Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

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

Full Document:  

Regulations are current to 2022-11-16 and last amended on 2022-06-23. Previous Versions

PART XLIIIInterest Rates (continued)

Prescribed Rate of Interest (continued)

 Notwithstanding section 4301, for the purposes of paragraph 16.1(1)(d) of the Act and subsection 1100(1.1), the interest rate in effect during any month is the rate that is one percentage point greater than the rate that was, during the month before the immediately preceding month, the average yield, expressed as a percentage per year rounded to two decimal points, prevailing on all outstanding domestic Canadian-dollar Government of Canada bonds on the last Wednesday of that month with a remaining term to maturity of over 10 years, as first published by the Bank of Canada.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/91-196, s. 4

PART XLIVPublicly-traded Shares or Securities

  •  (1) For the purposes of section 24 and subsection 26(11) of the Income Tax Application Rules,

    • (a) a share or security named in Schedule VII is hereby prescribed to be a publicly-traded share or security; and

    • (b) for each such share or security, the amount set out in Column II of Schedule VII opposite that share or security is hereby prescribed as the amount, if any, prescribed in respect of that property.

  • (2) In Schedule VII, the abbreviation

    • (a) “Cl” means “Class”;

    • (b) “Com” means “Common”;

    • (c) “Cv” means “Convertible”;

    • (d) “Cu” means “Cumulative”;

    • (e) “Pc” means “Per Cent”;

    • (f) “Pr” means “Preferred” or “Preference” as the case may be;

    • (g) “Pt” means “Participating”;

    • (h) “Rt” means “Right”; and

    • (i) “Wt” means “Warrant”.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/94-686, s. 48

PART XLVElections in Respect of Expropriation Assets

 Any election by a taxpayer under subsection 80.1(1), (2), (4), (5), (6) or (9) of the Act shall be made on or before the day on or before which the return of income is required to be filed pursuant to section 150 of the Act for the taxation year in which the assets referred to in the particular election were acquired by him.

PART XLVIInvestment Tax Credit

Qualified Property

[
  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/80-131, s. 1
]
  •  (1) Property is a prescribed building for the purposes of the definitions qualified property and qualified resource property in subsection 127(9) of the Act if it is depreciable property of the taxpayer that is a building or grain elevator and it is erected on land owned or leased by the taxpayer,

    • (a) that is included in Class 1, 3, 6, 20, 24 or 27 or paragraph (c), (d) or (e) of Class 8 in Schedule II; or

    • (b) that is included or would, but for Class 28, 41, 41.1 or 41.2 in Schedule II, be included in paragraph (g) of Class 10 in Schedule II.

  • (2) Property is prescribed machinery and equipment for the purposes of the definitions qualified property and qualified resource property in subsection 127(9) of the Act if it is depreciable property of the taxpayer (other than property referred to in subsection (1)) that is

    • (a) a property included in paragraph (k) of Class 1 or paragraph (a) of Class 2 in Schedule II;

    • (b) an oil or water storage tank;

    • (c) a property included in Class 8 in Schedule II (other than railway rolling stock);

    • (d) a vessel, including the furniture, fittings and equipment attached thereto;

    • (e) a property included in paragraph (a) of Class 10 or Class 22 or 38 in Schedule II (other than a car or truck designed for use on highways or streets);

    • (f) notwithstanding paragraph (e), a logging truck acquired after March 31, 1977 to be used in the activity of logging and having a weight, including the weight of property the capital cost of which is included in the capital cost of the truck at the time of its acquisition (but for greater certainty not including the weight of fuel), in excess of 16,000 pounds;

    • (g) a property included in any of paragraphs (b) to (f), (h), (j), (k), (o), (r), (t) or (u) of Class 10 in Schedule II, or property included in paragraph (b) of Class 41 in Schedule II and that would otherwise be included in paragraph (j), (k), (r), (t) or (u) of Class 10 in Schedule II;

    • (h) a property included in paragraph (n) of Class 10, or Class 15, in Schedule II (other than a roadway);

    • (i) a property included in any of paragraphs (a) to (f) of Class 9 in Schedule II;

    • (j) a property included in Class 28, in paragraph (a), (a.1), (a.2) or (a.3) of Class 41 or in Class 41.1 or 41.2 in Schedule II that would, but for Class 28, 41, 41.1 or 41.2, as the case may be, be included in paragraph (k) or (r) of Class 10 of Schedule II;

    • (k) a property included in Class 21, 24, 27, 29, 34, 39, 40, 43, 45, 46, 50, 52 or 53 in Schedule II;

    • (l) a property included in paragraph (c) or (d) of Class 41 in Schedule II;

    • (m) property included in Class 43.1 in Schedule II because of paragraph (c) of that Class; or

    • (n) a property included in Class 43.2 in Schedule II because of paragraph (a) of that Class.

