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Budget Implementation Act, 2019, No. 1 (S.C. 2019, c. 29)

Assented to 2019-06-21

PART 1Income Tax Act and Other Legislation (continued)

C.R.C., c. 945Income Tax Regulations (continued)

  •  (1) Section 7307 of the Regulations is amended by adding the following after subsection (1):

    • (1.1) For the purposes of paragraph 13(7)(i) of the Act, the amount prescribed in respect of a zero-emission passenger vehicle of a taxpayer is the amount determined by the formula

      A + B

      where

      A
      is $55,000; and
      B
      is the sum that would have been payable in respect of federal and provincial sales taxes on the acquisition of the vehicle if it had been acquired by the taxpayer at a cost equal to A, before the application of the federal and provincial sales taxes.
  • (2) Subsection (1) is deemed to have come into force on March 19, 2019.

  •  (1) The portion of paragraph 8302(3)(j) of the Regulations before subparagraph (i) is replaced by the following:

    • (j) if the amount of the individual’s lifetime retirement benefits depends solely on the actual amount of the pension (in this paragraph referred to as the “statutory pension”) payable to the individual under paragraph 46(1)(a) of the Canada Pension Plan or a similar provision of a provincial pension plan (as defined in section 3 of that Act), the amount of statutory pension (expressed on an annualized basis) were equal to

  • (2) Subsection 8302(3) of the Regulations is amended by adding the following after paragraph (j):

    • (j.1) if the amount of the individual’s lifetime retirement benefits depends on the actual amount of the pension (in this paragraph referred to as the “statutory pension”) payable to the individual under paragraphs 46(1)(a) and (b) of the Canada Pension Plan or a similar provision of a provincial pension plan (as defined in section 3 of that Act), the amount of statutory pension (expressed on an annualized basis) were equal to

      • (i) the amount determined by the formula

        A × B

        where

        A
        is
        • (A) for 2018 and preceding years, 0.25,

        • (B) for 2019, 0.2625,

        • (C) for 2020, 0.275,

        • (D) for 2021, 0.29165,

        • (E) for 2022, 0.3125, and

        • (F) for 2023 and subsequent years, 1/3, and

        B
        is the lesser of the Year’s Maximum Pensionable Earnings for the particular year and,
        • (A) in the case of an individual who renders services throughout the particular year on a full-time basis to employers who participate in the plan, the aggregate of all amounts each of which is the individual’s remuneration for the particular year from such an employer, and

        • (B) in any other case, the amount that it is reasonable to consider would be determined under clause (A) if the individual had rendered services throughout the particular year on a full-time basis to employers who participate in the plan, or

      • (ii) at the option of the plan administrator, any other amount determined in accordance with a method for estimating the statutory pension that can be expected to result in amounts substantially similar to amounts determined under subparagraph (i);

  • (3) Subsections (1) and (2) are deemed to have come into force on January 1, 2019.

  •  (1) Subclauses (d)(i)(A)(I) and (II) of Class 43.1 in Schedule II to the Regulations are replaced by the following:

    • (I) active solar heating equipment, including such equipment that consists of above ground solar collectors, solar energy conversion equipment, solar water heaters, thermal energy storage equipment, control equipment and equipment designed to interface solar heating equipment with other heating equipment, or

    • (II) equipment that is part of a ground source heat pump system that transfers heat to or from the ground or groundwater (but not to or from surface water such as a river, a lake or an ocean) and that, at the time of installation, meets the standards set by the Canadian Standards Association for the design and installation of earth energy systems, including such equipment that consists of piping (including above or below ground piping and the cost of drilling a well, or trenching, for the purpose of installing that piping), energy conversion equipment, thermal energy storage equipment, control equipment and equipment designed to enable the system to interface with other heating or cooling equipment, and

  • (2) Subclause (d)(v)(B)(I) of Class 43.1 in Schedule II to the Regulations is replaced by the following:

    • (I) control and conditioning equipment,

  • (3) The portion of subparagraph (d)(vi) of Class 43.1 in Schedule II to the Regulations before clause (A) is replaced by the following:

    • (vi) fixed location photovoltaic equipment that is used by the taxpayer, or a lessee of the taxpayer, primarily for the purpose of generating electrical energy from solar energy if the equipment consists of solar cells or modules and related equipment including inverters, control and conditioning equipment, support structures and transmission equipment, but not including

  • (4) Subparagraph (d)(vii) of Class 43.1 in Schedule II to the Regulations is replaced by the following:

