I-3 - Taxation Act

Section 1029.8.36.166.40 Disposition versions

2023-03-15

1029.8.36.166.40. In this division,

“aluminum producing corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an aluminum producing business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“eligible expenses” of a corporation for a particular taxation year or of a partnership for a particular fiscal period, in respect of a qualified property, means

(a)  for a corporation, the amount by which the excluded expense amount relating to the qualified property in respect of the corporation for the particular year is exceeded by the aggregate of the following expenses, except expenses incurred with a person with whom the corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the corporation in the particular taxation year to acquire the qualified property that are included, at the end of that year, in the capital cost of the property and that are paid in the particular year,

ii.  the amount by which the expenses incurred by the corporation in the particular taxation year, or in a preceding taxation year for which the corporation was a qualified corporation, to acquire the qualified property that are included, at the end of the particular year or of the preceding year, as the case may be, in the capital cost of the property and that are paid after the end of the particular year or of the preceding year, as the case may be, but not later than 18 months after the end of that year, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the corporation’s eligible expenses in respect of which the corporation would be deemed to have paid an amount to the Minister under section 1029.8.36.166.43 for a taxation year preceding the particular year if that section were read without reference to its third paragraph, and

iii.  the expenses incurred by the corporation to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular taxation year, if the expenses are paid more than 18 months after the end of the corporation’s taxation year in which they were incurred and for which the corporation was a qualified corporation; and

(b)  for a partnership, the amount by which the excluded expense amount relating to the qualified property in respect of the partnership for the particular fiscal period is exceeded by the aggregate of the following expenses, except expenses incurred with a corporation that is a member of the partnership or with a person with whom such a corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the partnership in the particular fiscal period to acquire the qualified property that are included, at the end of that fiscal period, in the capital cost of the property and that are paid in that fiscal period,

ii.  the amount by which the expenses incurred by the partnership in the particular fiscal period, or in a preceding fiscal period for which the partnership was a qualified partnership, to acquire the qualified property that are included, at the end of the particular fiscal period or of the preceding fiscal period, as the case may be, in the capital cost of the property and that are paid after the end of the particular fiscal period or of the preceding fiscal period, as the case may be, but not later than 18 months after the end of that fiscal period, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the partnership’s eligible expenses in respect of which a corporation that is a member of the partnership would be deemed to have paid an amount to the Minister under section 1029.8.36.166.44 for a taxation year preceding that in which the particular fiscal period ends, if that section were read without reference to its third and sixth paragraphs and if, where the corporation was not a qualified corporation for the preceding taxation year, the corporation had been a qualified corporation for the preceding taxation year, and

iii.  the expenses incurred by the partnership to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular fiscal period, if the expenses are paid more than 18 months after the end of the partnership’s fiscal period in which they were incurred and for which the partnership was a qualified partnership;

“excluded corporation” for a taxation year means

(a)  a corporation that is exempt from tax for the year under Book VIII;

(b)  a corporation that would be exempt from tax for the year under section 985, but for section 192;

(c)  an aluminum producing corporation for the year;

(d)  an oil refining corporation for the year; or

(e)  a corporation that was carrying on a recognized business, for the purposes of Division II.6.6.6.1, before 1 April 2008 and, if the taxation year is the one in which the calendar year 2008 or 2009 ends, that has not made an election under section 1029.8.36.72.82.3.1 for the year or a preceding taxation year or, if the taxation year is the one in which the calendar year 2010 ends, that has made an election under section 1029.8.36.72.82.3.1.1 for the year, or that is associated with such a corporation in the year;

“excluded expense amount” relating to qualified property means

(a)  in respect of a corporation, for a taxation year, or a partnership, for a fiscal period, an amount equal to zero, where the qualified property is acquired before 3 December 2014 or after 2 December 2014 pursuant to an obligation in writing entered into on or before 2 December 2014, or where the construction of the qualified property, by or on behalf of the purchaser, has begun on that date;

(b)  in respect of a corporation, for a taxation year, the lesser of the following amounts, where the qualified property is not referred to in paragraph a:

i.  an amount that would be equal to the corporation’s eligible expenses in respect of that property for the taxation year, if the definition of “eligible expenses” were read without reference to “the amount by which the excluded expense amount relating to the qualified property in respect of the corporation for the particular year is exceeded by” in the portion of its paragraph a before subparagraph i, and

ii.  an amount equal to the amount by which the exclusion threshold in respect of the qualified property exceeds the aggregate of all amounts each of which is the excluded expense amount relating to the qualified property in respect of the corporation for each preceding taxation year; and

(c)  in respect of a partnership, for a fiscal period, the lesser of the following amounts, where the qualified property is not referred to in paragraph a:

i.  an amount that would be equal to the partnership’s eligible expenses in respect of that property for the fiscal period, if the definition of “eligible expenses” were read without reference to “the amount by which the excluded expense amount relating to the qualified property in respect of the partnership for the particular fiscal period is exceeded by” in the portion of its paragraph b before subparagraph i, and

ii.  an amount equal to the amount by which the exclusion threshold in respect of the qualified property exceeds the aggregate of all amounts each of which is the excluded expense amount relating to the qualified property in respect of the partnership for each preceding fiscal period;

“excluded partnership” for a fiscal period means a partnership that, at any time in the fiscal period after 13 March 2008, carries on an aluminum producing business or an oil refining business;

“exclusion threshold” in respect of qualified property means an amount equal to $12,500;

“expenses eligible for an additional increase” of a corporation for a taxation year or of a partnership for a fiscal period, in respect of a qualified property, means the portion of the eligible expenses of the corporation for the year or of the partnership for the fiscal period, in respect of the property, that are incurred

(a)  by the corporation in a taxation year for which it is a qualified manufacturing corporation; or

(b)  by the partnership in a fiscal period for which it is a qualified manufacturing partnership;

“expenses eligible for a temporary additional increase” of a corporation for a taxation year or of a partnership for a fiscal period, in respect of a qualified property described in the eighth paragraph, means the portion of the eligible expenses of the corporation for the year or of the partnership for the fiscal period, in respect of the property, that are incurred after 15 August 2018 and before 1 January 2020

(a)  by the corporation in a taxation year for which it is a qualified metal manufacturing sector corporation; or

(b)  by the partnership in a fiscal period for which it is a qualified metal manufacturing sector partnership;

“hydrometallurgy” means any processing of an ore or concentrate that produces a metal, metallic salt or metallic compound by carrying out a chemical reaction in an aqueous or organic solution;

“large investment project” has the meaning assigned by the first paragraph of section 737.18.17.1;

“limit relating to an unused portion” in respect of a corporation for a taxation year means the aggregate of its total taxes for the year and of the amount determined for the year in its respect under the second paragraph of section 1029.8.36.166.42;

“manufacturing or processing salary or wages” in relation to a qualified corporation for a taxation year or a qualified partnership for a fiscal period means the portion of the salary or wages in relation to the qualified corporation for the taxation year or the qualified partnership for the fiscal period that corresponds to the aggregate of all amounts each of which is equal to the result obtained by multiplying the gross revenue of an employee of the corporation or partnership, as the case may be, by the proportion that the employee’s working time spent on manufacturing or processing activities, other than activities listed in section 130R12 of the Regulation respecting the Taxation Act (chapter I-3, r. 1), in the taxation year or fiscal period is of all the employee’s working time in that year or period;

“maximum tax credit amount” of a corporation for a taxation year means the aggregate of the amount by which its total taxes for the year exceed the amount it is deemed to have paid to the Minister for the year under section 1029.8.36.166.46, and of the amount determined for the year in its respect under the first paragraph of section 1029.8.36.166.42;

“metal manufacturing activities” of a corporation or a partnership means the following activities:

(a)  the primary metal manufacturing activities that are included in the group described under code 331 of the North American Industry Classification System (NAICS) Canada, as amended from time to time and published by Statistics Canada; and

(b)  the fabricated metal product manufacturing activities that are included in the group described under code 332 of the publication mentioned in paragraph a;

“metal manufacturing salary or wages” in relation to a qualified corporation for a taxation year or a qualified partnership for a fiscal period means the portion of the salary or wages in relation to the qualified corporation for the taxation year or the qualified partnership for the fiscal period that corresponds to the aggregate of all amounts each of which is equal to the result obtained by multiplying the gross revenue of an employee of the corporation or partnership, as the case may be, by the proportion that the employee’s working time spent on metal manufacturing activities in the taxation year or fiscal period is of all the employee’s working time in that year or period;

“oil refining corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an oil refining business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“proportion of the activities relating to the metal manufacturing sector” of a qualified corporation for a taxation year or of a qualified partnership for a fiscal period means the proportion, expressed as a percentage, that the metal manufacturing salary or wages in relation to the corporation for the taxation year or to the partnership for the fiscal period is of the salary or wages in relation to the corporation for that year or to the partnership for that period;

“qualified corporation” for a taxation year means a corporation, other than an excluded corporation for the year, that, in the year, carries on a business in Québec and has an establishment in Québec;

“qualified manufacturing corporation” for a taxation year means a qualified corporation, for the year, in respect of which the proportion of the manufacturing or processing activities that the manufacturing or processing salary or wages in relation to the corporation for the year is of the salary or wages in relation to the corporation for the year, exceeds 50%;

“qualified manufacturing partnership” for a fiscal period means a qualified partnership, for the fiscal period, in respect of which the proportion of the manufacturing or processing activities that the manufacturing or processing salary or wages in relation to the partnership for the fiscal period is of the salary or wages in relation to the partnership for the fiscal period, exceeds 50%;

“qualified metal manufacturing sector corporation” for a taxation year means a qualified corporation for the year in respect of which the proportion of the activities relating to the metal manufacturing sector for the year exceeds 50%;

“qualified metal manufacturing sector partnership” for a fiscal period means a qualified partnership for the fiscal period in respect of which the proportion of the activities relating to the metal manufacturing sector for that period exceeds 50%;

“qualified partnership” for a fiscal period means a partnership, other than an excluded partnership for the fiscal period, that, in the fiscal period, carries on a business in Québec and has an establishment in Québec;

“qualified property” of a corporation or a partnership means, subject to the second paragraph, a property that

(a)  is acquired by the corporation or partnership in a period that is,

i.  if the property is referred to in paragraph a.1 because of the application of subparagraph i of that paragraph and is not a property acquired pursuant to an obligation in writing entered into before 14 March 2008 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 13 March 2008, any of the following periods:

(1)  where the property is acquired to be used mainly in a resource region, the period that begins on 14 March 2008 and ends on 31 December 2022, or

(2)  in any other case, the period that begins on 14 March 2008 and ends on 31 December 2016 or, unless it is a property acquired pursuant to an obligation in writing entered into before 16 August 2018 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 15 August 2018, the period that begins on 16 August 2018 and ends on 31 December 2019 or, if it is a property acquired pursuant to an obligation in writing entered into after 15 August 2018 and before 1 January 2020 or the construction of which, if applicable, by or on behalf of the purchaser, began in the latter period, 31 December 2020,

ii.  if the property is referred to in paragraph a.1 because of the application of subparagraph i.1 of that paragraph, any of the following periods:

(1)  where the property is acquired to be used mainly in a resource region, the period that begins on 28 January 2009 and ends on 31 December 2022, or

(2)  in any other case, the period that begins on 28 January 2009 and ends on 31 December 2016 or, unless it is a property acquired pursuant to an obligation in writing entered into before 16 August 2018 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 15 August 2018, the period that begins on 16 August 2018 and ends on 31 December 2019 or, if it is a property acquired pursuant to an obligation in writing entered into after 15 August 2018 and before 1 January 2020 or the construction of which, if applicable, by or on behalf of the purchaser, began in the latter period, 31 December 2020, or

iii.  if the property is referred to in paragraph a.1 because of the application of subparagraph ii of that paragraph and is not a property acquired pursuant to an obligation in writing entered into before 21 March 2012 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 20 March 2012, any of the following periods:

(1)  where the property is acquired to be used mainly in a resource region, the period that begins on 21 March 2012 and ends on 31 December 2022, or

(2)  in any other case, the period that begins on 21 March 2012 and ends on 31 December 2016 or, unless it is a property acquired pursuant to an obligation in writing entered into before 16 August 2018 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 15 August 2018, the period that begins on 16 August 2018 and ends on 31 December 2019 or, if it is a property acquired pursuant to an obligation in writing entered into after 15 August 2018 and before 1 January 2020 or the construction of which, if applicable, by or on behalf of the purchaser, began in the latter period, 31 December 2020;

(a.1)  but for section 93.6, would be included

i.  in any of Classes 29, 43 and 53 of Schedule B to the Regulation respecting the Taxation Act,

i.1.  in Class 50 or 52 of Schedule B to the Regulation respecting the Taxation Act, but could be included, but for section 93.6, in Class 29 of that Schedule under subparagraph vi of subparagraph b of the first paragraph of that class if that subparagraph vi were read as if “28 January 2009” were replaced by “either 1 January 2021 or, where the property is acquired to be used mainly in a resource region, within the meaning of the first paragraph of section 1029.8.36.166.40 of the Act, 1 January 2023” and as if no reference were made to subparagraph c of that paragraph, or

ii.  in Class 43 of Schedule B to the Regulation respecting the Taxation Act if subparagraphs i and ii of paragraph b of that class were read as follows:

“i. would be included in Class 10 under subparagraph e of the second paragraph of that class, if this schedule were read without reference to this paragraph and subparagraphs a, b and e of the first paragraph of Class 41, and

“ii. at the time of its acquisition, may reasonably be expected to be used entirely in Canada and primarily for the purposes of smelting, refining or hydrometallurgy activities in respect of ore (other than ore from a gold or silver mine) extracted from a mineral resource located in Canada.”;

(b)  begins to be used within a reasonable time after being acquired;

(c)  is used solely in Québec and mainly in the course of carrying on a business, other than a recognized business in connection with which a large investment project is carried out or is in the process of being carried out;

(c.1)  is not used in the course of operating an ethanol plant;

(c.2)  is not used in the course of operating a biodiesel fuel plant;

(c.3)  is not used in the course of operating a pyrolysis oil plant;

(c.4)  is not used in the course of operating a biofuel plant; and

(d)  was not, before its acquisition, used for any purpose or acquired to be used or leased for any purpose whatever;

“recognized business” has the meaning assigned by the first paragraph of section 737.18.17.1;

“refining” means any processing of a product from a smelting or concentration operation to remove impurities, which produces very high grade metal;

“resource region” means

(a)  one of the following administrative regions described in the Décret concernant la révision des limites des régions administratives du Québec (chapitre D-11, r. 1):

i.  (subparagraph repealed),

ii.  administrative region 02 Saguenay-Lac-Saint-Jean,

iii.  administrative region 04 Mauricie,

iv.  administrative region 08 Abitibi-Témiscamingue,

v.  administrative region 09 Côte-Nord,

vi.  administrative region 10 Nord-du-Québec, or

vii.  administrative region 11 Gaspésie-Îles-de-la-Madeleine; or

(b)  one of the following regional county municipalities:

i.  Municipalité régionale de comté d’Antoine-Labelle,

i.1.  Municipalité régionale de comté de Kamouraska,

i.2.  Municipalité régionale de comté de La Matapédia,

i.3.  Municipalité régionale de comté de La Mitis,

ii.  Municipalité régionale de comté de La Vallée-de-la-Gatineau, or

ii.1.  Municipalité régionale de comté des Basques,

ii.2.  Municipalité régionale de comté de La Matanie,

iii.  Municipalité régionale de comté de Pontiac,

iv.  Municipalité régionale de comté de Rimouski-Neigette,

v.  Municipalité régionale de comté de Rivière-du-Loup, or

vi.  Municipalité régionale de comté de Témiscouata;

“salary or wages” in relation to a qualified corporation for a taxation year or a qualified partnership for a fiscal period means the aggregate of all amounts each of which is an amount (in the definitions of “manufacturing or processing salary or wages” and “metal manufacturing salary or wages” referred to as the “gross revenue” of an employee) incurred by the corporation in the taxation year or the partnership in the fiscal period, in respect of an employee of the corporation or partnership, as the case may be, and included in computing the employee’s income under Chapters I and II of Title II of Book III, except, in the case of an employee of a corporation, a remuneration based on profits or a bonus, where the employee is a specified shareholder of the corporation in the taxation year;

“smelting” means any processing of an ore or concentrate in the course of which the charge is melted and chemically converted to produce a slag and a matte or metal containing impurities;

“specified member” of a corporation that is a cooperative, in a taxation year, means a member having, directly or indirectly, at any time in the year, at least 10% of the votes at a meeting of the members of the cooperative;

“total taxes” of a corporation for a taxation year means, subject to the ninth paragraph, the aggregate of its tax payable under this Part for the year and of its tax payable under Parts IV, IV.1, VI and VI.1 for the year;

“unused portion of the tax credit” of a corporation for a taxation year means the amount by which the total amount that the corporation would be deemed to have paid to the Minister for that year under the first paragraph of sections 1029.8.36.166.43 and 1029.8.36.166.44 if no reference were made to the third paragraph of those sections, exceeds the corporation’s maximum tax credit amount for the year.

A property that is acquired by a qualified corporation or a qualified partnership and that meets the conditions mentioned in the definition of “qualified property” in the first paragraph and those mentioned in the definition of “specified property” in the first paragraph of section 1029.8.36.166.60.36 is a qualified property only if the corporation or the qualified corporations that are members of the partnership, as the case may be, so elect in the prescribed form containing prescribed information that is enclosed with either of the following documents, as applicable:

(a)  in the case of the corporation, the fiscal return the corporation is required to file under this Part for its first taxation year in which it incurred expenses to acquire the property; or

(b)  in the case of the corporations that are members of the partnership, the information return that the members of the partnership are required to file under section 1086R78 of the Regulation respecting the Taxation Act for the partnership’s first fiscal period in which it incurred expenses to acquire the property.

For the purposes of the second paragraph, an election made by a qualified corporation that is a member of a partnership is deemed to have been made by each qualified corporation that is a member of the partnership.

However, the election referred to in the second paragraph may not be made for a particular taxation year of the qualified corporation or a particular fiscal period of the qualified partnership where

(a)  the qualified corporation or a qualified corporation that is a member of the qualified partnership is deemed to have paid an amount to the Minister under section 1029.8.36.166.60.48 or 1029.8.36.166.60.49 in respect of expenses incurred in the particular year or particular fiscal period, or in a preceding taxation year or fiscal period, as the case may be; or

(b)  if the qualified corporation or qualified partnership is associated in the particular year or particular fiscal period with one or more other corporations or partnerships, one of the following corporations is deemed to have paid an amount to the Minister under section 1029.8.36.166.60.48 or 1029.8.36.166.60.49 in respect of expenses incurred in a taxation year or fiscal period, as the case may be, that ends at or before the end of that particular year or particular fiscal period:

i.  a corporation that is associated with it, or

ii.  a corporation that is a member of a partnership that is associated with it.

For the purposes of paragraph c of the definition of “qualified property” in the first paragraph, a property that is acquired in connection with the carrying out of a large investment project is deemed to be used in the course of carrying on a recognized business referred to in that paragraph that the corporation or partnership begins to carry on at a particular time and that relates to the large investment project, if the expenditures of a capital nature for its acquisition are incurred by the corporation or partnership in the period that begins at the beginning of the carrying out of the project and ends immediately before the particular time.

For the purposes of the definition of “eligible expenses” in the first paragraph, the following rules apply:

(a)  the expenses that are included, at the end of a taxation year or fiscal period, in the capital cost of a property do not include the expenses so included under section 180 or 182; and

(b)  the expenses incurred to acquire a property must be incurred,

i.  where the property is acquired to be used mainly in a resource region, before 1 January 2023, or

ii.  in any other case, before 1 January 2017, or after 15 August 2018 and before 1 January 2020.

