Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Marginal note:Definitions

• 127.45 (1) The following definitions apply in this section.

  clean technology investment tax credit

  clean technology investment tax credit of a qualifying taxpayer for a taxation year means

  • (a) the total of all amounts each of which is the specified percentage of the capital cost to the taxpayer of clean technology property acquired by the taxpayer in the year; and

  • (b) the total of amounts required by subsection (8) to be added in computing the taxpayer’s clean technology investment tax credit at the end of the year. (crédit d’impôt à l’investissement dans les technologies propres)

  clean technology property

  clean technology property means property

  • (a) situated in Canada (including property described in subparagraph (d)(v) or (xiv) of Class 43.1 in Schedule II to the Income Tax Regulations that is installed in the exclusive economic zone of Canada) and intended for use exclusively in Canada;

  • (b) that has not been used, or acquired for use or lease, for any purpose whatever before it was acquired by the taxpayer;

  • (c) that, if it is to be leased by the taxpayer to another person or partnership, is

    • (i) leased to a qualifying taxpayer or a partnership all the members of which are taxable Canadian corporations, and

    • (ii) leased in the ordinary course of carrying on a business in Canada by the taxpayer whose principal business is selling or servicing property of that type, or whose principal business is leasing property, lending money, purchasing conditional sales contracts, accounts receivable, bills of sale, chattel mortgages or hypothecary claims on movables, bills of exchange or other obligations representing all or part of the sale price of merchandise or services, or any combination thereof; and

  • (d) that is

    • (i) described in subparagraph (d)(ii), (iii.1), (v), (vi) or (xiv) of Class 43.1 in Schedule II to the Income Tax Regulations, but excluding a test wind turbine (within the meaning assigned by subsection 1219(3) of the Income Tax Regulations),

    • (ii) described in subparagraph (d)(xviii) or (xix) of Class 43.1 in Schedule II to the Income Tax Regulations, but excluding equipment that uses any fossil fuel in operation,

    • (iii) described in subparagraph (d)(i) of Class 43.1 in Schedule II to the Income Tax Regulations,

    • (iv) described in Class 56 in Schedule II to the Income Tax Regulations,

    • (iv.1) described in subparagraph (d)(xxi) of Class 43.1 or subparagraph (b)(ii) of Class 43.2 in Schedule II to the Income Tax Regulations and used primarily to charge or dispense hydrogen to property described in Class 56 in Schedule II to the Income Tax Regulations,

    • (v) equipment that is

      • (A) part of a system that does not extract fossil fuels for sale,

      • (B) used exclusively for the purpose of generating electrical energy or heat energy, or a combination of electrical energy and heat energy, solely from geothermal energy, and

      • (C) described in subparagraph (d)(vii) of Class 43.1 in Schedule II to the Income Tax Regulations,

    • (vi) concentrated solar energy equipment,

    • (vii) small nuclear energy property,

    • (viii) waste biomass electricity generation equipment or waste biomass heat generation equipment that is acquired after November 20, 2023, determined without reference to subsection (4), or

    • (ix) incorporated into another property described in any of subparagraphs (i) to (viii), as part of a refurbishment of the other property provided that on completion of the refurbishment the other property is still described in any of subparagraphs (i) to (viii). (bien de technologie propre)

  concentrated solar energy equipment

  concentrated solar energy equipment means equipment, other than excluded equipment, used all or substantially all to generate heat or electricity, or a combination of heat and electricity, exclusively from concentrated sunlight, including

  • (a) reflectors and related solar tracking systems;

  • (b) thermal receivers;

  • (c) thermal energy storage equipment;

  • (d) electrical generating equipment;

  • (e) heat transfer fluid systems;

  • (f) electrical energy storage equipment;

  • (g) eligible transmission equipment, as defined in subsection 1104(13) of the Income Tax Regulations;

  • (h) equipment for the distribution of heat energy;

  • (i) structures whose sole function is to support or house concentrated solar energy equipment; and