    • (vii) equipment used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of generating electrical energy solely from geothermal energy, including such equipment that consists of piping (including above or below ground piping and the cost of drilling a well, or trenching, for the purpose of installing that piping), pumps, heat exchangers, steam separators, electrical generating equipment and ancillary equipment used to collect the geothermal heat, but not including buildings, transmission equipment, distribution equipment, property otherwise included in Class 10 and property that would be included in Class 17 if that Class were read without reference to its subparagraph (a.1)(i),

  • (5) Subparagraph (d)(vii) of Class 43.1 in Schedule II to the Regulations, as enacted by subsection (4), is replaced by the following:

    • (vii) equipment used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of generating electrical energy or heat energy, or both electrical and heat energy, solely from geothermal energy, including such equipment that consists of piping (including above or below ground piping and the cost of completing a well (including the wellhead and production string), or trenching, for the purpose of installing that piping), pumps, heat exchangers, steam separators, electrical generating equipment and ancillary equipment used to collect the geothermal heat, but not including buildings, distribution equipment, equipment used to heat water for use in a swimming pool, equipment described in subclause (i)(A)(II), property otherwise included in Class 10 and property that would be included in Class 17 if that Class were read without reference to its paragraph (a.1),

  • (6) Subparagraph (d)(xii) of Class 43.1 in Schedule II to the Regulations is replaced by the following:

    • (xii) fixed location fuel cell equipment used by the taxpayer, or by a lessee of the taxpayer, that uses hydrogen generated only from ancillary electrolysis equipment (or, if the fuel cell is reversible, the fuel cell itself) using electricity all or substantially all of which is generated by using kinetic energy of flowing water or wave or tidal energy (otherwise than by diverting or impeding the natural flow of the water or by using physical barriers or dam-like structures) or by geothermal, photovoltaic, wind energy conversion, or hydro-electric equipment, of the taxpayer or the lessee, and equipment ancillary to the fuel cell equipment other than buildings or other structures, transmission equipment, distribution equipment, auxiliary electrical generating equipment and property otherwise included in Class 10 or 17,

  • (7) Subparagraph (d)(xiv) of Class 43.1 in Schedule II to the Regulations is replaced by the following:

    • (xiv) property that is used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of generating electricity using kinetic energy of flowing water or wave or tidal energy (otherwise than by diverting or impeding the natural flow of the water or by using physical barriers or dam-like structures), including support structures, control and conditioning equipment, submerged cables and transmission equipment, but not including buildings, distribution equipment, auxiliary electricity generating equipment, property otherwise included in Class 10 and property that would be included in Class 17 if that class were read without reference to its subparagraph (a.1)(i),

  • (8) Paragraph (d) of Class 43.1 in Schedule II to the Regulations is amended by striking out “or” at the end of subparagraph (xv) and “and” at the end of subparagraph (xvi) and by adding the following after subparagraph (xvi):

    • (xvii) equipment used by the taxpayer, or by a lessee of the taxpayer, for the purpose of charging electric vehicles, including charging stations, transformers, distribution and control panels, circuit breakers, conduits and related wiring, if

      • (A) the equipment is situated

        • (I) on the load side of an electricity meter used for billing purposes by a power utility, or

        • (II) on the generator side of an electricity meter used to measure electricity generated by the taxpayer or the lessee, as the case may be,

      • (B) more than 75 per cent of the electrical equipment capacity is dedicated to charging electric vehicles, and

      • (C) the equipment is

        • (I) an electric vehicle charging station (other than a building) that supplies more than 10 kilowatts of continuous power, or

        • (II) used primarily in connection with one or more electric vehicle charging stations (other than buildings) each of which supplies more than 10 kilowatts of continuous power, or

    • (xviii) fixed location energy storage property that

      • (A) is used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of storing electrical energy

        • (I) including batteries, compressed air energy storage, flywheels, ancillary equipment (including control and conditioning equipment) and related structures, and

        • (II) not including buildings, pumped hydroelectric storage, hydro electric dams and reservoirs, property used solely for backup electrical energy, batteries used in motor vehicles, fuel cell systems where the hydrogen is produced via steam reformation of methane and property otherwise included in Class 10 or 17, and

      • (B) either

        • (I) if the electrical energy to be stored is used in connection with property of the taxpayer or a lessee of the taxpayer, as the case may be, is described in paragraph (c) or would be described in this paragraph if it were read without reference to this subparagraph, or

        • (II) meets the condition that the efficiency of the electrical energy storage system that includes the property – computed by reference to the quantity of electrical energy supplied to and discharged from the electrical energy storage system – is greater than 50%, and

  • (9) Subsections (1) to (4) and (6) to (8) apply to property acquired after March 21, 2016 that has not been used or acquired for use before March 22, 2016.

  • (10) Subsection (5) applies in respect of property acquired for use after March 21, 2017 that has not been used or acquired for use before March 22, 2017.

 
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