For the purposes of the definition of “expenses eligible for an additional increase” in the first paragraph, are excluded eligible expenses incurred in respect of a property before 8 October 2013 or after 7 October 2013 where the property is acquired pursuant to a written obligation entered into before 8 October 2013 or where the construction of the property, by or on behalf of the purchaser, had begun by 7 October 2013, and eligible expenses incurred in respect of a property after 4 June 2014, except eligible expenses incurred after that date and before 1 July 2015 if the property is acquired on or before 4 June 2014 or, otherwise, the property is acquired pursuant to a written obligation entered into on or before that date or the construction of the property, by or on behalf of the purchaser, had begun by that date.

The qualified property referred to in the definition of “expenses eligible for a temporary additional increase” in the first paragraph is a qualified property that

(a)  is acquired in the period that begins on 16 August 2018 and ends on 31 December 2019 otherwise than pursuant to an obligation in writing entered into before 16 August 2018 and that is not a property the construction of which, by or on behalf of the purchaser, had begun by 15 August 2018; or

(b)  is acquired in the calendar year 2020 and either the acquisition is made pursuant to an obligation in writing entered into in the period that begins on 16 August 2018 and ends on 31 December 2019 or the construction of the property, by or on behalf of the purchaser, began in that period.

Where a corporation is, for a taxation year, deemed to have paid an amount to the Minister under this division, otherwise than under any of sections 1029.8.36.166.55 to 1029.8.36.166.57, and an amount under Division II.6.14.2.3, otherwise than under any of sections 1029.8.36.166.60.60 to 1029.8.36.166.60.62, the corporation’s otherwise determined total taxes for the year are, for the purposes of this division, reduced by all or part of those amounts that the corporation takes into account in computing its total taxes for the year for the purposes of Division II.6.14.2.3.

For the purposes of the definition of “exclusion threshold” in the first paragraph, where qualified property is acquired in connection with a joint venture, the exclusion threshold in respect of the qualified property for a corporation or partnership holding a share in the property as a party to such a venture is deemed to be equal to the amount obtained by multiplying $12,500 by the proportion that corresponds to the share of the corporation or partnership, as the case may be, in the property.

For the purposes of the definitions of “manufacturing or processing salary or wages” and “metal manufacturing salary or wages” in the first paragraph, an employee who spends 90% or more of working time on manufacturing or processing activities or on metal manufacturing activities, as the case may be, is deemed to spend all working time on those activities.

2009, c. 15, s. 303; 2010, c. 5, s. 159; 2010, c. 25, s. 171; 2011, c. 6, s. 190; 2011, c. 34, s. 92; 2012, c. 8, s. 229; 2013, c. 10, s. 122; I.N. 2015-05-01; 2015, c. 21, s. 459; 2015, c. 24, s. 142; I.N. 2016-07-01; 2017, c. 1, s. 291; 2017, c. 29, s. 183; 2019, c. 14, s. 360; 2020, c. 16, s. 148; 2019, c. 14, s. 360; 2021, c. 14, s. 147; 2021, c. 18, s. 129; 2022, c. 23, s. 106; 2023, c. 2, s. 48.

2022-06-08

1029.8.36.166.40. In this division,

“aluminum producing corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an aluminum producing business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“eligible expenses” of a corporation for a particular taxation year or of a partnership for a particular fiscal period, in respect of a qualified property, means

(a)  for a corporation, the amount by which the excluded expense amount relating to the qualified property in respect of the corporation for the particular year is exceeded by the aggregate of the following expenses, except expenses incurred with a person with whom the corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the corporation in the particular taxation year to acquire the qualified property that are included, at the end of that year, in the capital cost of the property and that are paid in the particular year,

ii.  the amount by which the expenses incurred by the corporation in the particular taxation year, or in a preceding taxation year for which the corporation was a qualified corporation, to acquire the qualified property that are included, at the end of the particular year or of the preceding year, as the case may be, in the capital cost of the property and that are paid after the end of the particular year or of the preceding year, as the case may be, but not later than 18 months after the end of that year, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the corporation’s eligible expenses in respect of which the corporation would be deemed to have paid an amount to the Minister under section 1029.8.36.166.43 for a taxation year preceding the particular year if that section were read without reference to its third paragraph, and

iii.  the expenses incurred by the corporation to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular taxation year, if the expenses are paid more than 18 months after the end of the corporation’s taxation year in which they were incurred and for which the corporation was a qualified corporation; and

(b)  for a partnership, the amount by which the excluded expense amount relating to the qualified property in respect of the partnership for the particular fiscal period is exceeded by the aggregate of the following expenses, except expenses incurred with a corporation that is a member of the partnership or with a person with whom such a corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the partnership in the particular fiscal period to acquire the qualified property that are included, at the end of that fiscal period, in the capital cost of the property and that are paid in that fiscal period,

ii.  the amount by which the expenses incurred by the partnership in the particular fiscal period, or in a preceding fiscal period for which the partnership was a qualified partnership, to acquire the qualified property that are included, at the end of the particular fiscal period or of the preceding fiscal period, as the case may be, in the capital cost of the property and that are paid after the end of the particular fiscal period or of the preceding fiscal period, as the case may be, but not later than 18 months after the end of that fiscal period, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the partnership’s eligible expenses in respect of which a corporation that is a member of the partnership would be deemed to have paid an amount to the Minister under section 1029.8.36.166.44 for a taxation year preceding that in which the particular fiscal period ends, if that section were read without reference to its third and sixth paragraphs and if, where the corporation was not a qualified corporation for the preceding taxation year, the corporation had been a qualified corporation for the preceding taxation year, and

iii.  the expenses incurred by the partnership to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular fiscal period, if the expenses are paid more than 18 months after the end of the partnership’s fiscal period in which they were incurred and for which the partnership was a qualified partnership;

“excluded corporation” for a taxation year means

(a)  a corporation that is exempt from tax for the year under Book VIII;

(b)  a corporation that would be exempt from tax for the year under section 985, but for section 192;

(c)  an aluminum producing corporation for the year;

(d)  an oil refining corporation for the year; or

(e)  a corporation that was carrying on a recognized business, for the purposes of Division II.6.6.6.1, before 1 April 2008 and, if the taxation year is the one in which the calendar year 2008 or 2009 ends, that has not made an election under section 1029.8.36.72.82.3.1 for the year or a preceding taxation year or, if the taxation year is the one in which the calendar year 2010 ends, that has made an election under section 1029.8.36.72.82.3.1.1 for the year, or that is associated with such a corporation in the year;

“excluded expense amount” relating to qualified property means

(a)  in respect of a corporation, for a taxation year, or a partnership, for a fiscal period, an amount equal to zero, where the qualified property is acquired before 3 December 2014 or after 2 December 2014 pursuant to an obligation in writing entered into on or before 2 December 2014, or where the construction of the qualified property, by or on behalf of the purchaser, has begun on that date;

(b)  in respect of a corporation, for a taxation year, the lesser of the following amounts, where the qualified property is not referred to in paragraph a:

i.  an amount that would be equal to the corporation’s eligible expenses in respect of that property for the taxation year, if the definition of “eligible expenses” were read without reference to “the amount by which the excluded expense amount relating to the qualified property in respect of the corporation for the particular year is exceeded by” in the portion of its paragraph a before subparagraph i, and

ii.  an amount equal to the amount by which the exclusion threshold in respect of the qualified property exceeds the aggregate of all amounts each of which is the excluded expense amount relating to the qualified property in respect of the corporation for each preceding taxation year; and

(c)  in respect of a partnership, for a fiscal period, the lesser of the following amounts, where the qualified property is not referred to in paragraph a:

i.  an amount that would be equal to the partnership’s eligible expenses in respect of that property for the fiscal period, if the definition of “eligible expenses” were read without reference to “the amount by which the excluded expense amount relating to the qualified property in respect of the partnership for the particular fiscal period is exceeded by” in the portion of its paragraph b before subparagraph i, and

ii.  an amount equal to the amount by which the exclusion threshold in respect of the qualified property exceeds the aggregate of all amounts each of which is the excluded expense amount relating to the qualified property in respect of the partnership for each preceding fiscal period;

“excluded partnership” for a fiscal period means a partnership that, at any time in the fiscal period after 13 March 2008, carries on an aluminum producing business or an oil refining business;

“exclusion threshold” in respect of qualified property means an amount equal to $12,500;

“expenses eligible for an additional increase” of a corporation for a taxation year or of a partnership for a fiscal period, in respect of a qualified property, means the portion of the eligible expenses of the corporation for the year or of the partnership for the fiscal period, in respect of the property, that are incurred

(a)  by the corporation in a taxation year for which it is a qualified manufacturing corporation; or

(b)  by the partnership in a fiscal period for which it is a qualified manufacturing partnership;

“expenses eligible for a temporary additional increase” of a corporation for a taxation year or of a partnership for a fiscal period, in respect of a qualified property described in the eighth paragraph, means the portion of the eligible expenses of the corporation for the year or of the partnership for the fiscal period, in respect of the property, that are incurred after 15 August 2018 and before 1 January 2020

(a)  by the corporation in a taxation year for which it is a qualified metal manufacturing sector corporation; or

(b)  by the partnership in a fiscal period for which it is a qualified metal manufacturing sector partnership;

“hydrometallurgy” means any processing of an ore or concentrate that produces a metal, metallic salt or metallic compound by carrying out a chemical reaction in an aqueous or organic solution;

“large investment project” has the meaning assigned by the first paragraph of section 737.18.17.1;

“limit relating to an unused portion” in respect of a corporation for a taxation year means the aggregate of its total taxes for the year and of the amount determined for the year in its respect under the second paragraph of section 1029.8.36.166.42;

“manufacturing or processing salary or wages” in relation to a qualified corporation for a taxation year or a qualified partnership for a fiscal period means the portion of the salary or wages in relation to the qualified corporation for the taxation year or the qualified partnership for the fiscal period that corresponds to the aggregate of all amounts each of which is equal to the result obtained by multiplying the gross revenue of an employee of the corporation or partnership, as the case may be, by the proportion that the employee’s working time spent on manufacturing or processing activities, other than activities listed in section 130R12 of the Regulation respecting the Taxation Act (chapter I-3, r. 1), in the taxation year or fiscal period is of all the employee’s working time in that year or period;

“maximum tax credit amount” of a corporation for a taxation year means the aggregate of the amount by which its total taxes for the year exceed the amount it is deemed to have paid to the Minister for the year under section 1029.8.36.166.46, and of the amount determined for the year in its respect under the first paragraph of section 1029.8.36.166.42;

“metal manufacturing activities” of a corporation or a partnership means the following activities:

(a)  the primary metal manufacturing activities that are included in the group described under code 331 of the North American Industry Classification System (NAICS) Canada, as amended from time to time and published by Statistics Canada; and

(b)  the fabricated metal product manufacturing activities that are included in the group described under code 332 of the publication mentioned in paragraph a;

“metal manufacturing salary or wages” in relation to a qualified corporation for a taxation year or a qualified partnership for a fiscal period means the portion of the salary or wages in relation to the qualified corporation for the taxation year or the qualified partnership for the fiscal period that corresponds to the aggregate of all amounts each of which is equal to the result obtained by multiplying the gross revenue of an employee of the corporation or partnership, as the case may be, by the proportion that the employee’s working time spent on metal manufacturing activities in the taxation year or fiscal period is of all the employee’s working time in that year or period;

“oil refining corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an oil refining business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“proportion of the activities relating to the metal manufacturing sector” of a qualified corporation for a taxation year or of a qualified partnership for a fiscal period means the proportion, expressed as a percentage, that the metal manufacturing salary or wages in relation to the corporation for the taxation year or to the partnership for the fiscal period is of the salary or wages in relation to the corporation for that year or to the partnership for that period;

“qualified corporation” for a taxation year means a corporation, other than an excluded corporation for the year, that, in the year, carries on a business in Québec and has an establishment in Québec;

“qualified manufacturing corporation” for a taxation year means a qualified corporation, for the year, in respect of which the proportion of the manufacturing or processing activities that the manufacturing or processing salary or wages in relation to the corporation for the year is of the salary or wages in relation to the corporation for the year, exceeds 50%;

“qualified manufacturing partnership” for a fiscal period means a qualified partnership, for the fiscal period, in respect of which the proportion of the manufacturing or processing activities that the manufacturing or processing salary or wages in relation to the partnership for the fiscal period is of the salary or wages in relation to the partnership for the fiscal period, exceeds 50%;

“qualified metal manufacturing sector corporation” for a taxation year means a qualified corporation for the year in respect of which the proportion of the activities relating to the metal manufacturing sector for the year exceeds 50%;

“qualified metal manufacturing sector partnership” for a fiscal period means a qualified partnership for the fiscal period in respect of which the proportion of the activities relating to the metal manufacturing sector for that period exceeds 50%;

“qualified partnership” for a fiscal period means a partnership, other than an excluded partnership for the fiscal period, that, in the fiscal period, carries on a business in Québec and has an establishment in Québec;

“qualified property” of a corporation or a partnership means, subject to the second paragraph, a property that

(a)  is acquired by the corporation or partnership in a period that is,

i.  if the property is referred to in paragraph a.1 because of the application of subparagraph i of that paragraph and is not a property acquired pursuant to an obligation in writing entered into before 14 March 2008 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 13 March 2008, any of the following periods:

(1)  where the property is acquired to be used mainly in a resource region, the period that begins on 14 March 2008 and ends on 31 December 2022, or

(2)  in any other case, the period that begins on 14 March 2008 and ends on 31 December 2016 or, unless it is a property acquired pursuant to an obligation in writing entered into before 16 August 2018 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 15 August 2018, the period that begins on 16 August 2018 and ends on 31 December 2019 or, if it is a property acquired pursuant to an obligation in writing entered into after 15 August 2018 and before 1 January 2020 or the construction of which, if applicable, by or on behalf of the purchaser, began in the latter period, 31 December 2020,

ii.  if the property is referred to in paragraph a.1 because of the application of subparagraph i.1 of that paragraph, any of the following periods:

(1)  where the property is acquired to be used mainly in a resource region, the period that begins on 28 January 2009 and ends on 31 December 2022, or

(2)  in any other case, the period that begins on 28 January 2009 and ends on 31 December 2016 or, unless it is a property acquired pursuant to an obligation in writing entered into before 16 August 2018 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 15 August 2018, the period that begins on 16 August 2018 and ends on 31 December 2019 or, if it is a property acquired pursuant to an obligation in writing entered into after 15 August 2018 and before 1 January 2020 or the construction of which, if applicable, by or on behalf of the purchaser, began in the latter period, 31 December 2020, or

iii.  if the property is referred to in paragraph a.1 because of the application of subparagraph ii of that paragraph and is not a property acquired pursuant to an obligation in writing entered into before 21 March 2012 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 20 March 2012, any of the following periods:

(1)  where the property is acquired to be used mainly in a resource region, the period that begins on 21 March 2012 and ends on 31 December 2022, or

(2)  in any other case, the period that begins on 21 March 2012 and ends on 31 December 2016 or, unless it is a property acquired pursuant to an obligation in writing entered into before 16 August 2018 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 15 August 2018, the period that begins on 16 August 2018 and ends on 31 December 2019 or, if it is a property acquired pursuant to an obligation in writing entered into after 15 August 2018 and before 1 January 2020 or the construction of which, if applicable, by or on behalf of the purchaser, began in the latter period, 31 December 2020;

(a.1)  but for section 93.6, would be included

i.  in any of Classes 29, 43 and 53 of Schedule B to the Regulation respecting the Taxation Act,

i.1.  in Class 50 or 52 of Schedule B to the Regulation respecting the Taxation Act, but could be included, but for section 93.6, in Class 29 of that Schedule under subparagraph vi of subparagraph b of the first paragraph of that class if that subparagraph vi were read as if “28 January 2009” were replaced by “either 1 January 2021 or, where the property is acquired to be used mainly in a resource region, within the meaning of the first paragraph of section 1029.8.36.166.40 of the Act, 1 January 2023” and as if no reference were made to subparagraph c of that paragraph, or

ii.  in Class 43 of Schedule B to the Regulation respecting the Taxation Act if subparagraphs i and ii of paragraph b of that class were read as follows:

“i. would be included in Class 10 under subparagraph e of the second paragraph of that class, if this schedule were read without reference to this paragraph and subparagraphs a, b and e of the first paragraph of Class 41, and

“ii. at the time of its acquisition, may reasonably be expected to be used entirely in Canada and primarily for the purposes of smelting, refining or hydrometallurgy activities in respect of ore (other than ore from a gold or silver mine) extracted from a mineral resource located in Canada.”;

(b)  begins to be used within a reasonable time after being acquired;

(c)  is used solely in Québec and mainly in the course of carrying on a business, other than a recognized business in connection with which a large investment project is carried out or is in the process of being carried out;

(c.1)  is not used in the course of operating an ethanol plant;

(c.2)  is not used in the course of operating a biodiesel fuel plant;

(c.3)  is not used in the course of operating a pyrolysis oil plant; and

(d)  was not, before its acquisition, used for any purpose or acquired to be used or leased for any purpose whatever;

“recognized business” has the meaning assigned by the first paragraph of section 737.18.17.1;

“refining” means any processing of a product from a smelting or concentration operation to remove impurities, which produces very high grade metal;

“resource region” means

(a)  one of the following administrative regions described in the Décret concernant la révision des limites des régions administratives du Québec (chapitre D-11, r. 1):

i.  (subparagraph repealed),

ii.  administrative region 02 Saguenay-Lac-Saint-Jean,

iii.  administrative region 04 Mauricie,

iv.  administrative region 08 Abitibi-Témiscamingue,

v.  administrative region 09 Côte-Nord,

vi.  administrative region 10 Nord-du-Québec, or

vii.  administrative region 11 Gaspésie-Îles-de-la-Madeleine; or

(b)  one of the following regional county municipalities:

i.  Municipalité régionale de comté d’Antoine-Labelle,

i.1.  Municipalité régionale de comté de Kamouraska,

i.2.  Municipalité régionale de comté de La Matapédia,

i.3.  Municipalité régionale de comté de La Mitis,

ii.  Municipalité régionale de comté de La Vallée-de-la-Gatineau, or

ii.1.  Municipalité régionale de comté des Basques,

ii.2.  Municipalité régionale de comté de La Matanie,

iii.  Municipalité régionale de comté de Pontiac,

iv.  Municipalité régionale de comté de Rimouski-Neigette,

v.  Municipalité régionale de comté de Rivière-du-Loup, or

vi.  Municipalité régionale de comté de Témiscouata;

“salary or wages” in relation to a qualified corporation for a taxation year or a qualified partnership for a fiscal period means the aggregate of all amounts each of which is an amount (in the definitions of “manufacturing or processing salary or wages” and “metal manufacturing salary or wages” referred to as the “gross revenue” of an employee) incurred by the corporation in the taxation year or the partnership in the fiscal period, in respect of an employee of the corporation or partnership, as the case may be, and included in computing the employee’s income under Chapters I and II of Title II of Book III, except, in the case of an employee of a corporation, a remuneration based on profits or a bonus, where the employee is a specified shareholder of the corporation in the taxation year;

“smelting” means any processing of an ore or concentrate in the course of which the charge is melted and chemically converted to produce a slag and a matte or metal containing impurities;

“specified member” of a corporation that is a cooperative, in a taxation year, means a member having, directly or indirectly, at any time in the year, at least 10% of the votes at a meeting of the members of the cooperative;

“total taxes” of a corporation for a taxation year means, subject to the ninth paragraph, the aggregate of its tax payable under this Part for the year and of its tax payable under Parts IV, IV.1, VI and VI.1 for the year;

“unused portion of the tax credit” of a corporation for a taxation year means the amount by which the total amount that the corporation would be deemed to have paid to the Minister for that year under the first paragraph of sections 1029.8.36.166.43 and 1029.8.36.166.44 if no reference were made to the third paragraph of those sections, exceeds the corporation’s maximum tax credit amount for the year.