  • (j) ancillary instrumentation and controls including weather monitoring systems. (matériel d’énergie solaire concentrée)

  eligible bioenergy fuel

  eligible bioenergy fuel means fuel that is combusted in the operation of a system described in paragraph (a) of the definition waste biomass electricity generation equipment and that is

  • (a) specified waste material; or

  • (b) fuel that has been produced using equipment that is

    • (i) part of the system, and

    • (ii) described in subparagraph (b)(v) or (vi) of the definition waste biomass electricity generation equipment. (carburants admissibles pour la bioénergie)

  excluded equipment

  excluded equipment means

  • (a) auxiliary heating or electrical generating equipment that uses any fossil fuel;

  • (b) buildings or structures other than those structures described in paragraph (i) of the definition of concentrated solar energy equipment;

  • (c) distribution equipment;

  • (d) a vehicle; and

  • (e) property that would be included in Class 17 in Schedule II to the Income Tax Regulations if that Class were read without reference to its paragraph (a.1). (matériel non admissible)

  gaseous biofuel

  gaseous biofuel has the same meaning as in subsection 1104(13) of the Income Tax Regulations. (biocarburants gazeux)

  government assistance

  government assistance has the meaning assigned by subsection 127(9). (aide gouvernementale)

  liquid biofuel

  liquid biofuel has the same meaning as in subsection 1104(13) of the Income Tax Regulations. (biocarburants liquides)

  non-clean technology use

  non-clean technology use means a use of a particular property at a particular time that would, if the property were acquired at that time, result in the property not being a clean technology property, determined without reference to paragraph (b) of the definition clean technology property. (utilisation non concernée par la technologie propre)

  non-government assistance

  non-government assistance has the meaning assigned by subsection 127(9). (aide non gouvernementale)

  nuclear facility

  nuclear facility includes a single site, contiguous sites and adjacent sites where nuclear fission reactors are located or will be located. (installation nucléaire)

  preliminary work activity

  preliminary work activity means an activity that is preliminary to the acquisition, construction, fabrication or installation by or on behalf of a taxpayer of property including, but not limited to, a preliminary activity that is

  • (a) obtaining a right of access or right of way to a project site or obtaining permits or regulatory approvals (including conducting environmental assessments);

  • (b) performing front-end design or engineering work (including front-end engineering design studies) or process engineering work for the development of the project, including

    • (i) collecting and analyzing of site data,

    • (ii) calculating energy, mass, water or air balances,

    • (iii) simulating and analyzing the performance and cost of process design options,

    • (iv) selecting the optimum process design, and

    • (v) conducting feasibility studies or pre-feasibility studies;

  • (c) clearing or excavating land, except excavation directly related to the installation of clean technology property;

  • (d) constructing a temporary access road to the project site; or

  • (e) drilling of a well. (travaux préliminaires)

  qualifying taxpayer

  qualifying taxpayer means a taxable Canadian corporation or a mutual fund trust that is a real estate investment trust (as defined in subsection 122.1(1)). (contribuable admissible)

  refurbishment

  refurbishment means significant alterations, renovations, improvements or additions to a property to substantially

  • (a) extend its useful life;

  • (b) increase its capacity; or

  • (c) improve its efficiency. (remise en état)

  small modular nuclear reactor

  small modular nuclear reactor[Repealed, 2026, c. 3, s. 52]

  small nuclear energy property

  small nuclear energy property means property that

  • (a) is part of a fixed location system that is used all or substantially all to generate electrical energy or heat energy, or a combination of electrical energy and heat energy, from nuclear fission as determined on an annual basis;

  • (b) is located at a nuclear facility where, at the time the property becomes available for use, the total combined gross-rated thermal generating capacity of all planned and existing nuclear fission reactors at the facility is reasonably expected not to exceed 1,400 megawatts thermal;

  • (c) is

    • (i) a reactor,

    • (ii) a reactor vessel,

    • (iii) a reactor control rod,

    • (iv) a moderator,

    • (v) cooling equipment,

    • (vi) heat generating equipment,

    • (vii) nuclear fission fuel handling equipment,

    • (viii) a containment structure,

    • (ix) electrical generating equipment,

    • (x) equipment for the distribution of heat energy within the system, or

    • (xi) equipment that is physically and functionally integrated with property described in any of subparagraphs (i) to (x) and that is ancillary equipment (such as control equipment) used solely to support the functioning of property described in any of subparagraphs (i) to (x); and

