83 (1) Unless a corporation’s capital deduction for a taxation year is determined under subsection (2), its capital deduction for the year for the purposes of the definition of “D” in subsection 82 (1) is the amount calculated using the formula, $15 million × A/B in which, “A” is the amount of the corporation’s taxable capital or taxable capital employed in Canada, as the case may be, for the year, and “B” is the sum of, i. the corporation’s taxable capital or taxable capital employed in Canada for the year, and ii. the taxable capital or taxable capital employed in Canada, as the case may be, of every corporation, if any, (other than a financial institution or corporation that is exempt from tax under this Division or Part III of the Corporations Tax Act) that has a permanent establishment in Canada at any time in the year and with which the corporation is associated for the last taxation year of the associated corporation ending at or before the end of the corporation’s taxation year. 2007, c. 11, Sched. A, s. 83 (1). Election (2) If a corporation and every eligible corporation with which it is associated in a taxation year (in this section referred to as the “associated group”) make an election to have this subsection apply, the corporation’s capital deduction for the year for the purposes of the definition of “D” in subsection 82 (1) is calculated using the formula, C/D in which, “C” is the corporation’s portion, for the year, of the associated group’s net deduction for the calendar year in which the year ends, as determined under subsection (7) or (8), as applicable, and “D” is the corporation’s Ontario allocation factor for the year. 2007, c. 11, Sched. A, s. 83 (2). Eligible corporation (3) A corporation is an eligible corporation for a taxation year for the purposes of subsection (2) if it has a permanent establishment in Canada at any time in the taxation year referred to in that subsection and is neither a financial institution nor a corporation exempt from tax under this Division or Part III of the Corporations Tax Act.  2007, c. 11, Sched. A, s. 83 (3). Associated group’s net deduction (4) For the purposes of this section, an associated group’s net deduction for a calendar year is the sum of the net deductions of each corporation in the associated group for the last taxation year of the corporation ending in the calendar year.  2007, c. 11, Sched. A, s. 83 (4). Net deduction of a corporation in the associated group (5) The net deduction of a corporation for a taxation year for the purposes of subsection (4) is the amount calculated using the formula, E × $15 million × F/G in which, “E” is the corporation’s Ontario allocation factor for the last taxation year ending in the calendar year preceding the calendar year in which the taxation year ends, “F” is the amount of the total assets of the corporation as recorded in its books and records for the last taxation year ending in the calendar year preceding the calendar year in which the taxation year ends, and “G” is the sum of the total assets of each corporation in the associated group as recorded in its books and records for its last taxation year ending in the calendar year preceding the calendar year in which the taxation year ends. 2007, c. 11, Sched. A, s. 83 (5). Total assets (6) For the purposes of the definitions of “F” and “G” in subsection (5), the amount of the total assets of a corporation that is not resident in Canada is deemed to be the amount of its total assets situated in Canada.  2007, c. 11, Sched. A, s. 83 (6). Corporation’s portion of net deduction (7) If an associated group makes an election under subsection (2) and all of the corporations in the associated group enter into a written allocation agreement that satisfies the following conditions, the corporation’s portion, for a taxation year, of the associated group’s net deduction for the calendar year in which the taxation year ends is the amount determined in accordance with the written allocation agreement: 1. The allocation agreement must allocate among the corporations in the associated group the amount of the associated group’s net deduction for the calendar year in which the corporations’ taxation years end. 2. The amount of the associated group’s net deduction for that calendar year must be determined in accordance with subsection (4). 3. The total of all amounts allocated to each corporation under the agreement must not exceed the associated group’s net deduction for that calendar year. 4. For the taxation year that ends in the calendar year to which the allocation agreement applies, each corporation in the associated group is required to determine its tax payable under this Division in accordance with the allocation agreement. 5. A copy of the allocation agreement must be delivered to the Ontario Minister with the corporation’s tax return for the taxation year in which an amount is claimed under subsection (1).  2007, c. 11, Sched. A, s. 83 (7). Same, conditions not satisfied (8) If an associated group makes an election under subsection (2) but subsection (7) does not apply, the corporation’s portion, for a taxation year, of the associated group’s net deduction for the calendar year in which the taxation year ends is nil or such higher amount as may be designated by the Ontario Minister.  2007, c. 11, Sched. A, s. 83 (8). Capital tax credit for manufacturers