A property that is acquired by a qualified corporation or a qualified partnership and that meets the conditions mentioned in the definition of “qualified property” in the first paragraph and those mentioned in the definition of “specified property” in the first paragraph of section 1029.8.36.166.60.36 is a qualified property only if the corporation or the qualified corporations that are members of the partnership, as the case may be, so elect in the prescribed form containing prescribed information that is enclosed with either of the following documents, as applicable:

(a)  in the case of the corporation, the fiscal return the corporation is required to file under this Part for its first taxation year in which it incurred expenses to acquire the property; or

(b)  in the case of the corporations that are members of the partnership, the information return that the members of the partnership are required to file under section 1086R78 of the Regulation respecting the Taxation Act for the partnership’s first fiscal period in which it incurred expenses to acquire the property.

For the purposes of the second paragraph, an election made by a qualified corporation that is a member of a partnership is deemed to have been made by each qualified corporation that is a member of the partnership.

However, the election referred to in the second paragraph may not be made for a particular taxation year of the qualified corporation or a particular fiscal period of the qualified partnership where

(a)  the qualified corporation or a qualified corporation that is a member of the qualified partnership is deemed to have paid an amount to the Minister under section 1029.8.36.166.60.48 or 1029.8.36.166.60.49 in respect of expenses incurred in the particular year or particular fiscal period, or in a preceding taxation year or fiscal period, as the case may be; or

(b)  if the qualified corporation or qualified partnership is associated in the particular year or particular fiscal period with one or more other corporations or partnerships, one of the following corporations is deemed to have paid an amount to the Minister under section 1029.8.36.166.60.48 or 1029.8.36.166.60.49 in respect of expenses incurred in a taxation year or fiscal period, as the case may be, that ends at or before the end of that particular year or particular fiscal period:

i.  a corporation that is associated with it, or

ii.  a corporation that is a member of a partnership that is associated with it.

For the purposes of paragraph c of the definition of “qualified property” in the first paragraph, a property that is acquired in connection with the carrying out of a large investment project is deemed to be used in the course of carrying on a recognized business referred to in that paragraph that the corporation or partnership begins to carry on at a particular time and that relates to the large investment project, if the expenditures of a capital nature for its acquisition are incurred by the corporation or partnership in the period that begins at the beginning of the carrying out of the project and ends immediately before the particular time.

For the purposes of the definition of “eligible expenses” in the first paragraph, the following rules apply:

(a)  the expenses that are included, at the end of a taxation year or fiscal period, in the capital cost of a property do not include the expenses so included under section 180 or 182; and

(b)  the expenses incurred to acquire a property must be incurred,

i.  where the property is acquired to be used mainly in a resource region, before 1 January 2023, or

ii.  in any other case, before 1 January 2017, or after 15 August 2018 and before 1 January 2020.

For the purposes of the definition of “expenses eligible for an additional increase” in the first paragraph, are excluded eligible expenses incurred in respect of a property before 8 October 2013 or after 7 October 2013 where the property is acquired pursuant to a written obligation entered into before 8 October 2013 or where the construction of the property, by or on behalf of the purchaser, had begun by 7 October 2013, and eligible expenses incurred in respect of a property after 4 June 2014, except eligible expenses incurred after that date and before 1 July 2015 if the property is acquired on or before 4 June 2014 or, otherwise, the property is acquired pursuant to a written obligation entered into on or before that date or the construction of the property, by or on behalf of the purchaser, had begun by that date.

The qualified property referred to in the definition of “expenses eligible for a temporary additional increase” in the first paragraph is a qualified property that

(a)  is acquired in the period that begins on 16 August 2018 and ends on 31 December 2019 otherwise than pursuant to an obligation in writing entered into before 16 August 2018 and that is not a property the construction of which, by or on behalf of the purchaser, had begun by 15 August 2018; or

(b)  is acquired in the calendar year 2020 and either the acquisition is made pursuant to an obligation in writing entered into in the period that begins on 16 August 2018 and ends on 31 December 2019 or the construction of the property, by or on behalf of the purchaser, began in that period.

Where a corporation is, for a taxation year, deemed to have paid an amount to the Minister under this division, otherwise than under any of sections 1029.8.36.166.55 to 1029.8.36.166.57, and an amount under Division II.6.14.2.3, otherwise than under any of sections 1029.8.36.166.60.60 to 1029.8.36.166.60.62, the corporation’s otherwise determined total taxes for the year are, for the purposes of this division, reduced by all or part of those amounts that the corporation takes into account in computing its total taxes for the year for the purposes of Division II.6.14.2.3.

For the purposes of the definition of “exclusion threshold” in the first paragraph, where qualified property is acquired in connection with a joint venture, the exclusion threshold in respect of the qualified property for a corporation or partnership holding a share in the property as a party to such a venture is deemed to be equal to the amount obtained by multiplying $12,500 by the proportion that corresponds to the share of the corporation or partnership, as the case may be, in the property.

For the purposes of the definitions of “manufacturing or processing salary or wages” and “metal manufacturing salary or wages” in the first paragraph, an employee who spends 90% or more of working time on manufacturing or processing activities or on metal manufacturing activities, as the case may be, is deemed to spend all working time on those activities.

2009, c. 15, s. 303; 2010, c. 5, s. 159; 2010, c. 25, s. 171; 2011, c. 6, s. 190; 2011, c. 34, s. 92; 2012, c. 8, s. 229; 2013, c. 10, s. 122; I.N. 2015-05-01; 2015, c. 21, s. 459; 2015, c. 24, s. 142; I.N. 2016-07-01; 2017, c. 1, s. 291; 2017, c. 29, s. 183; 2019, c. 14, s. 360; 2020, c. 16, s. 148; 2019, c. 14, s. 360; 2021, c. 14, s. 147; 2021, c. 18, s. 129; 2022, c. 23, s. 106.

2021-06-04

1029.8.36.166.40. In this division,

“aluminum producing corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an aluminum producing business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“associated group” in a taxation year has the meaning assigned by section 1029.8.36.166.41;

“eligible expenses” of a corporation for a particular taxation year or of a partnership for a particular fiscal period, in respect of a qualified property, means

(a)  for a corporation, the amount by which the excluded expense amount relating to the qualified property in respect of the corporation for the particular year is exceeded by the aggregate of the following expenses, except expenses incurred with a person with whom the corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the corporation in the particular taxation year to acquire the qualified property that are included, at the end of that year, in the capital cost of the property and that are paid in the particular year,

ii.  the amount by which the expenses incurred by the corporation in the particular taxation year, or in a preceding taxation year for which the corporation was a qualified corporation, to acquire the qualified property that are included, at the end of the particular year or of the preceding year, as the case may be, in the capital cost of the property and that are paid after the end of the particular year or of the preceding year, as the case may be, but not later than 18 months after the end of that year, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the corporation’s eligible expenses in respect of which the corporation would be deemed to have paid an amount to the Minister under section 1029.8.36.166.43 for a taxation year preceding the particular year if that section were read without reference to its third paragraph, and

iii.  the expenses incurred by the corporation to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular taxation year, if the expenses are paid more than 18 months after the end of the corporation’s taxation year in which they were incurred and for which the corporation was a qualified corporation; and

(b)  for a partnership, the amount by which the excluded expense amount relating to the qualified property in respect of the partnership for the particular fiscal period is exceeded by the aggregate of the following expenses, except expenses incurred with a corporation that is a member of the partnership or with a person with whom such a corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the partnership in the particular fiscal period to acquire the qualified property that are included, at the end of that fiscal period, in the capital cost of the property and that are paid in that fiscal period,

ii.  the amount by which the expenses incurred by the partnership in the particular fiscal period, or in a preceding fiscal period for which the partnership was a qualified partnership, to acquire the qualified property that are included, at the end of the particular fiscal period or of the preceding fiscal period, as the case may be, in the capital cost of the property and that are paid after the end of the particular fiscal period or of the preceding fiscal period, as the case may be, but not later than 18 months after the end of that fiscal period, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the partnership’s eligible expenses in respect of which a corporation that is a member of the partnership would be deemed to have paid an amount to the Minister under section 1029.8.36.166.44 for a taxation year preceding that in which the particular fiscal period ends, if that section were read without reference to its third and sixth paragraphs and if, where the corporation was not a qualified corporation for the preceding taxation year, the corporation had been a qualified corporation for the preceding taxation year, and

iii.  the expenses incurred by the partnership to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular fiscal period, if the expenses are paid more than 18 months after the end of the partnership’s fiscal period in which they were incurred and for which the partnership was a qualified partnership;

“excluded corporation” for a taxation year means

(a)  a corporation that is exempt from tax for the year under Book VIII;

(b)  a corporation that would be exempt from tax for the year under section 985, but for section 192;

(c)  an aluminum producing corporation for the year;

(d)  an oil refining corporation for the year; or

(e)  a corporation that was carrying on a recognized business, for the purposes of Division II.6.6.6.1, before 1 April 2008 and, if the taxation year is the one in which the calendar year 2008 or 2009 ends, that has not made an election under section 1029.8.36.72.82.3.1 for the year or a preceding taxation year or, if the taxation year is the one in which the calendar year 2010 ends, that has made an election under section 1029.8.36.72.82.3.1.1 for the year, or that is associated with such a corporation in the year;

“excluded expense amount” relating to qualified property means

(a)  in respect of a corporation, for a taxation year, or a partnership, for a fiscal period, an amount equal to zero, where the qualified property is acquired before 3 December 2014 or after 2 December 2014 pursuant to an obligation in writing entered into on or before 2 December 2014, or where the construction of the qualified property, by or on behalf of the purchaser, has begun on that date;

(b)  in respect of a corporation, for a taxation year, the lesser of the following amounts, where the qualified property is not referred to in paragraph a:

i.  an amount that would be equal to the corporation’s eligible expenses in respect of that property for the taxation year, if the definition of “eligible expenses” were read without reference to “the amount by which the excluded expense amount relating to the qualified property in respect of the corporation for the particular year is exceeded by” in the portion of its paragraph a before subparagraph i, and

ii.  an amount equal to the amount by which the exclusion threshold in respect of the qualified property exceeds the aggregate of all amounts each of which is the excluded expense amount relating to the qualified property in respect of the corporation for each preceding taxation year; and

(c)  in respect of a partnership, for a fiscal period, the lesser of the following amounts, where the qualified property is not referred to in paragraph a:

i.  an amount that would be equal to the partnership’s eligible expenses in respect of that property for the fiscal period, if the definition of “eligible expenses” were read without reference to “the amount by which the excluded expense amount relating to the qualified property in respect of the partnership for the particular fiscal period is exceeded by” in the portion of its paragraph b before subparagraph i, and

ii.  an amount equal to the amount by which the exclusion threshold in respect of the qualified property exceeds the aggregate of all amounts each of which is the excluded expense amount relating to the qualified property in respect of the partnership for each preceding fiscal period;

“excluded partnership” for a fiscal period means a partnership that, at any time in the fiscal period after 13 March 2008, carries on an aluminum producing business or an oil refining business;

“exclusion threshold” in respect of qualified property means an amount equal to $12,500;

“expenses eligible for an additional increase” of a corporation for a taxation year or of a partnership for a fiscal period, in respect of a qualified property, means the portion of the eligible expenses of the corporation for the year or of the partnership for the fiscal period, in respect of the property, that are incurred

(a)  by the corporation in a taxation year for which it is a qualified manufacturing corporation; or

(b)  by the partnership in a fiscal period for which it is a qualified manufacturing partnership;

“expenses eligible for a temporary additional increase” of a corporation for a taxation year or of a partnership for a fiscal period, in respect of a qualified property described in the eighth paragraph, means the portion of the eligible expenses of the corporation for the year or of the partnership for the fiscal period, in respect of the property, that are incurred after 15 August 2018 and before 1 January 2020

(a)  by the corporation in a taxation year for which it is a qualified metal manufacturing sector corporation; or

(b)  by the partnership in a fiscal period for which it is a qualified metal manufacturing sector partnership;

“hydrometallurgy” means any processing of an ore or concentrate that produces a metal, metallic salt or metallic compound by carrying out a chemical reaction in an aqueous or organic solution;

“large investment project” has the meaning assigned by the first paragraph of section 737.18.17.1;

“limit relating to an unused portion” in respect of a corporation for a taxation year means the aggregate of its total taxes for the year and of the amount determined for the year in its respect under the second paragraph of section 1029.8.36.166.42;

“manufacturing or processing salary or wages” in relation to a qualified corporation for a taxation year or a qualified partnership for a fiscal period means the portion of the salary or wages in relation to the qualified corporation for the taxation year or the qualified partnership for the fiscal period that corresponds to the aggregate of all amounts each of which is equal to the result obtained by multiplying the gross revenue of an employee of the corporation or partnership, as the case may be, by the proportion that the employee’s working time spent on manufacturing or processing activities, other than activities listed in section 130R12 of the Regulation respecting the Taxation Act (chapter I-3, r. 1), in the taxation year or fiscal period is of all the employee’s working time in that year or period;

“maximum tax credit amount” of a corporation for a taxation year means the aggregate of the amount by which its total taxes for the year exceed the amount it is deemed to have paid to the Minister for the year under section 1029.8.36.166.46, and of the amount determined for the year in its respect under the first paragraph of section 1029.8.36.166.42;

“metal manufacturing activities” of a corporation or a partnership means the following activities:

(a)  the primary metal manufacturing activities that are included in the group described under code 331 of the North American Industry Classification System (NAICS) Canada, as amended from time to time and published by Statistics Canada; and

(b)  the fabricated metal product manufacturing activities that are included in the group described under code 332 of the publication mentioned in paragraph a;

“metal manufacturing salary or wages” in relation to a qualified corporation for a taxation year or a qualified partnership for a fiscal period means the portion of the salary or wages in relation to the qualified corporation for the taxation year or the qualified partnership for the fiscal period that corresponds to the aggregate of all amounts each of which is equal to the result obtained by multiplying the gross revenue of an employee of the corporation or partnership, as the case may be, by the proportion that the employee’s working time spent on metal manufacturing activities in the taxation year or fiscal period is of all the employee’s working time in that year or period;

“oil refining corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an oil refining business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“proportion of the activities relating to the metal manufacturing sector” of a qualified corporation for a taxation year or of a qualified partnership for a fiscal period means the proportion, expressed as a percentage, that the metal manufacturing salary or wages in relation to the corporation for the taxation year or to the partnership for the fiscal period is of the salary or wages in relation to the corporation for that year or to the partnership for that period;

“qualified corporation” for a taxation year means a corporation, other than an excluded corporation for the year, that, in the year, carries on a business in Québec and has an establishment in Québec;

“qualified manufacturing corporation” for a taxation year means a qualified corporation, for the year, in respect of which the proportion of the manufacturing or processing activities that the manufacturing or processing salary or wages in relation to the corporation for the year is of the salary or wages in relation to the corporation for the year, exceeds 50%;

“qualified manufacturing partnership” for a fiscal period means a qualified partnership, for the fiscal period, in respect of which the proportion of the manufacturing or processing activities that the manufacturing or processing salary or wages in relation to the partnership for the fiscal period is of the salary or wages in relation to the partnership for the fiscal period, exceeds 50%;

“qualified metal manufacturing sector corporation” for a taxation year means a qualified corporation for the year in respect of which the proportion of the activities relating to the metal manufacturing sector for the year exceeds 50%;

“qualified metal manufacturing sector partnership” for a fiscal period means a qualified partnership for the fiscal period in respect of which the proportion of the activities relating to the metal manufacturing sector for that period exceeds 50%;

“qualified partnership” for a fiscal period means a partnership, other than an excluded partnership for the fiscal period, that, in the fiscal period, carries on a business in Québec and has an establishment in Québec;

“qualified property” of a corporation or a partnership means, subject to the second paragraph, a property that

(a)  is acquired by the corporation or partnership in a period that is,

i.  if the property is referred to in paragraph a.1 because of the application of subparagraph i of that paragraph and is not a property acquired pursuant to an obligation in writing entered into before 14 March 2008 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 13 March 2008, any of the following periods:

(1)  where the property is acquired to be used mainly in a resource region, the period that begins on 14 March 2008 and ends on 31 December 2022, or

(2)  in any other case, the period that begins on 14 March 2008 and ends on 31 December 2016 or, unless it is a property acquired pursuant to an obligation in writing entered into before 16 August 2018 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 15 August 2018, the period that begins on 16 August 2018 and ends on 31 December 2019 or, if it is a property acquired pursuant to an obligation in writing entered into after 15 August 2018 and before 1 January 2020 or the construction of which, if applicable, by or on behalf of the purchaser, began in the latter period, 31 December 2020,

ii.  if the property is referred to in paragraph a.1 because of the application of subparagraph i.1 of that paragraph, any of the following periods:

(1)  where the property is acquired to be used mainly in a resource region, the period that begins on 28 January 2009 and ends on 31 December 2022, or

(2)  in any other case, the period that begins on 28 January 2009 and ends on 31 December 2016 or, unless it is a property acquired pursuant to an obligation in writing entered into before 16 August 2018 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 15 August 2018, the period that begins on 16 August 2018 and ends on 31 December 2019 or, if it is a property acquired pursuant to an obligation in writing entered into after 15 August 2018 and before 1 January 2020 or the construction of which, if applicable, by or on behalf of the purchaser, began in the latter period, 31 December 2020, or

iii.  if the property is referred to in paragraph a.1 because of the application of subparagraph ii of that paragraph and is not a property acquired pursuant to an obligation in writing entered into before 21 March 2012 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 20 March 2012, any of the following periods:

(1)  where the property is acquired to be used mainly in a resource region, the period that begins on 21 March 2012 and ends on 31 December 2022, or

(2)  in any other case, the period that begins on 21 March 2012 and ends on 31 December 2016 or, unless it is a property acquired pursuant to an obligation in writing entered into before 16 August 2018 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 15 August 2018, the period that begins on 16 August 2018 and ends on 31 December 2019 or, if it is a property acquired pursuant to an obligation in writing entered into after 15 August 2018 and before 1 January 2020 or the construction of which, if applicable, by or on behalf of the purchaser, began in the latter period, 31 December 2020;

(a.1)  but for section 93.6, would be included

i.  in any of Classes 29, 43 and 53 of Schedule B to the Regulation respecting the Taxation Act (chapter I-3, r. 1),

i.1.  in Class 50 or 52 of Schedule B to the Regulation respecting the Taxation Act, but could be included, but for section 93.6, in Class 29 of that Schedule under subparagraph vi of subparagraph b of the first paragraph of that class if that subparagraph vi were read as if “28 January 2009” were replaced by “either 1 January 2021 or, where the property is acquired to be used mainly in a resource region, within the meaning of the first paragraph of section 1029.8.36.166.40 of the Act, 1 January 2023” and as if no reference were made to subparagraph c of that paragraph, or

ii.  in Class 43 of Schedule B to the Regulation respecting the Taxation Act if subparagraphs i and ii of paragraph b of that class were read as follows:

“i. would be included in Class 10 under subparagraph e of the second paragraph of that class, if this schedule were read without reference to this paragraph and subparagraphs a, b and e of the first paragraph of Class 41, and

“ii. at the time of its acquisition, may reasonably be expected to be used entirely in Canada and primarily for the purposes of smelting, refining or hydrometallurgy activities in respect of ore (other than ore from a gold or silver mine) extracted from a mineral resource located in Canada.”;

(b)  begins to be used within a reasonable time after being acquired;

(c)  is used solely in Québec and mainly in the course of carrying on a business, other than a recognized business in connection with which a large investment project is carried out or is in the process of being carried out;

(c.1)  is not used in the course of operating an ethanol plant;

(c.2)  is not used in the course of operating a biodiesel fuel plant;

(c.3)  is not used in the course of operating a pyrolysis oil plant; and

(d)  was not, before its acquisition, used for any purpose or acquired to be used or leased for any purpose whatever;

“recognized business” has the meaning assigned by the first paragraph of section 737.18.17.1;

“refining” means any processing of a product from a smelting or concentration operation to remove impurities, which produces very high grade metal;

“resource region” means

(a)  one of the following administrative regions described in the Décret concernant la révision des limites des régions administratives du Québec (chapitre D-11, r. 1):

i.  (subparagraph repealed),

ii.  administrative region 02 Saguenay-Lac-Saint-Jean,

iii.  administrative region 04 Mauricie,

iv.  administrative region 08 Abitibi-Témiscamingue,

v.  administrative region 09 Côte-Nord,

vi.  administrative region 10 Nord-du-Québec, or

vii.  administrative region 11 Gaspésie-Îles-de-la-Madeleine; or

(b)  one of the following regional county municipalities:

i.  Municipalité régionale de comté d’Antoine-Labelle,

i.1.  Municipalité régionale de comté de Kamouraska,

i.2.  Municipalité régionale de comté de La Matapédia,

i.3.  Municipalité régionale de comté de La Mitis,

ii.  Municipalité régionale de comté de La Vallée-de-la-Gatineau, or

ii.1.  Municipalité régionale de comté des Basques,

ii.2.  Municipalité régionale de comté de La Matanie,

iii.  Municipalité régionale de comté de Pontiac,

iv.  Municipalité régionale de comté de Rimouski-Neigette,

v.  Municipalité régionale de comté de Rivière-du-Loup, or

vi.  Municipalité régionale de comté de Témiscouata;

“salary or wages” in relation to a qualified corporation for a taxation year or a qualified partnership for a fiscal period means the aggregate of all amounts each of which is an amount (in the definitions of “manufacturing or processing salary or wages” and “metal manufacturing salary or wages” referred to as the “gross revenue” of an employee) incurred by the corporation in the taxation year or the partnership in the fiscal period, in respect of an employee of the corporation or partnership, as the case may be, and included in computing the employee’s income under Chapters I and II of Title II of Book III, except, in the case of an employee of a corporation, a remuneration based on profits or a bonus, where the employee is a specified shareholder of the corporation in the taxation year;

“smelting” means any processing of an ore or concentrate in the course of which the charge is melted and chemically converted to produce a slag and a matte or metal containing impurities;

“specified member” of a corporation that is a cooperative, in a taxation year, means a member having, directly or indirectly, at any time in the year, at least 10% of the votes at a meeting of the members of the cooperative;

“total taxes” of a corporation for a taxation year means, subject to the ninth paragraph, the aggregate of its tax payable under this Part for the year and of its tax payable under Parts IV, IV.1, VI and VI.1 for the year;

“unused portion of the tax credit” of a corporation for a taxation year means the amount by which the total amount that the corporation would be deemed to have paid to the Minister for that year under the first paragraph of sections 1029.8.36.166.43 and 1029.8.36.166.44 if no reference were made to the third paragraph of those sections, exceeds the corporation’s maximum tax credit amount for the year.