  • (d) is not

    • (i) nuclear fission fuel,

    • (ii) property used in nuclear waste disposal or storage,

    • (iii) transmission equipment,

    • (iv) distribution equipment,

    • (v) a vehicle,

    • (vi) property that would be included in Class 17 in Schedule II to the Income Tax Regulations if that Class were read without reference to its paragraph (a.1),

    • (vii) equipment used to export heat energy from the system, or

    • (viii) a building or other structure. (bien pour l’énergie nucléaire de petite taille)

  solid biofuel

  solid biofuel has the same meaning as in subsection 1104(13) of the Income Tax Regulations. (biocarburants solides)

  specified percentage

  specified percentage means, in respect of a clean technology property of the taxpayer that is acquired

  • (a) before March 28, 2023, determined without reference to subsection (4), nil;

  • (b) subject to paragraph (a),

    • (i) on or after March 28, 2023 and before January 1, 2034, 30%, and

    • (ii) after December 31, 2033 and before January 1, 2035, 15%; and

  • (c) after December 31, 2034, nil. (pourcentage déterminé)

  • (d) [Repealed, 2026, c. 3, s. 52]

  specified waste material

  specified waste material has the same meaning as in subsection 1104(13) of the Income Tax Regulations. (déchets déterminés)

  spent pulping liquor

  spent pulping liquor has the same meaning as in subsection 1104(13) of the Income Tax Regulations. (liqueur résiduaire)

  waste biomass electricity generation equipment

  waste biomass electricity generation equipment means property that

  • (a) is part of a system that meets the following conditions

    • (i) the system is used solely for the purpose of generating electrical energy, or a combination of electrical energy and heat energy, determined without reference to the recovery of chemicals from spent pulping liquor,

    • (ii) the system consumes material all or substantially all of the energy content (expressed as the higher heating value of the material) of which is specified waste material, as determined on an annual basis,

    • (iii) the system is on a single site, or on contiguous sites or adjacent sites that function as a single integrated site, at which the activities described in subparagraphs (i) and (ii) are carried out, and

    • (iv) the system meets the following heat rate on an annual basis

      A ≥ (2 × B + C) ÷ (D + E ÷ F)

      where

      A

      is 13,000 BTU per kilowatt-hour,

      B

      is the energy content of fossil fuel (expressed as the higher heating value of the fuel) consumed by the system in BTU,

      C

      is the energy content of eligible bioenergy fuel or any other fuel other than fossil fuel (expressed as the higher heating value of the fuel) consumed by the system in BTU,

      D

      is the gross electrical energy produced by the system in kilowatt-hours,

      E

      is the net useful energy in the form of heat exported from the system to a thermal host in BTU, and

      F

      is 3,412 BTU per kilowatt-hour;

  • (b) is

    • (i) electrical generating equipment,

    • (ii) heat generating equipment used primarily for the purpose of producing heat energy to operate equipment described in subparagraph (i), determined without reference to the recovery of chemicals from spent pulping liquor,

    • (iii) equipment that generates both electrical and heat energy,

    • (iv) heat recovery equipment used primarily for the purpose of conserving energy, or reducing the requirement to acquire energy, by extracting for reuse thermal waste that is generated by equipment described in this paragraph,

    • (v) equipment that

      • (A) is used to produce solid biofuel, liquid biofuel or gaseous biofuel used solely to operate equipment described in any of subparagraphs (i) to (iii) or (vi), from material all or substantially all of the energy content (expressed as the higher heating value of the material) of which is specified waste material, as determined on an annual basis, and

      • (B) is described in any of subparagraphs (d)(xi), (xiii), (xvi) or (xx) of Class 43.1 in Schedule II to the Income Tax Regulations,

    • (vi) equipment that is used to upgrade the combustibility of specified waste material used all or substantially all to operate equipment described in this subparagraph or in any of subparagraphs (i) to (iii) or (v),