  • (3) Property is prescribed energy generation and conservation property for the purposes of the definition qualified property in subsection 127(9) of the Act if it is depreciable property of the taxpayer (other than property referred to in subsection (1) or (2)) that is a property included in any of subparagraph (a.1)(i) of Class 17 and Classes 43.1, 43.2 and 48 in Schedule II.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/78-137, s. 5
  • SOR/80-69, s. 1
  • SOR/80-131, s. 2
  • SOR/80-618, s. 7(E)
  • SOR/81-974, s. 13
  • SOR/88-165, s. 19
  • SOR/90-22, s. 6
  • SOR/94-169, s. 3
  • SOR/94-686, s. 66(F)
  • SOR/98-97, s. 4
  • SOR/99-179, s. 10
  • SOR/2005-371, s. 5
  • SOR/2005-414, s. 4
  • SOR/2006-117, s. 6
  • SOR/2011-9, s. 5
  • 2012, c. 31, s. 66
  • 2013, c. 34, s. 395, c. 40, s. 106
  • 2015, c. 36, s. 22

Qualified Transportation Equipment

 For the purposes of the definition qualified transportation equipment in subsection 127(9) of the Act, the following depreciable property of a taxpayer (other than qualified property as defined by subsection 127(9) of the Act) is prescribed equipment:

  • (a) property that is

    • (i) included in Class 1 in Schedule II by virtue of paragraph (h) or (i) of that Class,

    • (ii) a bridge, culvert, subway or tunnel included in Class 1 in Schedule II that is ancillary to railway track and grading,

    • (iii) a trestle included in Class 3 in Schedule II that is ancillary to railway track and grading,

    • (iv) machinery or equipment included in Class 8 in Schedule II that is ancillary to

      • (A) railway track and grading, or

      • (B) railway traffic control or signalling equipment, including switching, block signalling, interlocking, crossing protection, detection, speed control or retarding equipment, but not including property that is principally electronic equipment or systems software therefor,

    • (v) included in Class 10 in Schedule II by virtue of subparagraph (m)(i), (ii) or (iii) of that Class, or

    • (vi) property described in paragraph (m) of Class 10 in Schedule II (other than property described in subparagraph (iv) thereof) that is included in Class 28 or 41 in Schedule II;

  • (b) property that is

    • (i) included in Class 6 in Schedule II by virtue of paragraph (j) of that Class,

    • (ii) machinery or equipment included in Class 8 in Schedule II that

      • (A) was acquired principally for the purpose of maintaining or servicing, or

      • (B) is ancillary to and used as part of,

      a railway locomotive or railway car, or

    • (iii) included in Class 35 in Schedule II;

  • (c) property that is

    • (i) a truck, tractor or trailer that

      • (A) is included in Class 10 in Schedule II because of paragraph (e) of that Class or in Class 16 in Schedule II because of paragraph (g) of that Class,

      • (B) is designed for the purpose of carrying freight, or hauling a trailer that carries freight, on highways, and

      • (C) [Repealed, SOR/85-696, s. 12]

      • (D) in the case of a truck or tractor, has a “gross vehicle weight rating” (within the meaning assigned that expression by the Motor Vehicle Safety Regulations) of 26,001 pounds or more, and in the case of a trailer, is of a type designed to be hauled under normal operating conditions by a truck or tractor described in this subparagraph,

      but for greater certainty,

      • (E) was not acquired principally for the purpose of carrying or hauling freight locally or making local pickups or deliveries, or

    • (ii) machinery or equipment included in Class 8 or 10 in Schedule II that is ancillary to and used as part of any property described in subparagraph (i) that is qualified transportation equipment within the meaning of subsection 127(9) of the Act;

  • (d) property included in Class 10 in Schedule II by virtue of paragraph (a) of that Class that is a bus designed for the purpose of seating 20 or more passengers and carrying their luggage, but not including

