Regional Development Incentives Regulations, 1974 (C.R.C., c. 1388)

2 (1) In these Regulations,

Act

Act means the Regional Development Incentives Act; (Loi)

eligible assets

eligible assets means the assets approved by the Minister as forming the whole or a part of a facility or commercial facility but does not include

• (a) land,

• (b) passenger motor vehicles as determined by the Minister,

• (c) means of transportation other than passenger motor vehicles as determined by the Minister that, in the opinion of the Minister, are not used primarily for the facility or commercial facility,

• (d) assets that, in the opinion of the Minister, are normally considered to be a charge against income in the year in which they are acquired, and

• (e) patents, franchises, copyrights and goodwill; (actif admissible)

equity

equity means the aggregate of

• (a) the share capital,

• (b) earned surplus,

• (c) contributed surplus,

• (d) other surplus or deficit accounts,

• (e) shareholders’ loans that are subordinated to all other liabilities, and

• (f) the proprietor’s or partner capital accounts, less such accounts as, in the opinion of the Minister, unreasonably inflate the net worth of the applicant; (capital effectif)

lessor

lessor means a lessor that is a company incorporated in Canada and subject to Canadian income tax law and that is the owner of assets leased to an applicant. (bailleur)

(2) For the purposes of the Act and these Regulations,

commercial operation

commercial operation means any commercial undertaking other than

• (a) an initial processing operation or any operation described in paragraphs (a) to (d) of the definition initial processing operation,

• (b) a manufacturing or processing operation or any operation described in paragraphs (a) to (l) of the definition manufacturing or processing operation, or

• (c) an operation in a resource-based industry; (entreprise commerciale)

initial processing operation

initial processing operation means an operation the product of which is a fossil fuel or a material mainly used for further processing or manufacturing, and includes the refining of petroleum, the production of newsprint and the processing of ores to form mineral concentrates, but does not include

• (a) the processing by roasting, leaching or smelting of mineral concentrates to produce metals,

• (b) the processing of wood by the sulphite process into bleached sulphite pulp in a pulp mill that prior to January 1, 1972 produced dissolving and high alpha cellulose pulp on a regular basis,

• (c) the converting of wood pulp into paperboard or paper other than newsprint, or

• (d) the processing, other than petroleum refining, of a product resulting in a significant chemical change in the principal material used; (entreprise de transformation initiale)

manufacturing or processing operation

manufacturing or processing operation means an operation whereby any goods, products, commodities or wares are created, fabricated, refined or made more marketable, but does not include

• (a) the merchandising of any goods, products, commodities or wares except where they are products of, and their merchandising is integral with, an operation whereby they are created, fabricated, refined or made more marketable,

• (b) the growing, catching or harvesting of any natural or cultivated product of nature,

• (c) the extracting of minerals by any method,

• (d) the production of energy except as an integral part of and solely for use in an operation whereby any goods, products, commodities or wares are created, fabricated, refined or made more marketable,

• (e) the mixing of concrete or asphalt if, in the opinion of the Minister, such operation is carried out to a significant degree for direct application in plastic form to roadway paving or for direct use in construction in metropolitan and surrounding areas,

• (f) salt or potash extraction,

• (g) any mobile manufacturing or processing operation, except where the applicant agrees to use the assets of the operation for a period of at least five years in such area of the designated region as is specified by the Minister,

• (h) construction work,

  • (i) repairing as distinct from rebuilding,

• (j) the rendering of consumer services,

• (k) publishing other than printing, and

  • (l) the manufacture of primary petrochemicals from any source of hydrocarbon including the manufacture of methanol, ethanol, ethylene, propylene, butadiene, butylenes, benzene, toluene, xylenes and ammonia; (entreprise de fabrication ou de transformation)

resource-based industry

resource-based industry means an industry that uses as a principal material a material

• (a) the original location of which is not the consequence of human design, and

• (b) that is in or close to its natural state. (industrie basée sur une ressource naturelle)