A property that is acquired by a qualified corporation or a qualified partnership and that meets the conditions mentioned in the definition of “qualified property” in the first paragraph and those mentioned in the definition of “specified property” in the first paragraph of section 1029.8.36.166.60.36 is a qualified property only if the corporation or the qualified corporations that are members of the partnership, as the case may be, so elect in the prescribed form containing prescribed information that is enclosed with either of the following documents, as applicable:

(a)  in the case of the corporation, the fiscal return the corporation is required to file under this Part for its first taxation year in which it incurred expenses to acquire the property; or

(b)  in the case of the corporations that are members of the partnership, the information return that the members of the partnership are required to file under section 1086R78 of the Regulation respecting the Taxation Act for the partnership’s first fiscal period in which it incurred expenses to acquire the property.

For the purposes of the second paragraph, an election made by a qualified corporation that is a member of a partnership is deemed to have been made by each qualified corporation that is a member of the partnership.

However, the election referred to in the second paragraph may not be made for a particular taxation year of the qualified corporation or a particular fiscal period of the qualified partnership where

(a)  the qualified corporation or a qualified corporation that is a member of the qualified partnership is deemed to have paid an amount to the Minister under section 1029.8.36.166.60.48 or 1029.8.36.166.60.49 in respect of expenses incurred in the particular year or particular fiscal period, or in a preceding taxation year or fiscal period, as the case may be; or

(b)  if the qualified corporation or qualified partnership is associated in the particular year or particular fiscal period with one or more other corporations or partnerships, one of the following corporations is deemed to have paid an amount to the Minister under section 1029.8.36.166.60.48 or 1029.8.36.166.60.49 in respect of expenses incurred in a taxation year or fiscal period, as the case may be, that ends at or before the end of that particular year or particular fiscal period:

i.  a corporation that is associated with it, or

ii.  a corporation that is a member of a partnership that is associated with it.

For the purposes of paragraph c of the definition of “qualified property” in the first paragraph, a property that is acquired in connection with the carrying out of a large investment project is deemed to be used in the course of carrying on a recognized business referred to in that paragraph that the corporation or partnership begins to carry on at a particular time and that relates to the large investment project, if the expenditures of a capital nature for its acquisition are incurred by the corporation or partnership in the period that begins at the beginning of the carrying out of the project and ends immediately before the particular time.

For the purposes of the definition of “eligible expenses” in the first paragraph, the following rules apply:

(a)  the expenses that are included, at the end of a taxation year or fiscal period, in the capital cost of a property do not include the expenses so included under section 180 or 182; and

(b)  the expenses incurred to acquire a property must be incurred,

i.  where the property is acquired to be used mainly in a resource region, before 1 January 2023, or

ii.  in any other case, before 1 January 2017, or after 15 August 2018 and before 1 January 2020.

For the purposes of the definition of “expenses eligible for an additional increase” in the first paragraph, are excluded eligible expenses incurred in respect of a property before 8 October 2013 or after 7 October 2013 where the property is acquired pursuant to a written obligation entered into before 8 October 2013 or where the construction of the property, by or on behalf of the purchaser, had begun by 7 October 2013, and eligible expenses incurred in respect of a property after 4 June 2014, except eligible expenses incurred after that date and before 1 July 2015 if the property is acquired on or before 4 June 2014 or, otherwise, the property is acquired pursuant to a written obligation entered into on or before that date or the construction of the property, by or on behalf of the purchaser, had begun by that date.

The qualified property referred to in the definition of “expenses eligible for a temporary additional increase” in the first paragraph is a qualified property that

(a)  is acquired in the period that begins on 16 August 2018 and ends on 31 December 2019 otherwise than pursuant to an obligation in writing entered into before 16 August 2018 and that is not a property the construction of which, by or on behalf of the purchaser, had begun by 15 August 2018; or

(b)  is acquired in the calendar year 2020 and either the acquisition is made pursuant to an obligation in writing entered into in the period that begins on 16 August 2018 and ends on 31 December 2019 or the construction of the property, by or on behalf of the purchaser, began in that period.

Where a corporation is, for a taxation year, deemed to have paid an amount to the Minister under this division, otherwise than under any of sections 1029.8.36.166.55 to 1029.8.36.166.57, and an amount under Division II.6.14.2.3, otherwise than under any of sections 1029.8.36.166.60.60 to 1029.8.36.166.60.62, the corporation’s otherwise determined total taxes for the year are, for the purposes of this division, reduced by all or part of those amounts that the corporation takes into account in computing its total taxes for the year for the purposes of Division II.6.14.2.3.

For the purposes of the definition of “exclusion threshold” in the first paragraph, where qualified property is acquired in connection with a joint venture, the exclusion threshold in respect of the qualified property for a corporation or partnership holding a share in the property as a party to such a venture is deemed to be equal to the amount obtained by multiplying $12,500 by the proportion that corresponds to the share of the corporation or partnership, as the case may be, in the property.

For the purposes of the definitions of “manufacturing or processing salary or wages” and “metal manufacturing salary or wages” in the first paragraph, an employee who spends 90% or more of working time on manufacturing or processing activities or on metal manufacturing activities, as the case may be, is deemed to spend all working time on those activities.

2009, c. 15, s. 303; 2010, c. 5, s. 159; 2010, c. 25, s. 171; 2011, c. 6, s. 190; 2011, c. 34, s. 92; 2012, c. 8, s. 229; 2013, c. 10, s. 122; I.N. 2015-05-01; 2015, c. 21, s. 459; 2015, c. 24, s. 142; I.N. 2016-07-01; 2017, c. 1, s. 291; 2017, c. 29, s. 183; 2019, c. 14, s. 360; 2020, c. 16, s. 148; 2019, c. 14, s. 360; 2021, c. 14, s. 147; 2021, c. 18, s. 129.

2021-06-02

1029.8.36.166.40. In this division,

“aluminum producing corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an aluminum producing business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“associated group” in a taxation year has the meaning assigned by section 1029.8.36.166.41;

“eligible expenses” of a corporation for a particular taxation year or of a partnership for a particular fiscal period, in respect of a qualified property, means

(a)  for a corporation, the amount by which the excluded expense amount relating to the qualified property in respect of the corporation for the particular year is exceeded by the aggregate of the following expenses, except expenses incurred with a person with whom the corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the corporation in the particular taxation year to acquire the qualified property that are included, at the end of that year, in the capital cost of the property and that are paid in the particular year,

ii.  the amount by which the expenses incurred by the corporation in the particular taxation year, or in a preceding taxation year for which the corporation was a qualified corporation, to acquire the qualified property that are included, at the end of the particular year or of the preceding year, as the case may be, in the capital cost of the property and that are paid after the end of the particular year or of the preceding year, as the case may be, but not later than 18 months after the end of that year, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the corporation’s eligible expenses in respect of which the corporation would be deemed to have paid an amount to the Minister under section 1029.8.36.166.43 for a taxation year preceding the particular year if that section were read without reference to its third paragraph, and

iii.  the expenses incurred by the corporation to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular taxation year, if the expenses are paid more than 18 months after the end of the corporation’s taxation year in which they were incurred and for which the corporation was a qualified corporation; and

(b)  for a partnership, the amount by which the excluded expense amount relating to the qualified property in respect of the partnership for the particular fiscal period is exceeded by the aggregate of the following expenses, except expenses incurred with a corporation that is a member of the partnership or with a person with whom such a corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the partnership in the particular fiscal period to acquire the qualified property that are included, at the end of that fiscal period, in the capital cost of the property and that are paid in that fiscal period,

ii.  the amount by which the expenses incurred by the partnership in the particular fiscal period, or in a preceding fiscal period for which the partnership was a qualified partnership, to acquire the qualified property that are included, at the end of the particular fiscal period or of the preceding fiscal period, as the case may be, in the capital cost of the property and that are paid after the end of the particular fiscal period or of the preceding fiscal period, as the case may be, but not later than 18 months after the end of that fiscal period, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the partnership’s eligible expenses in respect of which a corporation that is a member of the partnership would be deemed to have paid an amount to the Minister under section 1029.8.36.166.44 for a taxation year preceding that in which the particular fiscal period ends, if that section were read without reference to its third and sixth paragraphs and if, where the corporation was not a qualified corporation for the preceding taxation year, the corporation had been a qualified corporation for the preceding taxation year, and

iii.  the expenses incurred by the partnership to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular fiscal period, if the expenses are paid more than 18 months after the end of the partnership’s fiscal period in which they were incurred and for which the partnership was a qualified partnership;

“excluded corporation” for a taxation year means

(a)  a corporation that is exempt from tax for the year under Book VIII;

(b)  a corporation that would be exempt from tax for the year under section 985, but for section 192;

(c)  an aluminum producing corporation for the year;

(d)  an oil refining corporation for the year; or

(e)  a corporation that was carrying on a recognized business, for the purposes of Division II.6.6.6.1, before 1 April 2008 and, if the taxation year is the one in which the calendar year 2008 or 2009 ends, that has not made an election under section 1029.8.36.72.82.3.1 for the year or a preceding taxation year or, if the taxation year is the one in which the calendar year 2010 ends, that has made an election under section 1029.8.36.72.82.3.1.1 for the year, or that is associated with such a corporation in the year;

“excluded expense amount” relating to qualified property means

(a)  in respect of a corporation, for a taxation year, or a partnership, for a fiscal period, an amount equal to zero, where the qualified property is acquired before 3 December 2014 or after 2 December 2014 pursuant to an obligation in writing entered into on or before 2 December 2014, or where the construction of the qualified property, by or on behalf of the purchaser, has begun on that date;

(b)  in respect of a corporation, for a taxation year, the lesser of the following amounts, where the qualified property is not referred to in paragraph a:

i.  an amount that would be equal to the corporation’s eligible expenses in respect of that property for the taxation year, if the definition of “eligible expenses” were read without reference to “the amount by which the excluded expense amount relating to the qualified property in respect of the corporation for the particular year is exceeded by” in the portion of its paragraph a before subparagraph i, and

ii.  an amount equal to the amount by which the exclusion threshold in respect of the qualified property exceeds the aggregate of all amounts each of which is the excluded expense amount relating to the qualified property in respect of the corporation for each preceding taxation year; and

(c)  in respect of a partnership, for a fiscal period, the lesser of the following amounts, where the qualified property is not referred to in paragraph a:

i.  an amount that would be equal to the partnership’s eligible expenses in respect of that property for the fiscal period, if the definition of “eligible expenses” were read without reference to “the amount by which the excluded expense amount relating to the qualified property in respect of the partnership for the particular fiscal period is exceeded by” in the portion of its paragraph b before subparagraph i, and

ii.  an amount equal to the amount by which the exclusion threshold in respect of the qualified property exceeds the aggregate of all amounts each of which is the excluded expense amount relating to the qualified property in respect of the partnership for each preceding fiscal period;

“excluded partnership” for a fiscal period means a partnership that, at any time in the fiscal period after 13 March 2008, carries on an aluminum producing business or an oil refining business;

“exclusion threshold” in respect of qualified property means an amount equal to $12,500;

“expenses eligible for an additional increase” of a corporation for a taxation year or of a partnership for a fiscal period, in respect of a qualified property, means the portion of the eligible expenses of the corporation for the year or of the partnership for the fiscal period, in respect of the property, that are incurred

(a)  by the corporation in a taxation year for which it is a qualified manufacturing corporation; or

(b)  by the partnership in a fiscal period for which it is a qualified manufacturing partnership;

“expenses eligible for a temporary additional increase” of a corporation for a taxation year or of a partnership for a fiscal period, in respect of a qualified property described in the eighth paragraph, means the portion of the eligible expenses of the corporation for the year or of the partnership for the fiscal period, in respect of the property, that are incurred after 15 August 2018 and before 1 January 2020

(a)  by the corporation in a taxation year for which it is a qualified metal manufacturing sector corporation; or

(b)  by the partnership in a fiscal period for which it is a qualified metal manufacturing sector partnership;

“hydrometallurgy” means any processing of an ore or concentrate that produces a metal, metallic salt or metallic compound by carrying out a chemical reaction in an aqueous or organic solution;

“large investment project” has the meaning assigned by the first paragraph of section 737.18.17.1;

“limit relating to an unused portion” in respect of a corporation for a taxation year means the aggregate of its total taxes for the year and of the amount determined for the year in its respect under the second paragraph of section 1029.8.36.166.42;

“manufacturing or processing salary or wages” in relation to a qualified corporation for a taxation year or a qualified partnership for a fiscal period means the portion of the salary or wages in relation to the qualified corporation for the taxation year or the qualified partnership for the fiscal period that corresponds to the aggregate of all amounts each of which is equal to the result obtained by multiplying the gross revenue of an employee of the corporation or partnership, as the case may be, by the proportion that the employee’s working time spent on manufacturing or processing activities, other than activities listed in section 130R12 of the Regulation respecting the Taxation Act (chapter I-3, r. 1), in the taxation year or fiscal period is of all the employee’s working time in that year or period;

“maximum tax credit amount” of a corporation for a taxation year means the aggregate of the amount by which its total taxes for the year exceed the amount it is deemed to have paid to the Minister for the year under section 1029.8.36.166.46, and of the amount determined for the year in its respect under the first paragraph of section 1029.8.36.166.42;

“metal manufacturing activities” of a corporation or a partnership means the following activities:

(a)  the primary metal manufacturing activities that are included in the group described under code 331 of the North American Industry Classification System (NAICS) Canada, as amended from time to time and published by Statistics Canada; and

(b)  the fabricated metal product manufacturing activities that are included in the group described under code 332 of the publication mentioned in paragraph a;

“metal manufacturing salary or wages” in relation to a qualified corporation for a taxation year or a qualified partnership for a fiscal period means the portion of the salary or wages in relation to the qualified corporation for the taxation year or the qualified partnership for the fiscal period that corresponds to the aggregate of all amounts each of which is equal to the result obtained by multiplying the gross revenue of an employee of the corporation or partnership, as the case may be, by the proportion that the employee’s working time spent on metal manufacturing activities in the taxation year or fiscal period is of all the employee’s working time in that year or period;

“oil refining corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an oil refining business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“proportion of the activities relating to the metal manufacturing sector” of a qualified corporation for a taxation year or of a qualified partnership for a fiscal period means the proportion, expressed as a percentage, that the metal manufacturing salary or wages in relation to the corporation for the taxation year or to the partnership for the fiscal period is of the salary or wages in relation to the corporation for that year or to the partnership for that period;

“qualified corporation” for a taxation year means a corporation, other than an excluded corporation for the year, that, in the year, carries on a business in Québec and has an establishment in Québec;

“qualified manufacturing corporation” for a taxation year means a qualified corporation, for the year, in respect of which the proportion of the manufacturing or processing activities that the manufacturing or processing salary or wages in relation to the corporation for the year is of the salary or wages in relation to the corporation for the year, exceeds 50%;

“qualified manufacturing partnership” for a fiscal period means a qualified partnership, for the fiscal period, in respect of which the proportion of the manufacturing or processing activities that the manufacturing or processing salary or wages in relation to the partnership for the fiscal period is of the salary or wages in relation to the partnership for the fiscal period, exceeds 50%;

“qualified metal manufacturing sector corporation” for a taxation year means a qualified corporation for the year in respect of which the proportion of the activities relating to the metal manufacturing sector for the year exceeds 50%;

“qualified metal manufacturing sector partnership” for a fiscal period means a qualified partnership for the fiscal period in respect of which the proportion of the activities relating to the metal manufacturing sector for that period exceeds 50%;

“qualified partnership” for a fiscal period means a partnership, other than an excluded partnership for the fiscal period, that, in the fiscal period, carries on a business in Québec and has an establishment in Québec;

“qualified property” of a corporation or a partnership means, subject to the second paragraph, a property that

(a)  is acquired by the corporation or partnership in a period that is,

i.  if the property is referred to in paragraph a.1 because of the application of subparagraph i of that paragraph and is not a property acquired pursuant to an obligation in writing entered into before 14 March 2008 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 13 March 2008, any of the following periods:

(1)  where the property is acquired to be used mainly in a resource region, the period that begins on 14 March 2008 and ends on 31 December 2022, or

(2)  in any other case, the period that begins on 14 March 2008 and ends on 31 December 2016 or, unless it is a property acquired pursuant to an obligation in writing entered into before 16 August 2018 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 15 August 2018, the period that begins on 16 August 2018 and ends on 31 December 2019 or, if it is a property acquired pursuant to an obligation in writing entered into after 15 August 2018 and before 1 January 2020 or the construction of which, if applicable, by or on behalf of the purchaser, began in the latter period, 31 December 2020,

ii.  if the property is referred to in paragraph a.1 because of the application of subparagraph i.1 of that paragraph, any of the following periods:

(1)  where the property is acquired to be used mainly in a resource region, the period that begins on 28 January 2009 and ends on 31 December 2022, or

