount deducted under section 1201 of the Federal regulations in computing the corporation’s income for the year, and ii. its income for the year from industrial mining operations in Canada, other than income included under subparagraph i. 3. Subject to paragraph 4, the amount of a corporation’s mining profits for a taxation year is the amount, if any, by which the sum of the amounts determined under the following subparagraphs exceeds the sum of all adjusted losses for the year from the sources described in subparagraph i: i. the total of the corporation’s adjusted income for the year from, A. the production and processing in Canada of, 1.  ore, other than iron ore or tar sands ore, from a mineral resource in Canada operated by it to any stage that is not beyond the prime metal stage or its equivalent, and 2.  iron ore from a mineral resource in Canada operated by the corporation to any stage that is not beyond the pellet stage or its equivalent, and B. the processing in Canada of, 1.  ore, other than iron ore or tar sands ore, from a mineral resource in Canada not operated by the corporation to any stage that is not beyond the prime metal stage or its equivalent, and 2.  iron ore from a mineral resource in Canada not operated by the corporation to any stage that is not beyond the pellet stage or its equivalent, and ii. if the corporation owns all the issued and outstanding shares of the capital stock of a railway company throughout the year, the amount that may reasonably be considered to be the railway company’s income for its taxation year ending in that year from the transportation of the portion of the corporation’s ore that is described in sub-subparagraph i A. 4. A corporation’s mining profits for a taxation year shall be determined as if the corporation’s adjusted incomes and adjusted losses were computed on the assumption that the corporation had during the year no adjusted income or adjusted loss except from the sources described in subparagraph 3 i and was allowed no deductions in computing its adjusted income for the year other than, i. amounts deducted or deductible under section 66, 66.1, 66.2, 66.4 or 66.7 of the Federal Act or subsection 17 (2) or (6) or section 29 of the Income Tax Application Rules
(Canada) for the year to the extent they have not been taken into account in computing the corporation’s gross resource profits for the year under subsection 1204 (1) of the Federal regulations in respect of production from Canadian fossil fuel sources, and ii. any other deductions for the year that may reasonably be regarded as applicable to the sources of income described in subparagraph 3 i, other than a deduction permitted under section 1201 of the Federal regulations. 5. For the purposes of determining the amount described in paragraph 2 of the definition of “D” in subsection (2), i. electrical energy and steam are deemed to be goods, and ii. subject to paragraph (l) of the definition of “manufacturing and processing” in subsection 125.1 (3) of the Federal Act, the generation of electrical energy for sale and the production of steam are deemed to be manufacturing or processing.  2007, c. 11, Sched. A, s. 33 (7). Definitions (8) In this section, “adjusted income” or “adjusted loss” from a business means, in respect of a corporation for a taxation year, the amount that would be the corporation’s income or loss from the business if, in computing that amount, (a) the amount of the corporation’s adjusted Crown royalties for the year in respect of the business, as determined under subsection 36 (2), were added, and (b) the corporation’s notional resource allowance for the year in respect of the business, under subsection 36 (3), were subtracted; (“revenu rajusté”, “perte rajustée”) “Canadian fossil fuel source” has the prescribed meaning; (“source canadienne de combustible fossile”) “industrial mining operations” has the prescribed meaning; (“activités minières industrielles”) “logging” includes the sale of standing timber, the sale of the right to cut standing timber, the sale of logs, the delivery of logs to a sawmill, pulp or paper plant or other place for processing or manufacturing, the delivery of logs to a carrier for export, the export of logs, the acquisition of standing timber, the cutting of logs from standing timber and any combination of those operations. (“exploitation forestière”)  2007, c. 11, Sched. A, s. 33 (8). Section Amendments with date in force (d/m/y) 2009, c. 34, Sched. U, s. 9 - 15/12/2009 2012, c. 9, s. 8 (1, 2) - 01/07/2012