Jobs and Growth Act, 2012 (S.C. 2012, c. 31)

• (i) for or on behalf of a person or partnership entitled to a deduction in respect of the amount because of subparagraph 37(1)(a)(i.01) or (i.1), and

• (b) an amount in respect of an expenditure of a current nature (within the meaning assigned by paragraph 37(8)(d)) of a taxpayer, other than a prescribed amount, payable by a Canadian government or municipality or other Canadian public authority or by a person exempt, because of section 149, from tax under this Part on all or part of the person’s taxable income for scientific research and experimental development to be performed for it or on its behalf;

“first term shared-use-equipment”

« matériel à vocations multiples de première période »

“first term shared-use-equipment”, of a taxpayer, means depreciable property of the taxpayer (other than prescribed depreciable property of a taxpayer) acquired before 2014 that is used by the taxpayer, during its operating time in the period (in this subsection and subsection (11.1) referred to as the “first period”) beginning at the time the property was acquired by the taxpayer and ending at the end of the taxpayer’s first taxation year ending at least 12 months after that time, primarily for the prosecution of scientific research and experimental development in Canada, but does not include general purpose office equipment or furniture;

• (a) the total of all amounts each of which is the specified percentage of the capital cost to the taxpayer of qualified property or qualified resource property acquired by the taxpayer in the year,

• (a.1) 15% of the amount by which the taxpayer’s SR&ED qualified expenditure pool at the end of the year exceeds the total of all amounts each of which is the super-allowance benefit amount for the year in respect of the taxpayer in respect of a province,

• (a.3) if the taxpayer is a taxable Canadian corporation, the total of

  • (i) the specified percentage of the portion of the taxpayer’s pre-production mining expenditure described in subparagraph (a)(i) of the definition “pre-production mining expenditure”, and

  • (ii) the specified percentage of the portion of the taxpayer’s pre-production mining expenditure described in subparagraph (a)(ii) of the definition “pre-production mining expenditure”,

• (a) is a Canadian exploration expense and would be

  • (i) described in paragraph (f) of the definition “Canadian exploration expense” in subsection 66.1(6) if the expression “mineral resource” in that paragraph were defined to mean a mineral deposit from which the principal mineral to be extracted is diamond, a base or precious metal deposit, or a mineral deposit from which the principal mineral to be extracted is an industrial mineral that, when refined, results in a base or precious metal, or

  • (ii) described in paragraph (g), and not in paragraph (f), of the definition “Canadian exploration expense” in subsection 66.1(6) if the expression “mineral resource” in paragraph (g) were defined to mean a mineral deposit from which the principal mineral to be extracted is diamond, a base or precious metal deposit, or a mineral deposit from which the principal mineral to be extracted is an industrial mineral that, when refined, results in a base or precious metal, and

• (a) an amount that is an expenditure incurred in the year by the taxpayer in respect of scientific research and experimental development and is

  • (i) an expenditure described in subparagraph 37(1)(a)(i),

  • (ii) 80% of an expenditure described in any of subparagraphs 37(1)(a)(i.01) to (iii),

  • (iii) an expenditure for first term shared-use-equipment or second term shared-use-equipment, or

  • (iv) an expenditure described in subparagraph 37(1)(b)(i), or

• (b) a prescribed proxy amount of the taxpayer for the year,

“qualified property”

« bien admissible »

“qualified property”, of a taxpayer, means property (other than a qualified resource property) that is

• (b.1) prescribed energy generation and conservation property acquired by the taxpayer after March 28, 2012,

• (iv) storing grain, or

• (v) harvesting peat,

• (c.1) property (other than property described in paragraph (b.1)) to be used by the taxpayer in Canada primarily for the purpose of producing or processing electrical energy or steam in a prescribed area, if

• (d) to be leased by the taxpayer to a lessee (other than a person exempt from tax under this Part because of section 149) who can reasonably be expected to use the property in Canada primarily for any of the purposes referred to in paragraph (c), but this paragraph does not apply to property that is prescribed for the purposes of paragraph (b) or (b.1) unless

• (a.1) in respect of a qualified resource property acquired by a taxpayer primarily for use in Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland and Labrador, the Gaspé Peninsula or the prescribed offshore region, and that is acquired

  • (i) after March 28, 2012 and before 2014, 10%,

  • (ii) after 2013 and before 2017, 10% if the property

    • (A) is acquired by the taxpayer under a written agreement of purchase and sale entered into by the taxpayer before March 29, 2012, or

    • (B) is acquired as part of a phase of a project and

      • (I) the construction of the phase was started by, or on behalf of, the taxpayer before March 29, 2012 (and for this purpose construction does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities), or

      • (II) the engineering and design work for the construction of the phase, as evidenced in writing, was started by, or on behalf of, the taxpayer before March 29, 2012 (and for this purpose engineering and design work does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities), and

  • (iii) in any other case,

    • (A) in 2014 and 2015, 5%, and

    • (B) after 2015, 0%,

• (j) in respect of a pre-production mining expenditure of the taxpayer that is described in subparagraph (a)(i) of the definition “pre-production mining expenditure” and that is incurred

  • (i) before 2013, 10%,

  • (ii) in 2013, 5%, and

  • (iii) after 2013, 0%, and

• (k) in respect of a pre-production mining expenditure of the taxpayer that is described in subparagraph (a)(ii) of the definition “pre-production mining expenditure” and that is incurred