    • (vii) equipment for the distribution of heat energy within the system,

    • (viii) equipment that is physically and functionally integrated with equipment described in any of subparagraphs (i) to (vii) and that is ancillary equipment (such as control equipment) used primarily to support the functioning of equipment described in any of subparagraphs (i) to (vii), or

    • (ix) described in any of subparagraphs (i) to (viii) that is incorporated into a system that would not otherwise be described in paragraph (a) if the incorporation causes the system to satisfy the description in paragraph (a); and

  • (c) is not

    • (i) a building or other structure,

    • (ii) transmission equipment,

    • (iii) distribution equipment,

    • (iv) equipment used to export heat energy from the system,

    • (v) equipment for the storage of feedstock or fuel,

    • (vi) pollution abatement equipment,

    • (vii) a vehicle, or

    • (viii) property described in Class 57 or 58 of Schedule II to the Income Tax Regulations. (matériel générateur d’électricité à partir de déchets de biomasse)

  waste biomass heat generation equipment

  waste biomass heat generation equipment means property that

  • (a) is part of a system that meets the following conditions

    • (i) the system is used solely for the purpose of generating heat energy,

    • (ii) the system consumes material all or substantially all of the energy content (expressed as the higher heating value of the material) of which is specified waste material, other than spent pulping liquor, as determined on an annual basis, and

    • (iii) the system is on a single site, or on contiguous sites or adjacent sites that function as a single integrated site, at which the activities described in subparagraphs (i) and (ii) are carried out;

  • (b) is

    • (i) heat generating equipment,

    • (ii) equipment that

      • (A) is used to produce solid biofuel, liquid biofuel or gaseous biofuel used solely to operate equipment described in any of subparagraphs (i) or (iii), from material all or substantially all of the energy content (expressed as the higher heating value of the material) of which is specified waste material, other than spent pulping liquor, as determined on an annual basis, and

      • (B) is described in any of subparagraphs (d)(xi), (xiii), (xvi) or (xx) of Class 43.1 in Schedule II to the Income Tax Regulations,

    • (iii) equipment that is used to upgrade the combustibility of specified waste material, other than spent pulping liquor, used all or substantially all to operate equipment described in this subparagraph or in subparagraph (i) or (ii),

    • (iv) equipment for the distribution of heat energy within the system,

    • (v) equipment that is physically and functionally integrated with equipment described in any of subparagraphs (i) to (iv) and that is ancillary equipment (such as control equipment) used primarily to support the functioning of equipment described in subparagraphs (i) to (iv), or

    • (vi) described in any of subparagraphs (i) to (v) that is incorporated into a system that would not otherwise be described in paragraph (a) if the incorporation causes the system to satisfy the description in paragraph (a); and

  • (c) is not

    • (i) equipment used for the purpose of producing heat energy to operate electrical generating equipment,

    • (ii) a building or other structure,

    • (iii) equipment used to export heat energy from the system,

    • (iv) equipment for the storage of feedstock or fuel,

    • (v) pollution abatement equipment,

    • (vi) a vehicle, or

    • (vii) property described in any of Class 17, 57 or 58 of Schedule II to the Income Tax Regulations. (matériel générateur de chaleur à partir de déchets de biomasse)

• Marginal note:Interpretive rule — small nuclear energy property

  (1.1) For the purpose of this section, where a qualifying taxpayer has a leasehold interest in a small nuclear energy property

  • (a) subject to subsection (4), the taxpayer is deemed to acquire the property when it acquires the leasehold interest in the property;

  • (b) the capital cost of the leasehold interest in the property to the taxpayer is deemed to be its capital cost of the property; and

  • (c) the property is deemed to be disposed of by the taxpayer when it ceases to hold the leasehold interest in the property for proceeds of disposition equal to the fair market value of the property at the time it ceases to hold the leasehold interest.

• Marginal note:Clean technology investment tax credit

  (2) If a qualifying taxpayer files with its return of income for a taxation year a prescribed form containing prescribed information, the taxpayer is deemed to have paid on its balance-due day for the year an amount on account of the taxpayer’s tax payable under this Part for the year equal to the taxpayer’s clean technology investment tax credit for the year.