    • (i) a bus acquired principally for the purpose of transportation within any metropolitan area, city, town, village, municipality or other similar community or area, or

    • (ii) a school bus;

  • (e) property that is

    • (i) a vessel included in Class 7 in Schedule II (other than a vessel under construction),

    • (ii) machinery or equipment included in Class 7 or 8 in Schedule II that is ancillary to and used as part of any property described in subparagraph (i) that is qualified transportation equipment within the meaning of subsection 127(9) of the Act, or

    • (iii) a vessel included in a separate class prescribed by subsection 1101(2a);

  • (f) property that is

    • (i) included in Class 9 in Schedule II by virtue of paragraph (g) of that Class, or

    • (ii) machinery or equipment included in Class 9 in Schedule II by virtue of paragraph (h) or (i) of that Class that is ancillary to and used as part of any property described in subparagraph (i) that is qualified transportation equipment within the meaning of subsection 127(9) of the Act; and

  • (g) property included in Class 8 in Schedule II that is a reusable cargo container designed with external fittings for the purpose of handling, securing or stacking and having a carrying capacity of 500 cubic feet or more.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/80-131, s. 3
  • SOR/85-696, s. 12
  • SOR/88-165, s. 20
  • SOR/90-22, s. 7
  • SOR/92-681, s. 3(F)
  • SOR/95-244, s. 4
  • SOR/2005-371, s. 6(F)
  • SOR/2010-93, s. 21(F)

Certified Property

  •  (1) For the purposes of the definition certified property in subsection 127(9) of the Act, each of the following areas is a prescribed area:

    • (a) that portion of the Province of Newfoundland comprising the census divisions 2 to 4 and 7 to 10;

    • (b) that portion of the Province of Prince Edward Island comprising the Kings census division;

    • (c) that portion of the Province of Nova Scotia comprising the census divisions of

      • (i) Cape Breton,

      • (ii) Guysborough,

      • (iii) Inverness,

      • (iv) Richmond, and

      • (v) Victoria;

    • (d) that portion of the Province of New Brunswick comprising the census divisions of

      • (i) Gloucester,

      • (ii) Kent,

      • (iii) Madawaska,

      • (iv) Northumberland, and

      • (v) Restigouche;

    • (e) that portion of the Province of Quebec comprising

      • (i) all of the area north of the 50th parallel of latitude, other than the area within the limits of the city of Sept-Iles,

      • (ii) the Magdalen Islands, and

      • (iii) the census divisions of

        • (A) Bonaventure,

        • (B) Gaspé-Est,

        • (C) Gaspé-Ouest,

        • (D) Matane,

        • (E) Matapédia,

        • (F) Rimouski, other than the area within the limits of the city of Rimouski,

        • (G) Rivière-du-Loup, and

        • (H) Témiscouata;

    • (f) that portion of the Province of Ontario that is north of the 50th parallel of latitude;

    • (g) that portion of the Province of Manitoba comprising the census divisions 19 and 21 to 23, other than the area within the limits of the city of Thompson;

    • (h) that portion of the Province of Saskatchewan comprising the census division of Northern Saskatchewan;

    • (i) that portion of the Province of Alberta comprising the census division of Peace River, other than the area within the limits of the city of Grande Prairie;

    • (j) that portion of the Province of British Columbia comprising the Peace River-Liard census division; and

    • (k) all of the Yukon Territory and the Northwest Territories.

  • (2) For the purposes of subsection (1), the expression “census divisions” has the same meaning as in the Dictionary of 1971 Census Terms, Statistics Canada Catalogue Number 12-540, and the Census Divisions and Subdivisions, Statistics Canada Catalogues Numbered 92-704, 92-705, 92-706 and 92-707.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/81-880, s. 1
  • SOR/86-1092, s. 11(F)
  • SOR/88-165, s. 21

Qualified Construction Equipment

 For the purposes of the definition qualified construction equipment in subsection 127(9) of the Act, prescribed equipment means depreciable property of a taxpayer, other than qualified property as defined by subsection 127(9) of the Act or qualified transportation equipment as defined by subsection 127(9) of the Act, that is

  • (a) a property included in Class 22 or 38 in Schedule II;

  • (b) a crane;

  • (c) a pile driver; or

  • (d) a dredge.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/85-696, s. 13
  • SOR/88-165, s. 22
  • SOR/90-22, s. 8
 
Date modified: