Income Tax Act

Marginal note:Definitions

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

  at-risk amount

  at-risk amount has the meaning assigned by subsection 96(2.2). (fraction à risques)

  clean economy allocation provision

  clean economy allocation provision means

  • (a) subsection 127.44(11);

  • (b) subsection 127.45(8);

  • (c) subsection 127.48(12);

  • (d) subsection 127.49(8); or

  • (e) subsection 127.491(12). (disposition d’allocation pour l’économie propre)

  clean economy expenditure

  clean economy expenditure means

  • (a) a qualified CCUS expenditure as determined under section 127.44;

  • (b) the capital cost of clean technology property as determined under section 127.45;

  • (c) the capital cost of eligible clean hydrogen property as determined under section 127.48;

  • (d) the capital cost of CTM property as determined under section 127.49; or

  • (e) the capital cost of clean electricity property as determined under section 127.491. (dépense pour l’économie propre)

  clean economy provision

  clean economy provision means

  • (a) this section;

  • (b) section 127.44 and Part XII.7;

  • (c) section 127.45;

  • (d) section 127.46;

  • (e) section 127.48;

  • (f) section 127.49; or

  • (g) section 127.491. (disposition pour l’économie propre)

  clean economy tax credit

  clean economy tax credit means

  • (a) a CCUS tax credit (as defined in subsection 127.44(1));

  • (b) a clean technology investment tax credit (as defined in subsection 127.45(1));

  • (c) a clean hydrogen tax credit (as defined under section 127.48(1));

  • (d) a CTM investment tax credit (as defined under section 127.49(1)); or

  • (e) a clean electricity investment tax credit (as defined in subsection 127.491(1)). (crédit d’impôt pour l’économie propre)

  limited partner

  limited partner has the meaning assigned by subsection 96(2.4) if that subsection were read without reference to “if the member’s partnership interest is not an exempt interest (within the meaning assigned by subsection (2.5)) at that time and”. (commanditaire)

• Marginal note:Credits in unreasonable proportions

  (2) If the members of a partnership agree to share the amount of a clean economy tax credit of the partnership and the share of any member of that amount is not reasonable in the circumstances having regard to the capital invested in or work performed for the partnership by the members of the partnership or such other factors as may be relevant, that share shall, notwithstanding any agreement, be deemed to be the amount that is reasonable in the circumstances.

• Marginal note:Limited partners

  (3) Notwithstanding subsection (2), if a taxpayer is a limited partner of a partnership at the end of a fiscal period of the partnership, the total of all clean economy tax credits allocated to the taxpayer by the partnership in respect of that fiscal period shall not exceed the taxpayer’s at-risk amount in respect of the partnership at the end of that fiscal period.

• Marginal note:Apportionment rule

  (4) The amount required by any clean economy allocation provision to be added in computing a particular clean economy tax credit of a taxpayer in respect of a partnership for the taxation year in which the partnership’s fiscal period ends is deemed to be the portion of the amount otherwise determined under this section in respect of the taxpayer that is reasonably attributable to each particular clean economy tax credit.

• Marginal note:Multiple tax credits

  (4.1) If the cost of a particular property of a partnership is eligible for more than one clean economy tax credit, the partnership may allocate each of those clean economy tax credits to the members of the partnership in accordance with this section and the clean economy allocation provisions, except that no member of the partnership is entitled to more than one clean economy tax credit in respect of that property unless the tax credits are the CCUS tax credit (as defined in subsection 127.44(1)) and the clean hydrogen tax credit (as defined in subsection 127.48(1)) to the extent provided under sections 127.44 and 127.48.

• Marginal note:Assistance received by member of partnership

  (5) For the purposes of computing a clean economy tax credit, if, at a particular time, a taxpayer that is a member of a partnership has received, is entitled to receive or can reasonably be expected to receive government assistance or non-government assistance (as defined in subsection 127(9)), the amount of that assistance that may reasonably be considered to be in respect of a clean economy expenditure of the partnership shall be deemed to have been received at that time by the partnership as government assistance or non-government assistance, as the case may be, in respect of the expenditure.

• Marginal note:Credit received by member of partnership

  (6) For the purposes of subsection 13(7.1), if, pursuant to an allocation from a partnership under a clean economy allocation provision, an amount is added in computing a clean economy tax credit of a taxpayer at the end of the taxpayer’s taxation year, the amount shall be deemed to have been received by the partnership at the end of its fiscal period in respect of which the allocation was made as assistance from a government for the acquisition of depreciable property.

• Marginal note:Tiered partnerships

  (7) For the purposes of each clean economy provision, a person or partnership that is (or is deemed by this subsection to be) a member of a particular partnership that is a member of another partnership is deemed to be a member of the other partnership.