• Marginal note:Time limit for application

  (3) A payment on account of tax payable shall not be deemed to be paid under subsection (2) if the taxpayer does not file with the Minister the prescribed form containing prescribed information referred to in subsection (2) in respect of the amount on or before the later of December 31, 2026 and the day that is one year after the taxpayer’s filing-due date for the year and, if the prescribed form is filed after the taxpayer’s filing-due date for the year, no payment by the taxpayer is deemed to arise under that subsection until the prescribed form containing the prescribed information has been filed with the Minister.

• Marginal note:Time of acquisition

  (4) For the purpose of this section, clean technology property is deemed not to have been acquired by a taxpayer before the property is considered to have become available for use by the taxpayer, determined without reference to paragraphs 13(27)(c) and (28)(d).

• Marginal note:Special rules — adjustments

  (5) For the purpose of the definition clean technology investment tax credit in subsection (1), the capital cost of clean technology property to a taxpayer shall

  • (a) not include any amount

    • (i) in respect of which an amount was previously deducted under this section by any person,

    • (ii) in respect of which any other clean economy tax credit (as defined in subsection 127.47(1)) was deducted by any person,

    • (ii.1) in respect of any part of the capital cost of a property if a CCUS tax credit (as defined in subsection 127.44(1)) or a clean hydrogen tax credit (as defined in subsection 127.48(1)) was deducted by any person in respect of that property,

    • (iii) that has, by virtue of section 21, been added to the cost of a property, or

    • (iv) that is in respect of an expenditure incurred for a preliminary work activity;

  • (b) be determined without reference to subsections 13(7.1) and (7.4);

  • (b.1) be reduced by the total of all amounts, each of which can reasonably be considered to be in respect of the property and is

    • (i) an amount of any government assistance or non-government assistance received by the taxpayer in or before the taxation year in which the property was acquired, or

    • (ii) an amount not described in subparagraph (i) that, in the taxation year, the taxpayer is entitled to or can reasonably be expected to receive and that would be government assistance or non-government assistance if it were received by the taxpayer;

  • (c) be determined with reference to subsections 127(11.6) to (11.8) in respect of an expenditure or cost to a taxpayer except that

    • (i) the reference in subsection 127(11.6) to subsection 127(11.5) is to be read as a reference to section 127.45,

    • (ii) the reference in subsection 127(11.6) to subsection 127(26) is to be read as a reference to subsection 127.45(9), and

    • (iii) the term “qualified expenditure” is to be read as an expenditure eligible to be added to the capital cost of a clean technology property.

• Marginal note:Environmental compliance

  (5.1) A property that would otherwise be clean technology property of a qualifying taxpayer is deemed not to be a clean technology property of the taxpayer if, at the time the property becomes available for use by the taxpayer, there is substantial non-compliance by the taxpayer with the requirements of any environmental law, by-law or regulation of Canada, a province, a municipality, or a municipal or public body performing a function of government in Canada that is applicable in respect of the property.

• Marginal note:Compliance — reasonable efforts

  (5.2) The following rules apply in respect of a qualifying taxpayer’s property described in subparagraph (d)(viii) of the definition clean technology property in subsection (1):

  • (a) where the property is temporarily operated in a manner that is a non-clean technology use solely because of a deficiency, failing or shutdown of the system of which it is a part, and that deficiency, failing or shutdown is beyond the control of the taxpayer, the property is deemed, for the purposes of subsections (11), (12), (16) and (17), not to be operated in a manner that is a non-clean technology use during the period of the deficiency, failing or shutdown, if the taxpayer makes all reasonable efforts to rectify the circumstances within a reasonable time; and

  • (b) for the purpose of paragraph (a), the system referred to in that paragraph may include property of another person or partnership if

    • (i) the property would reasonably be considered to be part of the system if the property were owned by the taxpayer,

    • (ii) the property utilizes electrical energy or heat energy obtained from the system,

    • (iii) the operation of the property is necessary for the system to avoid operation in a manner that is a non-clean technology use, and

    • (iv) at the time the system first became operational, the deficiency, failing or shutdown in the operation of the property could not reasonably have been anticipated to occur within five calendar years after that time.