(2)  in any other case, the period that begins on 28 January 2009 and ends on 31 December 2016 or, unless it is a property acquired pursuant to an obligation in writing entered into before 16 August 2018 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 15 August 2018, the period that begins on 16 August 2018 and ends on 31 December 2019 or, if it is a property acquired pursuant to an obligation in writing entered into after 15 August 2018 and before 1 January 2020 or the construction of which, if applicable, by or on behalf of the purchaser, began in the latter period, 31 December 2020, or

iii.  if the property is referred to in paragraph a.1 because of the application of subparagraph ii of that paragraph and is not a property acquired pursuant to an obligation in writing entered into before 21 March 2012 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 20 March 2012, any of the following periods:

(1)  where the property is acquired to be used mainly in a resource region, the period that begins on 21 March 2012 and ends on 31 December 2022, or

(2)  in any other case, the period that begins on 21 March 2012 and ends on 31 December 2016 or, unless it is a property acquired pursuant to an obligation in writing entered into before 16 August 2018 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 15 August 2018, the period that begins on 16 August 2018 and ends on 31 December 2019 or, if it is a property acquired pursuant to an obligation in writing entered into after 15 August 2018 and before 1 January 2020 or the construction of which, if applicable, by or on behalf of the purchaser, began in the latter period, 31 December 2020;

(a.1)  but for section 93.6, would be included

i.  in any of Classes 29, 43 and 53 of Schedule B to the Regulation respecting the Taxation Act (chapter I-3, r. 1),

i.1.  in Class 50 or 52 of Schedule B to the Regulation respecting the Taxation Act, but could be included, but for section 93.6, in Class 29 of that Schedule under subparagraph vi of subparagraph b of the first paragraph of that class if that subparagraph vi were read as if “28 January 2009” were replaced by “either 1 January 2021 or, where the property is acquired to be used mainly in a resource region, within the meaning of the first paragraph of section 1029.8.36.166.40 of the Act, 1 January 2023” and as if no reference were made to subparagraph c of that paragraph, or

ii.  in Class 43 of Schedule B to the Regulation respecting the Taxation Act if subparagraphs i and ii of paragraph b of that class were read as follows:

“i. would be included in Class 10 under subparagraph e of the second paragraph of that class, if this schedule were read without reference to this paragraph and subparagraphs a, b and e of the first paragraph of Class 41, and

“ii. at the time of its acquisition, may reasonably be expected to be used entirely in Canada and primarily for the purposes of smelting, refining or hydrometallurgy activities in respect of ore (other than ore from a gold or silver mine) extracted from a mineral resource located in Canada.”;

(b)  begins to be used within a reasonable time after being acquired;

(c)  is used solely in Québec and mainly in the course of carrying on a business, other than a recognized business in connection with which a large investment project is carried out or is in the process of being carried out;

(c.1)  is not used in the course of operating an ethanol plant;

(c.2)  is not used in the course of operating a biodiesel fuel plant;

(c.3)  is not used in the course of operating a pyrolysis oil plant; and

(d)  was not, before its acquisition, used for any purpose or acquired to be used or leased for any purpose whatever;

“recognized business” has the meaning assigned by the first paragraph of section 737.18.17.1;

“refining” means any processing of a product from a smelting or concentration operation to remove impurities, which produces very high grade metal;

“resource region” means

(a)  one of the following administrative regions described in the Décret concernant la révision des limites des régions administratives du Québec (chapitre D-11, r. 1):

i.  (subparagraph repealed),

ii.  administrative region 02 Saguenay-Lac-Saint-Jean,

iii.  administrative region 04 Mauricie,

iv.  administrative region 08 Abitibi-Témiscamingue,

v.  administrative region 09 Côte-Nord,

vi.  administrative region 10 Nord-du-Québec, or

vii.  administrative region 11 Gaspésie-Îles-de-la-Madeleine; or

(b)  one of the following regional county municipalities:

i.  Municipalité régionale de comté d’Antoine-Labelle,

i.1.  Municipalité régionale de comté de Kamouraska,

i.2.  Municipalité régionale de comté de La Matapédia,

i.3.  Municipalité régionale de comté de La Mitis,

ii.  Municipalité régionale de comté de La Vallée-de-la-Gatineau, or

ii.1.  Municipalité régionale de comté des Basques,

ii.2.  Municipalité régionale de comté de La Matanie,

iii.  Municipalité régionale de comté de Pontiac,

iv.  Municipalité régionale de comté de Rimouski-Neigette,

v.  Municipalité régionale de comté de Rivière-du-Loup, or

vi.  Municipalité régionale de comté de Témiscouata;

“salary or wages” in relation to a qualified corporation for a taxation year or a qualified partnership for a fiscal period means the aggregate of all amounts each of which is an amount (in the definitions of “manufacturing or processing salary or wages” and “metal manufacturing salary or wages” referred to as the “gross revenue” of an employee) incurred by the corporation in the taxation year or the partnership in the fiscal period, in respect of an employee of the corporation or partnership, as the case may be, and included in computing the employee’s income under Chapters I and II of Title II of Book III, except a remuneration based on profits or a bonus, where the remuneration or bonus relates, as the case may be, to an employee who is a specified shareholder of the corporation in the taxation year or a member of the partnership that is entitled, directly or indirectly, to a share of the income or of the loss of the partnership for the fiscal period of at least 10%;

“smelting” means any processing of an ore or concentrate in the course of which the charge is melted and chemically converted to produce a slag and a matte or metal containing impurities;

“specified member” of a corporation that is a cooperative, in a taxation year, means a member having, directly or indirectly, at any time in the year, at least 10% of the votes at a meeting of the members of the cooperative;

“total taxes” of a corporation for a taxation year means, subject to the ninth paragraph, the aggregate of its tax payable under this Part for the year and of its tax payable under Parts IV, IV.1, VI and VI.1 for the year;

“unused portion of the tax credit” of a corporation for a taxation year means the amount by which the total amount that the corporation would be deemed to have paid to the Minister for that year under the first paragraph of sections 1029.8.36.166.43 and 1029.8.36.166.44 if no reference were made to the third paragraph of those sections, exceeds the corporation’s maximum tax credit amount for the year.

A property that is acquired by a qualified corporation or a qualified partnership and that meets the conditions mentioned in the definition of “qualified property” in the first paragraph and those mentioned in the definition of “specified property” in the first paragraph of section 1029.8.36.166.60.36 is a qualified property only if the corporation or the qualified corporations that are members of the partnership, as the case may be, so elect in the prescribed form containing prescribed information that is enclosed with either of the following documents, as applicable:

(a)  in the case of the corporation, the fiscal return the corporation is required to file under this Part for its first taxation year in which it incurred expenses to acquire the property; or

(b)  in the case of the corporations that are members of the partnership, the information return that the members of the partnership are required to file under section 1086R78 of the Regulation respecting the Taxation Act for the partnership’s first fiscal period in which it incurred expenses to acquire the property.

For the purposes of the second paragraph, an election made by a qualified corporation that is a member of a partnership is deemed to have been made by each qualified corporation that is a member of the partnership.

However, the election referred to in the second paragraph may not be made for a particular taxation year of the qualified corporation or a particular fiscal period of the qualified partnership where

(a)  the qualified corporation or a qualified corporation that is a member of the qualified partnership is deemed to have paid an amount to the Minister under section 1029.8.36.166.60.48 or 1029.8.36.166.60.49 in respect of expenses incurred in the particular year or particular fiscal period, or in a preceding taxation year or fiscal period, as the case may be; or

(b)  if the qualified corporation or qualified partnership is associated in the particular year or particular fiscal period with one or more other corporations or partnerships, one of the following corporations is deemed to have paid an amount to the Minister under section 1029.8.36.166.60.48 or 1029.8.36.166.60.49 in respect of expenses incurred in a taxation year or fiscal period, as the case may be, that ends at or before the end of that particular year or particular fiscal period:

i.  a corporation that is associated with it, or

ii.  a corporation that is a member of a partnership that is associated with it.

For the purposes of paragraph c of the definition of “qualified property” in the first paragraph, a property that is acquired in connection with the carrying out of a large investment project is deemed to be used in the course of carrying on a recognized business referred to in that paragraph that the corporation or partnership begins to carry on at a particular time and that relates to the large investment project, if the expenditures of a capital nature for its acquisition are incurred by the corporation or partnership in the period that begins at the beginning of the carrying out of the project and ends immediately before the particular time.

For the purposes of the definition of “eligible expenses” in the first paragraph, the following rules apply:

(a)  the expenses that are included, at the end of a taxation year or fiscal period, in the capital cost of a property do not include the expenses so included under section 180 or 182; and

(b)  the expenses incurred to acquire a property must be incurred,

i.  where the property is acquired to be used mainly in a resource region, before 1 January 2023, or

ii.  in any other case, before 1 January 2017, or after 15 August 2018 and before 1 January 2020.

For the purposes of the definition of “expenses eligible for an additional increase” in the first paragraph, are excluded eligible expenses incurred in respect of a property before 8 October 2013 or after 7 October 2013 where the property is acquired pursuant to a written obligation entered into before 8 October 2013 or where the construction of the property, by or on behalf of the purchaser, had begun by 7 October 2013, and eligible expenses incurred in respect of a property after 4 June 2014, except eligible expenses incurred after that date and before 1 July 2015 if the property is acquired on or before 4 June 2014 or, otherwise, the property is acquired pursuant to a written obligation entered into on or before that date or the construction of the property, by or on behalf of the purchaser, had begun by that date.

The qualified property referred to in the definition of “expenses eligible for a temporary additional increase” in the first paragraph is a qualified property that

(a)  is acquired in the period that begins on 16 August 2018 and ends on 31 December 2019 otherwise than pursuant to an obligation in writing entered into before 16 August 2018 and that is not a property the construction of which, by or on behalf of the purchaser, had begun by 15 August 2018; or

(b)  is acquired in the calendar year 2020 and either the acquisition is made pursuant to an obligation in writing entered into in the period that begins on 16 August 2018 and ends on 31 December 2019 or the construction of the property, by or on behalf of the purchaser, began in that period.

Where a corporation is, for a taxation year, deemed to have paid an amount to the Minister under this division, otherwise than under any of sections 1029.8.36.166.55 to 1029.8.36.166.57, and an amount under Division II.6.14.2.3, otherwise than under any of sections 1029.8.36.166.60.60 to 1029.8.36.166.60.62, the corporation’s otherwise determined total taxes for the year are, for the purposes of this division, reduced by all or part of those amounts that the corporation takes into account in computing its total taxes for the year for the purposes of Division II.6.14.2.3.

For the purposes of the definition of “exclusion threshold” in the first paragraph, where qualified property is acquired in connection with a joint venture, the exclusion threshold in respect of the qualified property for a corporation or partnership holding a share in the property as a party to such a venture is deemed to be equal to the amount obtained by multiplying $12,500 by the proportion that corresponds to the share of the corporation or partnership, as the case may be, in the property.

For the purposes of the definitions of “manufacturing or processing salary or wages” and “metal manufacturing salary or wages” in the first paragraph, an employee who spends 90% or more of working time on manufacturing or processing activities or on metal manufacturing activities, as the case may be, is deemed to spend all working time on those activities.

2009, c. 15, s. 303; 2010, c. 5, s. 159; 2010, c. 25, s. 171; 2011, c. 6, s. 190; 2011, c. 34, s. 92; 2012, c. 8, s. 229; 2013, c. 10, s. 122; I.N. 2015-05-01; 2015, c. 21, s. 459; 2015, c. 24, s. 142; I.N. 2016-07-01; 2017, c. 1, s. 291; 2017, c. 29, s. 183; 2019, c. 14, s. 360; 2020, c. 16, s. 148; 2019, c. 14, s. 360; 2021, c. 14, s. 147.

2021-01-01

1029.8.36.166.40. In this division,

“aluminum producing corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an aluminum producing business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“associated group” in a taxation year has the meaning assigned by section 1029.8.36.166.41;

“eligible expenses” of a corporation for a particular taxation year or of a partnership for a particular fiscal period, in respect of a qualified property, means

(a)  for a corporation, the amount by which the excluded expense amount relating to the qualified property in respect of the corporation for the particular year is exceeded by the aggregate of the following expenses, except expenses incurred with a person with whom the corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the corporation in the particular taxation year to acquire the qualified property that are included, at the end of that year, in the capital cost of the property and that are paid in the particular year,

ii.  the amount by which the expenses incurred by the corporation in the particular taxation year, or in a preceding taxation year for which the corporation was a qualified corporation, to acquire the qualified property that are included, at the end of the particular year or of the preceding year, as the case may be, in the capital cost of the property and that are paid after the end of the particular year or of the preceding year, as the case may be, but not later than 18 months after the end of that year, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the corporation’s eligible expenses in respect of which the corporation would be deemed to have paid an amount to the Minister under section 1029.8.36.166.43 for a taxation year preceding the particular year if that section were read without reference to its third paragraph, and

iii.  the expenses incurred by the corporation to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular taxation year, if the expenses are paid more than 18 months after the end of the corporation’s taxation year in which they were incurred and for which the corporation was a qualified corporation; and

(b)  for a partnership, the amount by which the excluded expense amount relating to the qualified property in respect of the partnership for the particular fiscal period is exceeded by the aggregate of the following expenses, except expenses incurred with a corporation that is a member of the partnership or with a person with whom such a corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the partnership in the particular fiscal period to acquire the qualified property that are included, at the end of that fiscal period, in the capital cost of the property and that are paid in that fiscal period,

ii.  the amount by which the expenses incurred by the partnership in the particular fiscal period, or in a preceding fiscal period for which the partnership was a qualified partnership, to acquire the qualified property that are included, at the end of the particular fiscal period or of the preceding fiscal period, as the case may be, in the capital cost of the property and that are paid after the end of the particular fiscal period or of the preceding fiscal period, as the case may be, but not later than 18 months after the end of that fiscal period, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the partnership’s eligible expenses in respect of which a corporation that is a member of the partnership would be deemed to have paid an amount to the Minister under section 1029.8.36.166.44 for a taxation year preceding that in which the particular fiscal period ends, if that section were read without reference to its third and sixth paragraphs and if, where the corporation was not a qualified corporation for the preceding taxation year, the corporation had been a qualified corporation for the preceding taxation year, and

iii.  the expenses incurred by the partnership to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular fiscal period, if the expenses are paid more than 18 months after the end of the partnership’s fiscal period in which they were incurred and for which the partnership was a qualified partnership;

“excluded corporation” for a taxation year means

(a)  a corporation that is exempt from tax for the year under Book VIII;

(b)  a corporation that would be exempt from tax for the year under section 985, but for section 192;

(c)  an aluminum producing corporation for the year;

(d)  an oil refining corporation for the year; or

(e)  a corporation that was carrying on a recognized business, for the purposes of Division II.6.6.6.1, before 1 April 2008 and, if the taxation year is the one in which the calendar year 2008 or 2009 ends, that has not made an election under section 1029.8.36.72.82.3.1 for the year or a preceding taxation year or, if the taxation year is the one in which the calendar year 2010 ends, that has made an election under section 1029.8.36.72.82.3.1.1 for the year, or that is associated with such a corporation in the year;

“excluded expense amount” relating to qualified property means

(a)  in respect of a corporation, for a taxation year, or a partnership, for a fiscal period, an amount equal to zero, where the qualified property is acquired before 3 December 2014 or after 2 December 2014 pursuant to an obligation in writing entered into on or before 2 December 2014, or where the construction of the qualified property, by or on behalf of the purchaser, has begun on that date;

(b)  in respect of a corporation, for a taxation year, the lesser of the following amounts, where the qualified property is not referred to in paragraph a:

i.  an amount that would be equal to the corporation’s eligible expenses in respect of that property for the taxation year, if the definition of “eligible expenses” were read without reference to “the amount by which the excluded expense amount relating to the qualified property in respect of the corporation for the particular year is exceeded by” in the portion of its paragraph a before subparagraph i, and

ii.  an amount equal to the amount by which the exclusion threshold in respect of the qualified property exceeds the aggregate of all amounts each of which is the excluded expense amount relating to the qualified property in respect of the corporation for each preceding taxation year; and

(c)  in respect of a partnership, for a fiscal period, the lesser of the following amounts, where the qualified property is not referred to in paragraph a:

i.  an amount that would be equal to the partnership’s eligible expenses in respect of that property for the fiscal period, if the definition of “eligible expenses” were read without reference to “the amount by which the excluded expense amount relating to the qualified property in respect of the partnership for the particular fiscal period is exceeded by” in the portion of its paragraph b before subparagraph i, and

ii.  an amount equal to the amount by which the exclusion threshold in respect of the qualified property exceeds the aggregate of all amounts each of which is the excluded expense amount relating to the qualified property in respect of the partnership for each preceding fiscal period;

“excluded partnership” for a fiscal period means a partnership that, at any time in the fiscal period after 13 March 2008, carries on an aluminum producing business or an oil refining business;

“exclusion threshold” in respect of qualified property means an amount equal to $12,500;

“expenses eligible for an additional increase” of a corporation for a taxation year or of a partnership for a fiscal period, in respect of a qualified property, means the portion of the eligible expenses of the corporation for the year or of the partnership for the fiscal period, in respect of the property, that are incurred

(a)  by the corporation in a taxation year for which it is a qualified manufacturing corporation; or

(b)  by the partnership in a fiscal period for which it is a qualified manufacturing partnership;

“expenses eligible for a temporary additional increase” of a corporation for a taxation year or of a partnership for a fiscal period, in respect of a qualified property described in the fifth paragraph, means the portion of the eligible expenses of the corporation for the year or of the partnership for the fiscal period, in respect of the property, that are incurred after 15 August 2018 and before 1 January 2020

(a)  by the corporation in a taxation year for which it is a qualified metal manufacturing sector corporation; or

(b)  by the partnership in a fiscal period for which it is a qualified metal manufacturing sector partnership;

“hydrometallurgy” means any processing of an ore or concentrate that produces a metal, metallic salt or metallic compound by carrying out a chemical reaction in an aqueous or organic solution;

“large investment project” has the meaning assigned by the first paragraph of section 737.18.17.1;

“limit relating to an unused portion” in respect of a corporation for a taxation year means the aggregate of its total taxes for the year and of the amount determined for the year in its respect under the second paragraph of section 1029.8.36.166.42;

“manufacturing or processing salary or wages” in relation to a qualified corporation for a taxation year or a qualified partnership for a fiscal period means the portion of the salary or wages in relation to the qualified corporation for the taxation year or the qualified partnership for the fiscal period that corresponds to the aggregate of all amounts each of which is equal to the result obtained by multiplying the gross revenue of an employee of the corporation or partnership, as the case may be, by the proportion that the employee’s working time spent on manufacturing or processing activities, other than activities listed in section 130R12 of the Regulation respecting the Taxation Act (chapter I-3, r. 1), in the taxation year or fiscal period is of all the employee’s working time in that year or period;

“maximum tax credit amount” of a corporation for a taxation year means the aggregate of the amount by which its total taxes for the year exceed the amount it is deemed to have paid to the Minister for the year under section 1029.8.36.166.46, and of the amount determined for the year in its respect under the first paragraph of section 1029.8.36.166.42;

“metal manufacturing activities” of a corporation or a partnership means the following activities:

(a)  the primary metal manufacturing activities that are included in the group described under code 331 of the North American Industry Classification System (NAICS) Canada, as amended from time to time and published by Statistics Canada; and

(b)  the fabricated metal product manufacturing activities that are included in the group described under code 332 of the publication mentioned in paragraph a;

“metal manufacturing salary or wages” in relation to a qualified corporation for a taxation year or a qualified partnership for a fiscal period means the portion of the salary or wages in relation to the qualified corporation for the taxation year or the qualified partnership for the fiscal period that corresponds to the aggregate of all amounts each of which is equal to the result obtained by multiplying the gross revenue of an employee of the corporation or partnership, as the case may be, by the proportion that the employee’s working time spent on metal manufacturing activities in the taxation year or fiscal period is of all the employee’s working time in that year or period;

