1002. (1) In this section, “transferor” means a corporation or a partnership one of whose members is a corporation. (2) For the purposes of clause 29.1 (3) (b) of the Act, the rules in paragraph 2 of subsection 29.1 (2) of the Act do not apply to a disposition of property by a transferor to a taxable Canadian corporation if, (a) the transferor and the corporation each have permanent establishments in Ontario in the taxation year or fiscal period to which the election in respect of the disposition relates; (b) section 5.1 of the Act does not apply to the disposition; (c) one of the conditions set out in subsection (3) is satisfied; and (d) the transferor and the corporation agree on an amount in respect of the property in their election for the purposes of the Act that is within the range of amounts prescribed by subsection (4). (3) The following are the conditions referred to in clause (2) (c): 1. The Ontario allocation percentage of the corporation for the taxation year to which the election relates in respect of the disposition is not more than 10 percentage points greater or less than the Ontario allocation percentage of the transferor for the taxation year or fiscal period, as the case may be, to which the election in respect of the disposition relates. 2. The disposition is from a transferor that is a corporation to one or more other corporations as part of a reorganization in the course of which a dividend is received by a corporation to which subsection 55 (2) of the Federal Act would have applied, except that paragraph 55 (3) (b) of that Act applies, and, in the case where the property is a qualifying intellectual property under section 203, i. the corporation acquires the property primarily for the purpose of implementing in Ontario the same innovation or invention for which the property was acquired by the transferor, and ii. if the property was used exclusively in Ontario by the transferor to implement the innovation or invention for which the transferor acquired the property, the property will be used exclusively in Ontario by the corporation for the same purpose. 3. The property is a qualifying intellectual property under section 203 which is acquired by the corporation primarily for the purpose of implementing in Ontario the same innovation or invention for which the property was acquired by the transferor, and, if the property was used exclusively in Ontario by the transferor to implement the innovation or invention for which the transferor acquired the property, the property will be used exclusively in Ontario by the corporation for the same purpose. 4. The property is not a qualifying intellectual property under section 203, and the cost amount of the property to the transferor for the purposes of the Act immediately before the disposition is different than the cost amount of the property to the transferor for the purposes of the Federal Act by reason that different amounts were deducted from income or from tax under the Act and under the Federal Act on account of scientific research and experimental development activities carried on in Ontario. (4) For the purposes of clause (2) (d), an amount is within the range of amounts prescribed by this subsection if it is not greater than the greater of the following two amounts and not less than the lesser of the following two amounts: 1. The amount that the transferor and corporation agree upon or are deemed to agree upon in respect of the property under the Federal Act. 2. The amount referred to in paragraph 1 less the cost amount of the property immediately before the disposition for the purposes of the Federal Act, plus the cost amount of the property for the purposes of the Act immediately before the disposition.  O. Reg. 76/99, s. 4.