• Marginal note:Deemed deduction

  (6) For the purposes of this section, paragraph 12(1)(t), subsection 13(7.1), the description of I in the definition undepreciated capital cost in subsection 13(21) and subsection 53(2) and sections 127.44, 127.48, 127.49, 127.491 and 129, the amount deemed under subsection (2) to have been paid by a taxpayer for a taxation year is deemed to have been deducted from the taxpayer’s tax otherwise payable under this Part for the year.

• Marginal note:Repayment of assistance

  (7) Where a taxpayer has, in a particular taxation year, repaid (or has not received and can no longer reasonably be expected to receive) an amount of government assistance or non-government assistance that was applied to reduce the cost of a particular property under paragraph (5)(b.1) for a preceding taxation year, the amount repaid (or no longer expected to be received) is to be added to the cost to the taxpayer of a separate clean technology property that is deemed to be acquired in the particular year for the purposes of this section, provided that a transaction or event described in paragraph (11)(c) has not occurred in respect of the particular property.

• Marginal note:Partnerships

  (8) Subject to section 127.47, where, in a particular taxation year of a taxpayer who is a member of a partnership, an amount would be determined under subsection (2) in respect of the partnership, for its taxation year that ends in the particular year, if the partnership were a taxable Canadian corporation and its fiscal period were its taxation year, the portion of that amount that can reasonably be considered to be the taxpayer’s share thereof shall be added in computing the clean technology investment tax credit of the taxpayer at the end of the particular year.

• Marginal note:Unpaid amounts

  (9) For the purposes of this section, where any part of the capital cost of a taxpayer’s particular clean technology property is unpaid on the day that is 180 days after the end of the taxation year in which a deduction in respect of a clean technology investment tax credit would otherwise be available in respect of the particular property, such amount is to be

  • (a) excluded from the capital cost of the particular property in the year; and

  • (b) added to the capital cost of a separate clean technology property that is deemed to be acquired at the time the amount is paid, provided that a transaction or event described in paragraph (11)(c) has not occurred in respect of the particular property.

• Marginal note:Tax shelter investment

  (10) Subsection (2) does not apply if a clean technology property — or an interest in a person or partnership that has, directly or indirectly, an interest in, or for civil law, a right in, such property — is a tax shelter investment for the purpose of section 143.2.

• Marginal note:Recapture — conditions for application

  (11) Subsection (12) applies in a taxation year if

  • (a) a taxpayer acquired a clean technology property in the year or any of the preceding 10 calendar years;

  • (b) the taxpayer became entitled to a clean technology investment tax credit in respect of the capital cost, or a portion of the capital cost, of the particular property; and

  • (c) in the year, the particular property (or another property that incorporates the particular property) is converted to a non-clean technology use, is exported from Canada or is disposed of without having been previously exported or converted to a non-clean technology use.

• Marginal note:Recapture of credit

  (12) If this subsection applies, there shall be added to the taxpayer’s tax otherwise payable under this Part for the year the lesser of

  • (a) the amount of the taxpayer’s clean technology investment tax credit in respect of the particular property, and

  • (b) the amount determined by the formula

    A × (B ÷ C)

    where

    A

    is the amount of the taxpayer’s clean technology investment tax credit in respect of the particular property,

    B

    is

    • (i) in the case where the particular property is disposed of to a person who deals at arm’s length with the taxpayer, the proceeds of disposition of the property, or

    • (ii) in the case where the particular property is disposed of to a person who does not deal at arm’s length with the taxpayer, is converted to a non-clean technology use or is exported from Canada, the fair market value of the property, and

    C

    is the capital cost of the particular property on which the clean technology investment tax credit was deducted.

• Marginal note:Certain non-arm’s length transfers

  (13) Subsections (11) and (12) do not apply to a taxpayer that is a taxable Canadian corporation (in this subsection referred to as the “transferor”) that disposes of a property to another taxable Canadian corporation (in this subsection referred to as the “purchaser”) related to the transferor if the purchaser acquired the property in circumstances where the property would be clean technology property to the purchaser but for paragraph (b) of that definition.