“oil refining corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an oil refining business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“proportion of the activities relating to the metal manufacturing sector” of a qualified corporation for a taxation year or of a qualified partnership for a fiscal period means the proportion, expressed as a percentage, that the metal manufacturing salary or wages in relation to the corporation for the taxation year or to the partnership for the fiscal period is of the salary or wages in relation to the corporation for that year or to the partnership for that period;

“qualified corporation” for a taxation year means a corporation, other than an excluded corporation for the year, that, in the year, carries on a business in Québec and has an establishment in Québec;

“qualified manufacturing corporation” for a taxation year means a qualified corporation, for the year, in respect of which the proportion of the manufacturing or processing activities that the manufacturing or processing salary or wages in relation to the corporation for the year is of the salary or wages in relation to the corporation for the year, exceeds 50%;

“qualified manufacturing partnership” for a fiscal period means a qualified partnership, for the fiscal period, in respect of which the proportion of the manufacturing or processing activities that the manufacturing or processing salary or wages in relation to the partnership for the fiscal period is of the salary or wages in relation to the partnership for the fiscal period, exceeds 50%;

“qualified metal manufacturing sector corporation” for a taxation year means a qualified corporation for the year in respect of which the proportion of the activities relating to the metal manufacturing sector for the year exceeds 50%;

“qualified metal manufacturing sector partnership” for a fiscal period means a qualified partnership for the fiscal period in respect of which the proportion of the activities relating to the metal manufacturing sector for that period exceeds 50%;

“qualified partnership” for a fiscal period means a partnership, other than an excluded partnership for the fiscal period, that, in the fiscal period, carries on a business in Québec and has an establishment in Québec;

“qualified property” of a corporation or a partnership means a property that

(a)  is acquired by the corporation or partnership in a period that is,

i.  if the property is referred to in paragraph a.1 because of the application of subparagraph i of that paragraph and is not a property acquired pursuant to an obligation in writing entered into before 14 March 2008 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 13 March 2008, any of the following periods:

(1)  where the property is acquired to be used mainly in a resource region, the period that begins on 14 March 2008 and ends on 31 December 2022, or

(2)  in any other case, the period that begins on 14 March 2008 and ends on 31 December 2016 or, unless it is a property acquired pursuant to an obligation in writing entered into before 16 August 2018 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 15 August 2018, the period that begins on 16 August 2018 and ends on 31 December 2019,

ii.  if the property is referred to in paragraph a.1 because of the application of subparagraph i.1 of that paragraph, any of the following periods:

(1)  where the property is acquired to be used mainly in a resource region, the period that begins on 28 January 2009 and ends on 31 December 2022, or

(2)  in any other case, the period that begins on 28 January 2009 and ends on 31 December 2016 or, unless it is a property acquired pursuant to an obligation in writing entered into before 16 August 2018 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 15 August 2018, the period that begins on 16 August 2018 and ends on 31 December 2019, or

iii.  if the property is referred to in paragraph a.1 because of the application of subparagraph ii of that paragraph and is not a property acquired pursuant to an obligation in writing entered into before 21 March 2012 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 20 March 2012, any of the following periods:

(1)  where the property is acquired to be used mainly in a resource region, the period that begins on 21 March 2012 and ends on 31 December 2022, or

(2)  in any other case, the period that begins on 21 March 2012 and ends on 31 December 2016 or, unless it is a property acquired pursuant to an obligation in writing entered into before 16 August 2018 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 15 August 2018, the period that begins on 16 August 2018 and ends on 31 December 2019;

(a.1)  but for section 93.6, would be included

i.  in any of Classes 29, 43 and 53 of Schedule B to the Regulation respecting the Taxation Act (chapter I-3, r. 1),

i.1.  in Class 50 or 52 of Schedule B to the Regulation respecting the Taxation Act, but could be included, but for section 93.6, in Class 29 of that Schedule under subparagraph vi of subparagraph b of the first paragraph of that class if that subparagraph vi were read as if “28 January 2009” were replaced by “either 1 January 2020 or, where the property is acquired to be used mainly in a resource region, within the meaning of the first paragraph of section 1029.8.36.166.40 of the Act, 1 January 2023” and as if no reference were made to subparagraph c of that paragraph, or

ii.  in Class 43 of Schedule B to the Regulation respecting the Taxation Act if subparagraphs i and ii of paragraph b of that class were read as follows:

“i. would be included in Class 10 under subparagraph e of the second paragraph of that class, if this schedule were read without reference to this paragraph and subparagraphs a, b and e of the first paragraph of Class 41, and

“ii. at the time of its acquisition, may reasonably be expected to be used entirely in Canada and primarily for the purposes of smelting, refining or hydrometallurgy activities in respect of ore (other than ore from a gold or silver mine) extracted from a mineral resource located in Canada.”;

(b)  begins to be used within a reasonable time after being acquired;

(c)  is used solely in Québec and mainly in the course of carrying on a business, other than a recognized business in connection with which a large investment project is carried out or is in the process of being carried out;

(c.1)  is not used in the course of operating an ethanol plant;

(c.2)  is not used in the course of operating a biodiesel fuel plant;

(c.3)  is not used in the course of operating a pyrolysis oil plant; and

(d)  was not, before its acquisition, used for any purpose or acquired to be used or leased for any purpose whatever;

“recognized business” has the meaning assigned by the first paragraph of section 737.18.17.1;

“refining” means any processing of a product from a smelting or concentration operation to remove impurities, which produces very high grade metal;

“resource region” means

(a)  one of the following administrative regions described in the Décret concernant la révision des limites des régions administratives du Québec (chapitre D-11, r. 1):

i.  (subparagraph repealed),

ii.  administrative region 02 Saguenay-Lac-Saint-Jean,

iii.  administrative region 04 Mauricie,

iv.  administrative region 08 Abitibi-Témiscamingue,

v.  administrative region 09 Côte-Nord,

vi.  administrative region 10 Nord-du-Québec, or

vii.  administrative region 11 Gaspésie-Îles-de-la-Madeleine; or

(b)  one of the following regional county municipalities:

i.  Municipalité régionale de comté d’Antoine-Labelle,

i.1.  Municipalité régionale de comté de Kamouraska,

i.2.  Municipalité régionale de comté de La Matapédia,

i.3.  Municipalité régionale de comté de La Mitis,

ii.  Municipalité régionale de comté de La Vallée-de-la-Gatineau, or

ii.1.  Municipalité régionale de comté des Basques,

ii.2.  Municipalité régionale de comté de La Matanie,

iii.  Municipalité régionale de comté de Pontiac,

iv.  Municipalité régionale de comté de Rimouski-Neigette,

v.  Municipalité régionale de comté de Rivière-du-Loup, or

vi.  Municipalité régionale de comté de Témiscouata;

“salary or wages” in relation to a qualified corporation for a taxation year or a qualified partnership for a fiscal period means the aggregate of all amounts each of which is an amount (in the definitions of “manufacturing or processing salary or wages” and “metal manufacturing salary or wages” referred to as the “gross revenue” of an employee) incurred by the corporation in the taxation year or the partnership in the fiscal period, in respect of an employee of the corporation or partnership, as the case may be, and included in computing the employee’s income under Chapters I and II of Title II of Book III, except a remuneration based on profits or a bonus, where the remuneration or bonus relates, as the case may be, to an employee who is a specified shareholder of the corporation in the taxation year or a member of the partnership that is entitled, directly or indirectly, to a share of the income or of the loss of the partnership for the fiscal period of at least 10%;

“smelting” means any processing of an ore or concentrate in the course of which the charge is melted and chemically converted to produce a slag and a matte or metal containing impurities;

“specified member” of a corporation that is a cooperative, in a taxation year, means a member having, directly or indirectly, at any time in the year, at least 10% of the votes at a meeting of the members of the cooperative;

“total taxes” of a corporation for a taxation year means the aggregate of its tax payable under this Part for the year and of its tax payable under Parts IV, IV.1, VI and VI.1 for the year;

“unused portion of the tax credit” of a corporation for a taxation year means the amount by which the total amount that the corporation would be deemed to have paid to the Minister for that year under the first paragraph of sections 1029.8.36.166.43 and 1029.8.36.166.44 if no reference were made to the third paragraph of those sections, exceeds the corporation’s maximum tax credit amount for the year.

For the purposes of paragraph c of the definition of “qualified property” in the first paragraph, a property that is acquired in connection with the carrying out of a large investment project is deemed to be used in the course of carrying on a recognized business referred to in that paragraph that the corporation or partnership begins to carry on at a particular time and that relates to the large investment project, if the expenditures of a capital nature for its acquisition are incurred by the corporation or partnership in the period that begins at the beginning of the carrying out of the project and ends immediately before the particular time.

For the purposes of the definition of “eligible expenses” in the first paragraph, the following rules apply:

(a)  the expenses that are included, at the end of a taxation year or fiscal period, in the capital cost of a property do not include the expenses so included under section 180 or 182; and

(b)  the expenses incurred to acquire a property must be incurred,

i.  where the property is acquired to be used mainly in a resource region, before 1 January 2023, or

ii.  in any other case, before 1 January 2017, or after 15 August 2018 and before 1 January 2020.

For the purposes of the definition of “expenses eligible for an additional increase” in the first paragraph, are excluded eligible expenses incurred in respect of a property before 8 October 2013 or after 7 October 2013 where the property is acquired pursuant to a written obligation entered into before 8 October 2013 or where the construction of the property, by or on behalf of the purchaser, had begun by 7 October 2013, and eligible expenses incurred in respect of a property after 4 June 2014, except eligible expenses incurred after that date and before 1 July 2015 if the property is acquired on or before 4 June 2014 or, otherwise, the property is acquired pursuant to a written obligation entered into on or before that date or the construction of the property, by or on behalf of the purchaser, had begun by that date.

The qualified property referred to in the definition of “expenses eligible for a temporary additional increase” in the first paragraph is a qualified property that is acquired after 15 August 2018 and before 1 January 2020 otherwise than pursuant to an obligation in writing entered into before 16 August 2018 and that is not a property the construction of which, by or on behalf of the purchaser, had begun by 15 August 2018.

For the purposes of the definition of “exclusion threshold” in the first paragraph, where qualified property is acquired in connection with a joint venture, the exclusion threshold in respect of the qualified property for a corporation or partnership holding a share in the property as a party to such a venture is deemed to be equal to the amount obtained by multiplying $12,500 by the proportion that corresponds to the share of the corporation or partnership, as the case may be, in the property.

For the purposes of the definitions of “manufacturing or processing salary or wages” and “metal manufacturing salary or wages” in the first paragraph, an employee who spends 90% or more of working time on manufacturing or processing activities or on metal manufacturing activities, as the case may be, is deemed to spend all working time on those activities.

2009, c. 15, s. 303; 2010, c. 5, s. 159; 2010, c. 25, s. 171; 2011, c. 6, s. 190; 2011, c. 34, s. 92; 2012, c. 8, s. 229; 2013, c. 10, s. 122; I.N. 2015-05-01; 2015, c. 21, s. 459; 2015, c. 24, s. 142; I.N. 2016-07-01; 2017, c. 1, s. 291; 2017, c. 29, s. 183; 2019, c. 14, s. 360; 2020, c. 16, s. 148; 2019, c. 14, s. 360.

2020-09-24

1029.8.36.166.40. In this division,

“aluminum producing corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an aluminum producing business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“associated group” in a taxation year has the meaning assigned by section 1029.8.36.166.41;

“eligible expenses” of a corporation for a particular taxation year or of a partnership for a particular fiscal period, in respect of a qualified property, means

(a)  for a corporation, the amount by which the excluded expense amount relating to the qualified property in respect of the corporation for the particular year is exceeded by the aggregate of the following expenses, except expenses incurred with a person with whom the corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the corporation in the particular taxation year to acquire the qualified property that are included, at the end of that year, in the capital cost of the property and that are paid in the particular year,

ii.  the amount by which the expenses incurred by the corporation in the particular taxation year, or in a preceding taxation year for which the corporation was a qualified corporation, to acquire the qualified property that are included, at the end of the particular year or of the preceding year, as the case may be, in the capital cost of the property and that are paid after the end of the particular year or of the preceding year, as the case may be, but not later than 18 months after the end of that year, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the corporation’s eligible expenses in respect of which the corporation would be deemed to have paid an amount to the Minister under section 1029.8.36.166.43 for a taxation year preceding the particular year if that section were read without reference to its third paragraph, and

iii.  the expenses incurred by the corporation to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular taxation year, if the expenses are paid more than 18 months after the end of the corporation’s taxation year in which they were incurred and for which the corporation was a qualified corporation; and

(b)  for a partnership, the amount by which the excluded expense amount relating to the qualified property in respect of the partnership for the particular fiscal period is exceeded by the aggregate of the following expenses, except expenses incurred with a corporation that is a member of the partnership or with a person with whom such a corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the partnership in the particular fiscal period to acquire the qualified property that are included, at the end of that fiscal period, in the capital cost of the property and that are paid in that fiscal period,

ii.  the amount by which the expenses incurred by the partnership in the particular fiscal period, or in a preceding fiscal period for which the partnership was a qualified partnership, to acquire the qualified property that are included, at the end of the particular fiscal period or of the preceding fiscal period, as the case may be, in the capital cost of the property and that are paid after the end of the particular fiscal period or of the preceding fiscal period, as the case may be, but not later than 18 months after the end of that fiscal period, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the partnership’s eligible expenses in respect of which a corporation that is a member of the partnership would be deemed to have paid an amount to the Minister under section 1029.8.36.166.44 for a taxation year preceding that in which the particular fiscal period ends, if that section were read without reference to its third and sixth paragraphs and if, where the corporation was not a qualified corporation for the preceding taxation year, the corporation had been a qualified corporation for the preceding taxation year, and

iii.  the expenses incurred by the partnership to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular fiscal period, if the expenses are paid more than 18 months after the end of the partnership’s fiscal period in which they were incurred and for which the partnership was a qualified partnership;

“excluded corporation” for a taxation year means

(a)  a corporation that is exempt from tax for the year under Book VIII;

(b)  a corporation that would be exempt from tax for the year under section 985, but for section 192;

(c)  an aluminum producing corporation for the year;

(d)  an oil refining corporation for the year; or

(e)  a corporation that was carrying on a recognized business, for the purposes of Division II.6.6.6.1, before 1 April 2008 and, if the taxation year is the one in which the calendar year 2008 or 2009 ends, that has not made an election under section 1029.8.36.72.82.3.1 for the year or a preceding taxation year or, if the taxation year is the one in which the calendar year 2010 ends, that has made an election under section 1029.8.36.72.82.3.1.1 for the year, or that is associated with such a corporation in the year;

“excluded expense amount” relating to qualified property means

(a)  in respect of a corporation, for a taxation year, or a partnership, for a fiscal period, an amount equal to zero, where the qualified property is acquired before 3 December 2014 or after 2 December 2014 pursuant to an obligation in writing entered into on or before 2 December 2014, or where the construction of the qualified property, by or on behalf of the purchaser, has begun on that date;

(b)  in respect of a corporation, for a taxation year, the lesser of the following amounts, where the qualified property is not referred to in paragraph a:

i.  an amount that would be equal to the corporation’s eligible expenses in respect of that property for the taxation year, if the definition of “eligible expenses” were read without reference to “the amount by which the excluded expense amount relating to the qualified property in respect of the corporation for the particular year is exceeded by” in the portion of its paragraph a before subparagraph i, and

ii.  an amount equal to the amount by which the exclusion threshold in respect of the qualified property exceeds the aggregate of all amounts each of which is the excluded expense amount relating to the qualified property in respect of the corporation for each preceding taxation year; and

(c)  in respect of a partnership, for a fiscal period, the lesser of the following amounts, where the qualified property is not referred to in paragraph a:

i.  an amount that would be equal to the partnership’s eligible expenses in respect of that property for the fiscal period, if the definition of “eligible expenses” were read without reference to “the amount by which the excluded expense amount relating to the qualified property in respect of the partnership for the particular fiscal period is exceeded by” in the portion of its paragraph b before subparagraph i, and

ii.  an amount equal to the amount by which the exclusion threshold in respect of the qualified property exceeds the aggregate of all amounts each of which is the excluded expense amount relating to the qualified property in respect of the partnership for each preceding fiscal period;

“excluded partnership” for a fiscal period means a partnership that, at any time in the fiscal period after 13 March 2008, carries on an aluminum producing business or an oil refining business;

“exclusion threshold” in respect of qualified property means an amount equal to $12,500;

“expenses eligible for an additional increase” of a corporation for a taxation year or of a partnership for a fiscal period, in respect of a qualified property, means the portion of the eligible expenses of the corporation for the year or of the partnership for the fiscal period, in respect of the property, that are incurred

(a)  by the corporation in a taxation year for which it is a qualified manufacturing corporation; or

(b)  by the partnership in a fiscal period for which it is a qualified manufacturing partnership;

“expenses eligible for a temporary additional increase” of a corporation for a taxation year or of a partnership for a fiscal period, in respect of a qualified property described in the fifth paragraph, means the portion of the eligible expenses of the corporation for the year or of the partnership for the fiscal period, in respect of the property, that are incurred after 15 August 2018 and before 1 January 2020

(a)  by the corporation in a taxation year for which it is a qualified metal manufacturing sector corporation; or

(b)  by the partnership in a fiscal period for which it is a qualified metal manufacturing sector partnership;

“hydrometallurgy” means any processing of an ore or concentrate that produces a metal, metallic salt or metallic compound by carrying out a chemical reaction in an aqueous or organic solution;

“large investment project” has the meaning assigned by the first paragraph of section 737.18.17.1;

“limit relating to an unused portion” in respect of a corporation for a taxation year means the aggregate of its total taxes for the year and of the amount determined for the year in its respect under the second paragraph of section 1029.8.36.166.42;

“major investment project” has the meaning assigned by the first paragraph of section 737.18.14;

“manufacturing or processing salary or wages” in relation to a qualified corporation for a taxation year or a qualified partnership for a fiscal period means the portion of the salary or wages in relation to the qualified corporation for the taxation year or the qualified partnership for the fiscal period that corresponds to the aggregate of all amounts each of which is equal to the result obtained by multiplying the gross revenue of an employee of the corporation or partnership, as the case may be, by the proportion that the employee’s working time spent on manufacturing or processing activities, other than activities listed in section 130R12 of the Regulation respecting the Taxation Act (chapter I-3, r. 1), in the taxation year or fiscal period is of all the employee’s working time in that year or period;

“maximum tax credit amount” of a corporation for a taxation year means the aggregate of the amount by which its total taxes for the year exceed the amount it is deemed to have paid to the Minister for the year under section 1029.8.36.166.46, and of the amount determined for the year in its respect under the first paragraph of section 1029.8.36.166.42;

“metal manufacturing activities” of a corporation or a partnership means the following activities:

(a)  the primary metal manufacturing activities that are included in the group described under code 331 of the North American Industry Classification System (NAICS) Canada, as amended from time to time and published by Statistics Canada; and

(b)  the fabricated metal product manufacturing activities that are included in the group described under code 332 of the publication mentioned in paragraph a;

“metal manufacturing salary or wages” in relation to a qualified corporation for a taxation year or a qualified partnership for a fiscal period means the portion of the salary or wages in relation to the qualified corporation for the taxation year or the qualified partnership for the fiscal period that corresponds to the aggregate of all amounts each of which is equal to the result obtained by multiplying the gross revenue of an employee of the corporation or partnership, as the case may be, by the proportion that the employee’s working time spent on metal manufacturing activities in the taxation year or fiscal period is of all the employee’s working time in that year or period;

“oil refining corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an oil refining business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“proportion of the activities relating to the metal manufacturing sector” of a qualified corporation for a taxation year or of a qualified partnership for a fiscal period means the proportion, expressed as a percentage, that the metal manufacturing salary or wages in relation to the corporation for the taxation year or to the partnership for the fiscal period is of the salary or wages in relation to the corporation for that year or to the partnership for that period;

