Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p17
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 17/24)
Character Range: 1069000–1071674

project amount is expended.
 (5) Your deduction for an income year cannot be more than the amount of the component "pool value" in the formula in subsection (1) for that year.

40‑835  Reduction of deduction
  You must reduce your deduction under section 40‑830 or 40‑832 for an income year by a reasonable amount for the extent (if any) to which the project operates in the year for purposes other than *taxable purposes.
Note: If Division 250 applies to you and an asset:
(a) if section 250‑150 applies—you are taken not to be using the asset for taxable purposes to the extent specified under subsection 250‑150(3); or
(b) otherwise—you are taken not to be using the asset for such purposes.

40‑840  Meaning of project amount
 (1) An amount of *mining capital expenditure or *transport capital expenditure you incur is a project amount if:
 (a) it does not form part of the *cost of a *depreciating asset you *hold or held; and
 (b) you cannot deduct it under a provision of this Act outside this Subdivision; and
 (c) it is directly connected with:
 (i) for mining capital expenditure—carrying on the *mining and quarrying operations in relation to which the expenditure is incurred; or
 (ii) for transport capital expenditure—carrying on the *business in relation to which the expenditure is incurred.
 (2) Another amount of capital expenditure you incur is also a project amount so far as:
 (a) it does not form part of the *cost of a *depreciating asset you *hold or held; and
 (b) you cannot deduct it under a provision of this Act outside this Subdivision; and
 (c) it is directly connected with a project you carry on or propose to carry on for a *taxable purpose; and
 (d) it is one of these:
 (i) an amount paid to create or upgrade community infrastructure for a community associated with the project; or
 (ii) an amount incurred for site preparation costs for depreciating assets (except, for *horticultural plants, in draining swamp or low‑lying land or in clearing land); or
 (iii) an amount incurred for feasibility studies for the project; or
 (iv) an amount incurred for environmental assessments for the project; or
 (v) an amount incurred to obtain information associated with the project; or
 (vi) an amount incurred in seeking to obtain a right to *intellectual property; or
 (vii) an amount incurred for ornamental trees or shrubs.

40‑845  Project life
  You work out the project life of a project by estimating how long (in years, including fractions of years) it will be from when the project starts to operate until it stops operating.

40‑855  When you start to deduct amounts for a project pool
  You start to deduct amounts for a project pool