• Marginal note:Certain non-arm’s length transfers — recapture deferred

  (14) If subsection (13) applies, subsection 127(34) applies with such modifications as the circumstances require, including that the reference to subsection 127(33) be read as a reference to subsection 127.45(13).

• Marginal note:Recapture event reporting requirement

  (15) If subsection (11) or (13) applies to a taxpayer for a particular year, the taxpayer shall notify the Minister in prescribed form and manner on or before the taxpayer’s filing-due date for the year.

• Marginal note:Recapture of credit for partnerships

  (16) Subsection (17) applies in a fiscal period of a partnership if

  • (a) the partnership acquired a particular clean technology property in the fiscal period or in any of the 10 preceding calendar years;

  • (b) the cost, or a portion of the cost, of the particular property is included in an amount, a percentage of which can reasonably be considered to have been included in computing the amount determined under subsection (8) in respect of the partnership at the end of a fiscal period; and

  • (c) in the fiscal period, the particular property (or another property that incorporates the particular property) is converted to a non-clean technology use, is exported from Canada or is disposed of without having been previously exported or converted to a non-clean technology use.

• Marginal note:Addition to tax

  (17) If this subsection applies to a fiscal period of a partnership, where a taxpayer is a member of the partnership during the fiscal period, there shall be added to the taxpayer’s tax otherwise payable under this Part for the taxpayer’s taxation year in which the fiscal period ends the amount that can reasonably be considered to be the taxpayer’s share of the amount, if any, equal to the lesser of

  • (a) the amount that can reasonably be considered to have been included in respect of the particular property in computing the amount determined under subsection (8) in respect of the partnership, and

  • (b) the percentage described in paragraph (16)(b) of

    • (i) where the particular property (or the other property) is disposed of to a person who deals at arm’s length with the partnership, the proceeds of disposition of the property, and

    • (ii) in any other case, the fair market value of the particular property (or the other property) at the time of the conversion, export or disposition.

• Marginal note:Information return — partnerships

  (18) If subsections (16) and (17) apply with respect to the property of a partnership for a particular fiscal period, the partnership shall notify the Minister in prescribed form and manner on or before the day when a return is required by section 229 of the Income Tax Regulations to be filed in respect of the period.

• Marginal note:Election by member to pay tax

  (18.1) A qualifying taxpayer that is a member of a partnership during a fiscal period of the partnership may elect, in prescribed form and manner, to add to its tax payable under this Part for its taxation year that includes the end of the fiscal period the total amount of tax determined for that fiscal period because of subsections (16) and (17) in respect of the partnership.

• Marginal note:Joint and several, or solidary, liability

  (18.2) Each current or former member of a partnership is jointly and severally, or solidarily, liable for any portion of the amount of tax — determined because of subsections (16) and (17) in respect of the partnership for a fiscal period — that is not added to the tax payable

  • (a) of a qualifying taxpayer under subsection (17); or

  • (b) of a qualifying taxpayer because of subsection (18.1) and paid by the qualifying taxpayer by its filing-due date for its taxation year that includes the end of the fiscal period.

• Marginal note:Former member liability

  (18.3) If a particular taxpayer was, at the time that an amount is determined because of subsections (16) and (17) in respect of a property of the partnership for a taxation year, no longer a member of the partnership, the particular taxpayer’s liability for tax because of subsection (18.2) is limited to the total of all amounts each of which is an amount determined for the particular taxpayer under subsection (2) in respect of the property because of its membership in the partnership.

• Marginal note:Clean technology investment tax credit — purpose

  (19) The purpose of this section is to encourage the investment of capital in the adoption and operation of clean technology property in Canada.

• Marginal note:Authority of the Minister of Natural Resources

  (20) For the purpose of determining whether a property is a clean technology property, any technical guide, published by the Department of Natural Resources and as amended from time to time, is to apply conclusively with respect to engineering and scientific matters.