“qualified corporation” for a taxation year means a corporation, other than an excluded corporation for the year, that, in the year, carries on a business in Québec and has an establishment in Québec;

“qualified manufacturing corporation” for a taxation year means a qualified corporation, for the year, in respect of which the proportion of the manufacturing or processing activities that the manufacturing or processing salary or wages in relation to the corporation for the year is of the salary or wages in relation to the corporation for the year, exceeds 50%;

“qualified manufacturing partnership” for a fiscal period means a qualified partnership, for the fiscal period, in respect of which the proportion of the manufacturing or processing activities that the manufacturing or processing salary or wages in relation to the partnership for the fiscal period is of the salary or wages in relation to the partnership for the fiscal period, exceeds 50%;

“qualified metal manufacturing sector corporation” for a taxation year means a qualified corporation for the year in respect of which the proportion of the activities relating to the metal manufacturing sector for the year exceeds 50%;

“qualified metal manufacturing sector partnership” for a fiscal period means a qualified partnership for the fiscal period in respect of which the proportion of the activities relating to the metal manufacturing sector for that period exceeds 50%;

“qualified partnership” for a fiscal period means a partnership, other than an excluded partnership for the fiscal period, that, in the fiscal period, carries on a business in Québec and has an establishment in Québec;

“qualified property” of a corporation or a partnership means a property that

(a)  is acquired by the corporation or partnership in a period that is,

i.  if the property is referred to in paragraph a.1 because of the application of subparagraph i of that paragraph and is not a property acquired pursuant to an obligation in writing entered into before 14 March 2008 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 13 March 2008, any of the following periods:

(1)  where the property is acquired to be used mainly in a resource region, the period that begins on 14 March 2008 and ends on 31 December 2022, or

(2)  in any other case, the period that begins on 14 March 2008 and ends on 31 December 2016 or, unless it is a property acquired pursuant to an obligation in writing entered into before 16 August 2018 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 15 August 2018, the period that begins on 16 August 2018 and ends on 31 December 2019,

ii.  if the property is referred to in paragraph a.1 because of the application of subparagraph i.1 of that paragraph, any of the following periods:

(1)  where the property is acquired to be used mainly in a resource region, the period that begins on 28 January 2009 and ends on 31 December 2022, or

(2)  in any other case, the period that begins on 28 January 2009 and ends on 31 December 2016 or, unless it is a property acquired pursuant to an obligation in writing entered into before 16 August 2018 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 15 August 2018, the period that begins on 16 August 2018 and ends on 31 December 2019, or

iii.  if the property is referred to in paragraph a.1 because of the application of subparagraph ii of that paragraph and is not a property acquired pursuant to an obligation in writing entered into before 21 March 2012 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 20 March 2012, any of the following periods:

(1)  where the property is acquired to be used mainly in a resource region, the period that begins on 21 March 2012 and ends on 31 December 2022, or

(2)  in any other case, the period that begins on 21 March 2012 and ends on 31 December 2016 or, unless it is a property acquired pursuant to an obligation in writing entered into before 16 August 2018 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 15 August 2018, the period that begins on 16 August 2018 and ends on 31 December 2019;

(a.1)  but for section 93.6, would be included

i.  in any of Classes 29, 43 and 53 of Schedule B to the Regulation respecting the Taxation Act (chapter I-3, r. 1),

i.1.  in Class 50 or 52 of Schedule B to the Regulation respecting the Taxation Act, but could be included, but for section 93.6, in Class 29 of that Schedule under subparagraph vi of subparagraph b of the first paragraph of that class if that subparagraph vi were read as if “28 January 2009” were replaced by “either 1 January 2020 or, where the property is acquired to be used mainly in a resource region, within the meaning of the first paragraph of section 1029.8.36.166.40 of the Act, 1 January 2023” and as if no reference were made to subparagraph c of that paragraph, or

ii.  in Class 43 of Schedule B to the Regulation respecting the Taxation Act if subparagraphs i and ii of paragraph b of that class were read as follows:

“i. would be included in Class 10 under subparagraph e of the second paragraph of that class, if this schedule were read without reference to this paragraph and subparagraphs a, b and e of the first paragraph of Class 41, and

“ii. at the time of its acquisition, may reasonably be expected to be used entirely in Canada and primarily for the purposes of smelting, refining or hydrometallurgy activities in respect of ore (other than ore from a gold or silver mine) extracted from a mineral resource located in Canada.”;

(b)  begins to be used within a reasonable time after being acquired;

(c)  is used solely in Québec and mainly in the course of carrying on a business, other than a recognized business in connection with which a major investment project or a large investment project, as the case may be, is carried out or is in the process of being carried out;

(c.1)  is not used in the course of operating an ethanol plant;

(c.2)  is not used in the course of operating a biodiesel fuel plant;

(c.3)  is not used in the course of operating a pyrolysis oil plant; and

(d)  was not, before its acquisition, used for any purpose or acquired to be used or leased for any purpose whatever;

“recognized business” has the meaning assigned by the first paragraph of section 737.18.14 or 737.18.17.1, as the case may be;

“refining” means any processing of a product from a smelting or concentration operation to remove impurities, which produces very high grade metal;

“resource region” means

(a)  one of the following administrative regions described in the Décret concernant la révision des limites des régions administratives du Québec (chapter D-11, r. 1):

i.  (subparagraph repealed),

ii.  administrative region 02 Saguenay-Lac-Saint-Jean,

iii.  administrative region 04 Mauricie,

iv.  administrative region 08 Abitibi-Témiscamingue,

v.  administrative region 09 Côte-Nord,

vi.  administrative region 10 Nord-du-Québec, or

vii.  administrative region 11 Gaspésie-Îles-de-la-Madeleine; or

(b)  one of the following regional county municipalities:

i.  Municipalité régionale de comté d’Antoine-Labelle,

i.1.  Municipalité régionale de comté de Kamouraska,

i.2.  Municipalité régionale de comté de La Matapédia,

i.3.  Municipalité régionale de comté de La Mitis,

ii.  Municipalité régionale de comté de La Vallée-de-la-Gatineau, or

ii.1.  Municipalité régionale de comté des Basques,

ii.2.  Municipalité régionale de comté de La Matanie,

iii.  Municipalité régionale de comté de Pontiac,

iv.  Municipalité régionale de comté de Rimouski-Neigette,

v.  Municipalité régionale de comté de Rivière-du-Loup, or

vi.  Municipalité régionale de comté de Témiscouata;

“salary or wages” in relation to a qualified corporation for a taxation year or a qualified partnership for a fiscal period means the aggregate of all amounts each of which is an amount (in the definitions of “manufacturing or processing salary or wages” and “metal manufacturing salary or wages” referred to as the “gross revenue” of an employee) incurred by the corporation in the taxation year or the partnership in the fiscal period, in respect of an employee of the corporation or partnership, as the case may be, and included in computing the employee’s income under Chapters I and II of Title II of Book III, except a remuneration based on profits or a bonus, where the remuneration or bonus relates, as the case may be, to an employee who is a specified shareholder of the corporation in the taxation year or a member of the partnership that is entitled, directly or indirectly, to a share of the income or of the loss of the partnership for the fiscal period of at least 10%;

“smelting” means any processing of an ore or concentrate in the course of which the charge is melted and chemically converted to produce a slag and a matte or metal containing impurities;

“specified member” of a corporation that is a cooperative, in a taxation year, means a member having, directly or indirectly, at any time in the year, at least 10% of the votes at a meeting of the members of the cooperative;

“total taxes” of a corporation for a taxation year means the aggregate of its tax payable under this Part for the year and of its tax payable under Parts IV, IV.1, VI and VI.1 for the year;

“unused portion of the tax credit” of a corporation for a taxation year means the amount by which the total amount that the corporation would be deemed to have paid to the Minister for that year under the first paragraph of sections 1029.8.36.166.43 and 1029.8.36.166.44 if no reference were made to the third paragraph of those sections, exceeds the corporation’s maximum tax credit amount for the year.

For the purposes of paragraph c of the definition of “qualified property” in the first paragraph, a property that is acquired in connection with the carrying out of a large investment project is deemed to be used in the course of carrying on a recognized business referred to in that paragraph that the corporation or partnership begins to carry on at a particular time and that relates to the large investment project, if the expenditures of a capital nature for its acquisition are incurred by the corporation or partnership in the period that begins at the beginning of the carrying out of the project and ends immediately before the particular time.

For the purposes of the definition of “eligible expenses” in the first paragraph, the following rules apply:

(a)  the expenses that are included, at the end of a taxation year or fiscal period, in the capital cost of a property do not include the expenses so included under section 180 or 182; and

(b)  the expenses incurred to acquire a property must be incurred,

i.  where the property is acquired to be used mainly in a resource region, before 1 January 2023, or

ii.  in any other case, before 1 January 2017, or after 15 August 2018 and before 1 January 2020.

For the purposes of the definition of “expenses eligible for an additional increase” in the first paragraph, are excluded eligible expenses incurred in respect of a property before 8 October 2013 or after 7 October 2013 where the property is acquired pursuant to a written obligation entered into before 8 October 2013 or where the construction of the property, by or on behalf of the purchaser, had begun by 7 October 2013, and eligible expenses incurred in respect of a property after 4 June 2014, except eligible expenses incurred after that date and before 1 July 2015 if the property is acquired on or before 4 June 2014 or, otherwise, the property is acquired pursuant to a written obligation entered into on or before that date or the construction of the property, by or on behalf of the purchaser, had begun by that date.

The qualified property referred to in the definition of “expenses eligible for a temporary additional increase” in the first paragraph is a qualified property that is acquired after 15 August 2018 and before 1 January 2020 otherwise than pursuant to an obligation in writing entered into before 16 August 2018 and that is not a property the construction of which, by or on behalf of the purchaser, had begun by 15 August 2018.

For the purposes of the definition of “exclusion threshold” in the first paragraph, where qualified property is acquired in connection with a joint venture, the exclusion threshold in respect of the qualified property for a corporation or partnership holding a share in the property as a party to such a venture is deemed to be equal to the amount obtained by multiplying $12,500 by the proportion that corresponds to the share of the corporation or partnership, as the case may be, in the property.

For the purposes of the definitions of “manufacturing or processing salary or wages” and “metal manufacturing salary or wages” in the first paragraph, an employee who spends 90% or more of working time on manufacturing or processing activities or on metal manufacturing activities, as the case may be, is deemed to spend all working time on those activities.

2009, c. 15, s. 303; 2010, c. 5, s. 159; 2010, c. 25, s. 171; 2011, c. 6, s. 190; 2011, c. 34, s. 92; 2012, c. 8, s. 229; 2013, c. 10, s. 122; I.N. 2015-05-01; 2015, c. 21, s. 459; 2015, c. 24, s. 142; I.N. 2016-07-01; 2017, c. 1, s. 291; 2017, c. 29, s. 183; 2019, c. 14, s. 360; 2020, c. 16, s. 148.

2019-06-19

1029.8.36.166.40. In this division,

“aluminum producing corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an aluminum producing business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“associated group” in a taxation year has the meaning assigned by section 1029.8.36.166.41;

“eligible expenses” of a corporation for a particular taxation year or of a partnership for a particular fiscal period, in respect of a qualified property, means

(a)  for a corporation, the amount by which the excluded expense amount relating to the qualified property in respect of the corporation for the particular year is exceeded by the aggregate of the following expenses, except expenses incurred with a person with whom the corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the corporation in the particular taxation year to acquire the qualified property that are included, at the end of that year, in the capital cost of the property and that are paid in the particular year,

ii.  the amount by which the expenses incurred by the corporation in the particular taxation year, or in a preceding taxation year for which the corporation was a qualified corporation, to acquire the qualified property that are included, at the end of the particular year or of the preceding year, as the case may be, in the capital cost of the property and that are paid after the end of the particular year or of the preceding year, as the case may be, but not later than 18 months after the end of that year, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the corporation’s eligible expenses in respect of which the corporation would be deemed to have paid an amount to the Minister under section 1029.8.36.166.43 for a taxation year preceding the particular year if that section were read without reference to its third paragraph, and

iii.  the expenses incurred by the corporation to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular taxation year, if the expenses are paid more than 18 months after the end of the corporation’s taxation year in which they were incurred and for which the corporation was a qualified corporation; and

(b)  for a partnership, the amount by which the excluded expense amount relating to the qualified property in respect of the partnership for the particular fiscal period is exceeded by the aggregate of the following expenses, except expenses incurred with a corporation that is a member of the partnership or with a person with whom such a corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the partnership in the particular fiscal period to acquire the qualified property that are included, at the end of that fiscal period, in the capital cost of the property and that are paid in that fiscal period,

ii.  the amount by which the expenses incurred by the partnership in the particular fiscal period, or in a preceding fiscal period for which the partnership was a qualified partnership, to acquire the qualified property that are included, at the end of the particular fiscal period or of the preceding fiscal period, as the case may be, in the capital cost of the property and that are paid after the end of the particular fiscal period or of the preceding fiscal period, as the case may be, but not later than 18 months after the end of that fiscal period, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the partnership’s eligible expenses in respect of which a corporation that is a member of the partnership would be deemed to have paid an amount to the Minister under section 1029.8.36.166.44 for a taxation year preceding that in which the particular fiscal period ends, if that section were read without reference to its third and sixth paragraphs and if, where the corporation was not a qualified corporation for the preceding taxation year, the corporation had been a qualified corporation for the preceding taxation year, and

iii.  the expenses incurred by the partnership to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular fiscal period, if the expenses are paid more than 18 months after the end of the partnership’s fiscal period in which they were incurred and for which the partnership was a qualified partnership;

“excluded corporation” for a taxation year means

(a)  a corporation that is exempt from tax for the year under Book VIII;

(b)  a corporation that would be exempt from tax for the year under section 985, but for section 192;

(c)  an aluminum producing corporation for the year;

(d)  an oil refining corporation for the year; or

(e)  a corporation that was carrying on a recognized business, for the purposes of Division II.6.6.6.1, before 1 April 2008 and, if the taxation year is the one in which the calendar year 2008 or 2009 ends, that has not made an election under section 1029.8.36.72.82.3.1 for the year or a preceding taxation year or, if the taxation year is the one in which the calendar year 2010 ends, that has made an election under section 1029.8.36.72.82.3.1.1 for the year, or that is associated with such a corporation in the year;

“excluded expense amount” relating to qualified property means

(a)  in respect of a corporation, for a taxation year, or a partnership, for a fiscal period, an amount equal to zero, where the qualified property is acquired before 3 December 2014 or after 2 December 2014 pursuant to an obligation in writing entered into on or before 2 December 2014, or where the construction of the qualified property, by or on behalf of the purchaser, has begun on that date;

(b)  in respect of a corporation, for a taxation year, the lesser of the following amounts, where the qualified property is not referred to in paragraph a:

i.  an amount that would be equal to the corporation’s eligible expenses in respect of that property for the taxation year, if the definition of “eligible expenses” were read without reference to “the amount by which the excluded expense amount relating to the qualified property in respect of the corporation for the particular year is exceeded by” in the portion of its paragraph a before subparagraph i, and

ii.  an amount equal to the amount by which the exclusion threshold in respect of the qualified property exceeds the aggregate of all amounts each of which is the excluded expense amount relating to the qualified property in respect of the corporation for each preceding taxation year; and

(c)  in respect of a partnership, for a fiscal period, the lesser of the following amounts, where the qualified property is not referred to in paragraph a:

i.  an amount that would be equal to the partnership’s eligible expenses in respect of that property for the fiscal period, if the definition of “eligible expenses” were read without reference to “the amount by which the excluded expense amount relating to the qualified property in respect of the partnership for the particular fiscal period is exceeded by” in the portion of its paragraph b before subparagraph i, and

ii.  an amount equal to the amount by which the exclusion threshold in respect of the qualified property exceeds the aggregate of all amounts each of which is the excluded expense amount relating to the qualified property in respect of the partnership for each preceding fiscal period;

“excluded partnership” for a fiscal period means a partnership that, at any time in the fiscal period after 13 March 2008, carries on an aluminum producing business or an oil refining business;

“exclusion threshold” in respect of qualified property means an amount equal to $12,500;

“expenses eligible for an additional increase” of a corporation for a taxation year or of a partnership for a fiscal period, in respect of a qualified property, means the portion of the eligible expenses of the corporation for the year or of the partnership for the fiscal period, in respect of the property, that are incurred

(a)  by the corporation in a taxation year for which it is a qualified manufacturing corporation; or

(b)  by the partnership in a fiscal period for which it is a qualified manufacturing partnership;

“hydrometallurgy” means any processing of an ore or concentrate that produces a metal, metallic salt or metallic compound by carrying out a chemical reaction in an aqueous or organic solution;

“large investment project” has the meaning assigned by the first paragraph of section 737.18.17.1;

“limit relating to an unused portion” in respect of a corporation for a taxation year means the aggregate of its total taxes for the year and of the amount determined for the year in its respect under the second paragraph of section 1029.8.36.166.42;

“major investment project” has the meaning assigned by the first paragraph of section 737.18.14;

“manufacturing or processing salary or wages” in relation to a qualified corporation for a taxation year or a qualified partnership for a fiscal period means the portion of the salary or wages in relation to the qualified corporation for the taxation year or the qualified partnership for the fiscal period that the aggregate of all amounts each of which is equal to the proportion of the gross revenue of an employee of the corporation or partnership, as the case may be, that the employee’s working time spent on manufacturing or processing activities, other than activities listed in section 130R12 of the Regulation respecting the Taxation Act (chapter I-3, r. 1), in the taxation year or fiscal period is of all the employee’s working time in the taxation year or fiscal period;

“maximum tax credit amount” of a corporation for a taxation year means the aggregate of the amount by which its total taxes for the year exceed the amount it is deemed to have paid to the Minister for the year under section 1029.8.36.166.46, and of the amount determined for the year in its respect under the first paragraph of section 1029.8.36.166.42;

“oil refining corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an oil refining business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“qualified corporation” for a taxation year means a corporation, other than an excluded corporation for the year, that, in the year, carries on a business in Québec and has an establishment in Québec;

“qualified manufacturing corporation” for a taxation year means a qualified corporation, for the year, in respect of which the proportion of the manufacturing or processing activities that the manufacturing or processing salary or wages in relation to the corporation for the year is of the salary or wages in relation to the corporation for the year, exceeds 50%;

“qualified manufacturing partnership” for a fiscal period means a qualified partnership, for the fiscal period, in respect of which the proportion of the manufacturing or processing activities that the manufacturing or processing salary or wages in relation to the partnership for the fiscal period is of the salary or wages in relation to the partnership for the fiscal period, exceeds 50%;

“qualified partnership” for a fiscal period means a partnership, other than an excluded partnership for the fiscal period, that, in the fiscal period, carries on a business in Québec and has an establishment in Québec;

“qualified property” of a corporation or a partnership means a property that

(a)  is acquired by the corporation or partnership,

i.  in the case of a property to which paragraph a.1 applies because of the application of subparagraph i of that paragraph, after 13 March 2008 and before either 1 January 2017 or, where the property is acquired to be used mainly in a resource region, 1 January 2023, but is not a property acquired pursuant to an obligation in writing entered into before 14 March 2008 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 13 March 2008,

i.1.  in the case of a property to which paragraph a.1 applies because of the application of subparagraph i.1 of that paragraph, after 27 January 2009 and before either 1 January 2017 or, where the property is acquired to be used mainly in a resource region, 1 January 2023, or

ii.  in the case of a property to which paragraph a.1 applies because of the application of subparagraph ii of that paragraph, after 20 March 2012 and before either 1 January 2017 or, where the property is acquired to be used mainly in a resource region, 1 January 2023, but is not a property acquired pursuant to an obligation in writing entered into before 21 March 2012 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 20 March 2012;