  • (i) before 2014, 10%,

  • (ii) after 2013 and before 2016, 10% if the expenditure is incurred

    • (A) under a written agreement entered into by the taxpayer before March 29, 2012, or

    • (B) as part of the development of a new mine and

      • (I) the construction of the mine was started by, or on behalf of, the taxpayer before March 29, 2012 (and for this purpose construction does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities), or

      • (II) the engineering and design work for the construction of the mine, as evidenced in writing, was started by, or on behalf of, the taxpayer before March 29, 2012 (and for this purpose engineering and design work does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities), and

  • (iii) in any other case,

    • (A) in 2014, 7%,

    • (B) in 2015, 4%, and

    • (C) after 2015, 0%;

“phase”

« phase »

“phase”, of a project, means a discrete expansion in the extraction, processing or production capacity of the project of a taxpayer beyond a capacity level that was attained before March 29, 2012 and which expansion in capacity was the taxpayer’s demonstrated intention immediately before that date;

“qualified resource property”

« bien minier admissible »

“qualified resource property”, of a taxpayer, means property that is a prescribed building or prescribed machinery and equipment, that is acquired by the taxpayer after March 28, 2012, that has not been used, or acquired for use or lease, for any purpose whatever before it was acquired by the taxpayer and that is

• (a) to be used by the taxpayer in Canada primarily for the purpose of

  • (i) operating an oil or gas well or extracting petroleum or natural gas from a natural accumulation of petroleum or natural gas,

  • (ii) extracting minerals from a mineral resource,

  • (iii) processing

    • (A) ore (other than iron ore or tar sands ore) from a mineral resource to any stage that is not beyond the prime metal stage or its equivalent,

    • (B) iron ore from a mineral resource to any stage that is not beyond the pellet stage or its equivalent, or

    • (C) tar sands ore from a mineral resource to any stage that is not beyond the crude oil stage or its equivalent,

  • (iv) producing industrial minerals,

  • (v) processing heavy crude oil recovered from a natural reservoir in Canada to a stage that is not beyond the crude oil stage or its equivalent,

  • (vi) Canadian field processing,

  • (vii) exploring or drilling for petroleum or natural gas, or

  • (viii) prospecting or exploring for or developing a mineral resource, or

• (b) to be leased by the taxpayer to a lessee (other than a person exempt from tax under this Part because of section 149) who can reasonably be expected to use the property in Canada primarily for any of the purposes referred to in paragraph (a), but this paragraph does not apply to prescribed machinery and equipment unless

  • (i) the property is leased in the ordinary course of carrying on a business in Canada by a corporation whose principal business is any of, or a combination of, 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,

  • (ii) the property is manufactured and leased in the ordinary course of carrying on business in Canada by a corporation whose principal business is manufacturing property that it sells or leases, or

  • (iii) the property is leased in the ordinary course of carrying on business in Canada by a corporation the principal business of which is selling or servicing property of that type,

and, for the purpose of this definition, “Canada” includes the offshore region prescribed for the purpose of the definition “specified percentage”;

• Marginal note:Additions to investment tax credit

  (10.1) For the purposes of paragraph (e) of the definition “investment tax credit” in subsection (9), if a corporation was throughout a taxation year a Canadian-controlled private corporation, there shall be added in computing the corporation’s investment tax credit at the end of the year the amount that is 20% of the least of

• Marginal note:Interpretation

  (11) For the purposes of the definitions “qualified property” and “qualified resource property” in subsection (9),

• (b) for greater certainty, the purposes referred to in paragraph (c) of the definition “qualified property” and paragraph (a) of the definition “qualified resource property” in subsection (9) do not include

• (a) qualified property, qualified resource property and first term shared-use-equipment are deemed not to have been acquired, and

• (a) qualified property and qualified resource property are deemed not to have been acquired, and

• (b) expenditures included in an eligible child care space expenditure are deemed not to have been incurred

• (a) the amount of an expenditure (other than a prescribed proxy amount or an amount described in paragraph (b)) incurred by a taxpayer in a taxation year is deemed to be the amount of the expenditure determined under subsection (11.6); and

• Marginal note:Adjustments to qualified expenditures

  (11.5) For the purposes of the definition “qualified expenditure” in subsection (9), the amount of an expenditure (other than a prescribed proxy amount) incurred by a taxpayer in a taxation year is deemed to be the amount of the expenditure determined under subsection (11.6).

the amount of the expenditure incurred by the taxpayer for the service or property and the cost to the taxpayer of the property are deemed to be

• (i) the cost to the taxpayer of the property otherwise determined, and

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

  (33) Subsections (27) to (29), (34) and (35) do not apply to a taxpayer or partnership (in this subsection referred to as the “transferor”) that disposes of a property to a person or partnership (in this subsection and subsections (34) and (35) referred to as the “purchaser”), that does not deal at arm’s length with the transferor, if the purchaser acquired the property in circumstances where the cost of the property to the purchaser would have been an expenditure of the purchaser described in subclause 37(8)(a)(ii)(A)(III) or (B)(III) (as those subclauses read on March 29, 2012) but for subparagraph 2902(b)(iii) of the Income Tax Regulations.