(a.1)  but for section 93.6, would be included

i.  in any of Classes 29, 43 and 53 of Schedule B to the Regulation respecting the Taxation Act (chapter I-3, r. 1),

i.1.  in Class 50 or 52 of Schedule B to the Regulation respecting the Taxation Act, but could be included, but for section 93.6, in Class 29 of that Schedule under subparagraph vi of subparagraph b of the first paragraph of that class if that subparagraph vi were read as if “28 January 2009” were replaced by “either 1 January 2017 or, where the property is acquired to be used mainly in a resource region, within the meaning of the first paragraph of section 1029.8.36.166.40 of the Act, 1 January 2023” and as if no reference were made to subparagraph c of that paragraph, or

ii.  in Class 43 of Schedule B to the Regulation respecting the Taxation Act if subparagraphs i and ii of paragraph b of that class were read as follows:

“i. would be included in Class 10 under subparagraph e of the second paragraph of that class, if this schedule were read without reference to this paragraph and subparagraphs a, b and e of the first paragraph of Class 41, and

“ii. at the time of its acquisition, may reasonably be expected to be used entirely in Canada and primarily for the purposes of smelting, refining or hydrometallurgy activities in respect of ore (other than ore from a gold or silver mine) extracted from a mineral resource located in Canada.”;

(b)  begins to be used within a reasonable time after being acquired;

(c)  is used solely in Québec and mainly in the course of carrying on a business, other than a recognized business in connection with which a major investment project or a large investment project, as the case may be, is carried out or is in the process of being carried out;

(c.1)  is not used in the course of operating an ethanol plant;

(c.2)  is not used in the course of operating a biodiesel fuel plant;

(c.3)  is not used in the course of operating a pyrolysis oil plant; and

(d)  was not, before its acquisition, used for any purpose or acquired to be used or leased for any purpose whatever;

“recognized business” has the meaning assigned by the first paragraph of section 737.18.14 or 737.18.17.1, as the case may be;

“refining” means any processing of a product from a smelting or concentration operation to remove impurities, which produces very high grade metal;

“resource region” means

(a)  one of the following administrative regions described in the Décret concernant la révision des limites des régions administratives du Québec (chapter D-11, r. 1):

i.  (subparagraph repealed),

ii.  administrative region 02 Saguenay-Lac-Saint-Jean,

iii.  administrative region 04 Mauricie,

iv.  administrative region 08 Abitibi-Témiscamingue,

v.  administrative region 09 Côte-Nord,

vi.  administrative region 10 Nord-du-Québec, or

vii.  administrative region 11 Gaspésie-Îles-de-la-Madeleine; or

(b)  one of the following regional county municipalities:

i.  Municipalité régionale de comté d’Antoine-Labelle,

i.1.  Municipalité régionale de comté de Kamouraska,

i.2.  Municipalité régionale de comté de La Matapédia,

i.3.  Municipalité régionale de comté de La Mitis,

ii.  Municipalité régionale de comté de La Vallée-de-la-Gatineau, or

ii.1.  Municipalité régionale de comté des Basques,

ii.2.  Municipalité régionale de comté de La Matanie,

iii.  Municipalité régionale de comté de Pontiac,

iv.  Municipalité régionale de comté de Rimouski-Neigette,

v.  Municipalité régionale de comté de Rivière-du-Loup, or

vi.  Municipalité régionale de comté de Témiscouata;

“salary or wages” in relation to a qualified corporation for a taxation year or a qualified partnership for a fiscal period means the aggregate of all amounts each of which is an amount (in the definition of “manufacturing or processing salary or wages” referred to as the “gross revenue” of an employee) incurred by the corporation in the taxation year or the partnership in the fiscal period, in respect of an employee of the corporation or partnership, as the case may be, and included in computing the employee’s income under Chapters I and II of Title II of Book III, except a remuneration based on profits or a bonus, where the remuneration or bonus relates, as the case may be, to an employee who is a specified shareholder of the corporation in the taxation year or a member of the partnership that is entitled, directly or indirectly, to a share of the income or of the loss of the partnership for the fiscal period of at least 10%;

“smelting” means any processing of an ore or concentrate in the course of which the charge is melted and chemically converted to produce a slag and a matte or metal containing impurities;

“specified member” of a corporation that is a cooperative, in a taxation year, means a member having, directly or indirectly, at any time in the year, at least 10% of the votes at a meeting of the members of the cooperative;

“total taxes” of a corporation for a taxation year means the aggregate of its tax payable under this Part for the year and of its tax payable under Parts IV, IV.1, VI and VI.1 for the year;

“unused portion of the tax credit” of a corporation for a taxation year means the amount by which the total amount that the corporation would be deemed to have paid to the Minister for that year under the first paragraph of sections 1029.8.36.166.43 and 1029.8.36.166.44 if no reference were made to the third paragraph of those sections, exceeds the corporation’s maximum tax credit amount for the year.

For the purposes of paragraph c of the definition of “qualified property” in the first paragraph, a property that is acquired in connection with the carrying out of a large investment project is deemed to be used in the course of carrying on a recognized business referred to in that paragraph that the corporation or partnership begins to carry on at a particular time and that relates to the large investment project, if the expenditures of a capital nature for its acquisition are incurred by the corporation or partnership in the period that begins at the beginning of the carrying out of the project and ends immediately before the particular time.

For the purposes of the definition of “eligible expenses” in the first paragraph, the following rules apply:

(a)  the expenses that are included, at the end of a taxation year or fiscal period, in the capital cost of a property do not include the expenses so included under section 180 or 182; and

(b)  the expenses incurred to acquire a property must be incurred before 1 January 2017 or, where the property is acquired to be used mainly in a resource region, 1 January 2023.

For the purposes of the definition of “expenses eligible for an additional increase” in the first paragraph, are excluded eligible expenses incurred in respect of a property before 8 October 2013 or after 7 October 2013 where the property is acquired pursuant to a written obligation entered into before 8 October 2013 or where the construction of the property, by or on behalf of the purchaser, had begun by 7 October 2013, and eligible expenses incurred in respect of a property after 4 June 2014, except eligible expenses incurred after that date and before 1 July 2015 if the property is acquired on or before 4 June 2014 or, otherwise, the property is acquired pursuant to a written obligation entered into on or before that date or the construction of the property, by or on behalf of the purchaser, had begun by that date.

For the purposes of the definition of “exclusion threshold” in the first paragraph, where qualified property is acquired in connection with a joint venture, the exclusion threshold in respect of the qualified property for a corporation or partnership holding a share in the property as a party to such a venture is deemed to be equal to the amount obtained by multiplying $12,500 by the proportion that corresponds to the share of the corporation or partnership, as the case may be, in the property.

For the purposes of the definitions of “aluminum producing corporation” and “oil refining corporation” in the first paragraph, the rules set out in subparagraphs b and c of the second paragraph of section 1029.8.36.166.41 apply for the purpose of determining whether a corporation is associated with a partnership or trust at any time.

For the purposes of the definition of “manufacturing or processing salary or wages” in the first paragraph, an employee who spends 90% or more of working time on manufacturing or processing activities is deemed to spend all working time on those activities.

2009, c. 15, s. 303; 2010, c. 5, s. 159; 2010, c. 25, s. 171; 2011, c. 6, s. 190; 2011, c. 34, s. 92; 2012, c. 8, s. 229; 2013, c. 10, s. 122; I.N. 2015-05-01; 2015, c. 21, s. 459; 2015, c. 24, s. 142; I.N. 2016-07-01; 2017, c. 1, s. 291; 2017, c. 29, s. 183; 2019, c. 14, s. 360.

2017-12-07

1029.8.36.166.40. In this division,

“aluminum producing corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an aluminum producing business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“associated group” in a taxation year has the meaning assigned by section 1029.8.36.166.41;

“eligible expenses” of a corporation for a particular taxation year or of a partnership for a particular fiscal period, in respect of a qualified property, means

(a)  for a corporation, the amount by which the excluded expense amount relating to the qualified property in respect of the corporation for the particular year is exceeded by the aggregate of the following expenses, except expenses incurred with a person with whom the corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the corporation in the particular taxation year to acquire the qualified property that are included, at the end of that year, in the capital cost of the property and that are paid in the particular year,

ii.  the amount by which the expenses incurred by the corporation in the particular taxation year, or in a preceding taxation year for which the corporation was a qualified corporation, to acquire the qualified property that are included, at the end of the particular year or of the preceding year, as the case may be, in the capital cost of the property and that are paid after the end of the particular year or of the preceding year, as the case may be, but not later than 18 months after the end of that year, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the corporation’s eligible expenses in respect of which the corporation would be deemed to have paid an amount to the Minister under section 1029.8.36.166.43 for a taxation year preceding the particular year if that section were read without reference to its third paragraph, and

iii.  the expenses incurred by the corporation to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular taxation year, if the expenses are paid more than 18 months after the end of the corporation’s taxation year in which they were incurred and for which the corporation was a qualified corporation; and

(b)  for a partnership, the amount by which the excluded expense amount relating to the qualified property in respect of the partnership for the particular fiscal period is exceeded by the aggregate of the following expenses, except expenses incurred with a corporation that is a member of the partnership or with a person with whom such a corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the partnership in the particular fiscal period to acquire the qualified property that are included, at the end of that fiscal period, in the capital cost of the property and that are paid in that fiscal period,

ii.  the amount by which the expenses incurred by the partnership in the particular fiscal period, or in a preceding fiscal period for which the partnership was a qualified partnership, to acquire the qualified property that are included, at the end of the particular fiscal period or of the preceding fiscal period, as the case may be, in the capital cost of the property and that are paid after the end of the particular fiscal period or of the preceding fiscal period, as the case may be, but not later than 18 months after the end of that fiscal period, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the partnership’s eligible expenses in respect of which a corporation that is a member of the partnership would be deemed to have paid an amount to the Minister under section 1029.8.36.166.44 for a taxation year preceding that in which the particular fiscal period ends, if that section were read without reference to its third and sixth paragraphs and if, where the corporation was not a qualified corporation for the preceding taxation year, the corporation had been a qualified corporation for the preceding taxation year, and

iii.  the expenses incurred by the partnership to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular fiscal period, if the expenses are paid more than 18 months after the end of the partnership’s fiscal period in which they were incurred and for which the partnership was a qualified partnership;

“excluded corporation” for a taxation year means

(a)  a corporation that is exempt from tax for the year under Book VIII, other than an insurer referred to in paragraph k of section 998 that is not so exempt from tax on all of its taxable income for the year because of section 999.0.1;

(b)  a corporation that would be exempt from tax for the year under section 985, but for section 192;

(c)  an aluminum producing corporation for the year;

(d)  an oil refining corporation for the year; or

(e)  a corporation that was carrying on a recognized business, for the purposes of Division II.6.6.6.1, before 1 April 2008 and, if the taxation year is the one in which the calendar year 2008 or 2009 ends, that has not made an election under section 1029.8.36.72.82.3.1 for the year or a preceding taxation year or, if the taxation year is the one in which the calendar year 2010 ends, that has made an election under section 1029.8.36.72.82.3.1.1 for the year, or that is associated with such a corporation in the year;

“excluded expense amount” relating to qualified property means

(a)  in respect of a corporation, for a taxation year, or a partnership, for a fiscal period, an amount equal to zero, where the qualified property is acquired before 3 December 2014 or after 2 December 2014 pursuant to an obligation in writing entered into on or before 2 December 2014, or where the construction of the qualified property, by or on behalf of the purchaser, has begun on that date;

(b)  in respect of a corporation, for a taxation year, the lesser of the following amounts, where the qualified property is not referred to in paragraph a:

i.  an amount that would be equal to the corporation’s eligible expenses in respect of that property for the taxation year, if the definition of “eligible expenses” were read without reference to “the amount by which the excluded expense amount relating to the qualified property in respect of the corporation for the particular year is exceeded by” in the portion of its paragraph a before subparagraph i, and

ii.  an amount equal to the amount by which the exclusion threshold in respect of the qualified property exceeds the aggregate of all amounts each of which is the excluded expense amount relating to the qualified property in respect of the corporation for each preceding taxation year; and

(c)  in respect of a partnership, for a fiscal period, the lesser of the following amounts, where the qualified property is not referred to in paragraph a:

i.  an amount that would be equal to the partnership’s eligible expenses in respect of that property for the fiscal period, if the definition of “eligible expenses” were read without reference to “the amount by which the excluded expense amount relating to the qualified property in respect of the partnership for the particular fiscal period is exceeded by” in the portion of its paragraph b before subparagraph i, and

ii.  an amount equal to the amount by which the exclusion threshold in respect of the qualified property exceeds the aggregate of all amounts each of which is the excluded expense amount relating to the qualified property in respect of the partnership for each preceding fiscal period;

“excluded partnership” for a fiscal period means a partnership that, at any time in the fiscal period after 13 March 2008, carries on an aluminum producing business or an oil refining business;

“exclusion threshold” in respect of qualified property means an amount equal to $12,500;

“expenses eligible for an additional increase” of a corporation for a taxation year or of a partnership for a fiscal period, in respect of a qualified property, means the portion of the eligible expenses of the corporation for the year or of the partnership for the fiscal period, in respect of the property, that are incurred

(a)  by the corporation in a taxation year for which it is a qualified manufacturing corporation; or

(b)  by the partnership in a fiscal period for which it is a qualified manufacturing partnership;

“hydrometallurgy” means any processing of an ore or concentrate that produces a metal, metallic salt or metallic compound by carrying out a chemical reaction in an aqueous or organic solution;

“large investment project” has the meaning assigned by the first paragraph of section 737.18.17.1;

“limit relating to an unused portion” in respect of a corporation for a taxation year means the aggregate of its total taxes for the year and of the amount determined for the year in its respect under the second paragraph of section 1029.8.36.166.42;

“major investment project” has the meaning assigned by the first paragraph of section 737.18.14;

“manufacturing or processing salary or wages” in relation to a qualified corporation for a taxation year or a qualified partnership for a fiscal period means the portion of the salary or wages in relation to the qualified corporation for the taxation year or the qualified partnership for the fiscal period that the aggregate of all amounts each of which is equal to the proportion of the gross revenue of an employee of the corporation or partnership, as the case may be, that the employee’s working time spent on manufacturing or processing activities, other than activities listed in section 130R12 of the Regulation respecting the Taxation Act (chapter I-3, r. 1), in the taxation year or fiscal period is of all the employee’s working time in the taxation year or fiscal period;

“maximum tax credit amount” of a corporation for a taxation year means the aggregate of the amount by which its total taxes for the year exceed the amount it is deemed to have paid to the Minister for the year under section 1029.8.36.166.46, and of the amount determined for the year in its respect under the first paragraph of section 1029.8.36.166.42;

“oil refining corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an oil refining business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“qualified corporation” for a taxation year means a corporation, other than an excluded corporation for the year, that, in the year, carries on a business in Québec and has an establishment in Québec;

“qualified manufacturing corporation” for a taxation year means a qualified corporation, for the year, in respect of which the proportion of the manufacturing or processing activities that the manufacturing or processing salary or wages in relation to the corporation for the year is of the salary or wages in relation to the corporation for the year, exceeds 50%;

“qualified manufacturing partnership” for a fiscal period means a qualified partnership, for the fiscal period, in respect of which the proportion of the manufacturing or processing activities that the manufacturing or processing salary or wages in relation to the partnership for the fiscal period is of the salary or wages in relation to the partnership for the fiscal period, exceeds 50%;

“qualified partnership” for a fiscal period means a partnership, other than an excluded partnership for the fiscal period, that, in the fiscal period, carries on a business in Québec and has an establishment in Québec;

“qualified property” of a corporation or a partnership means a property that

(a)  is acquired by the corporation or partnership,

i.  in the case of a property to which paragraph a.1 applies because of the application of subparagraph i of that paragraph, after 13 March 2008 and before either 1 January 2017 or, where the property is acquired to be used mainly in a resource region, 1 January 2023, but is not a property acquired pursuant to an obligation in writing entered into before 14 March 2008 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 13 March 2008,

i.1.  in the case of a property to which paragraph a.1 applies because of the application of subparagraph i.1 of that paragraph, after 27 January 2009 and before either 1 January 2017 or, where the property is acquired to be used mainly in a resource region, 1 January 2023, or

ii.  in the case of a property to which paragraph a.1 applies because of the application of subparagraph ii of that paragraph, after 20 March 2012 and before either 1 January 2017 or, where the property is acquired to be used mainly in a resource region, 1 January 2023, but is not a property acquired pursuant to an obligation in writing entered into before 21 March 2012 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 20 March 2012;

(a.1)  but for section 93.6, would be included

i.  in any of Classes 29, 43 and 53 of Schedule B to the Regulation respecting the Taxation Act (chapter I-3, r. 1),

i.1.  in Class 50 or 52 of Schedule B to the Regulation respecting the Taxation Act, but could be included, but for section 93.6, in Class 29 of that Schedule under subparagraph vi of subparagraph b of the first paragraph of that class if that subparagraph vi were read as if “28 January 2009” were replaced by “either 1 January 2017 or, where the property is acquired to be used mainly in a resource region, within the meaning of the first paragraph of section 1029.8.36.166.40 of the Act, 1 January 2023” and as if no reference were made to subparagraph c of that paragraph, or

ii.  in Class 43 of Schedule B to the Regulation respecting the Taxation Act if subparagraphs i and ii of paragraph b of that class were read as follows:

“i. would be included in Class 10 under subparagraph e of the second paragraph of that class, if this schedule were read without reference to this paragraph and subparagraphs a, b and e of the first paragraph of Class 41, and

“ii. at the time of its acquisition, may reasonably be expected to be used entirely in Canada and primarily for the purposes of smelting, refining or hydrometallurgy activities in respect of ore (other than ore from a gold or silver mine) extracted from a mineral resource located in Canada.”;

(b)  begins to be used within a reasonable time after being acquired;

(c)  is used solely in Québec and mainly in the course of carrying on a business, other than a recognized business in connection with which a major investment project or a large investment project, as the case may be, is carried out or is in the process of being carried out;

(c.1)  is not used in the course of operating an ethanol plant;

(c.2)  is not used in the course of operating a biodiesel fuel plant; and

(d)  was not, before its acquisition, used for any purpose or acquired to be used or leased for any purpose whatever;

“recognized business” has the meaning assigned by the first paragraph of section 737.18.14 or 737.18.17.1, as the case may be;

“refining” means any processing of a product from a smelting or concentration operation to remove impurities, which produces very high grade metal;

“resource region” means

(a)  one of the following administrative regions described in the Décret concernant la révision des limites des régions administratives du Québec (chapter D-11, r. 1):

i.  (subparagraph repealed),

ii.  administrative region 02 Saguenay-Lac-Saint-Jean,

iii.  administrative region 04 Mauricie,

iv.  administrative region 08 Abitibi-Témiscamingue,

v.  administrative region 09 Côte-Nord,

vi.  administrative region 10 Nord-du-Québec, or

vii.  administrative region 11 Gaspésie-Îles-de-la-Madeleine; or

(b)  one of the following regional county municipalities:

i.  Municipalité régionale de comté d’Antoine-Labelle,

i.1.  Municipalité régionale de comté de Kamouraska,

i.2.  Municipalité régionale de comté de La Matapédia,

i.3.  Municipalité régionale de comté de La Mitis,

ii.  Municipalité régionale de comté de La Vallée-de-la-Gatineau, or

ii.1.  Municipalité régionale de comté des Basques,

ii.2.  Municipalité régionale de comté de La Matanie,

iii.  Municipalité régionale de comté de Pontiac,

iv.  Municipalité régionale de comté de Rimouski-Neigette,

v.  Municipalité régionale de comté de Rivière-du-Loup, or

vi.  Municipalité régionale de comté de Témiscouata;

“salary or wages” in relation to a qualified corporation for a taxation year or a qualified partnership for a fiscal period means the aggregate of all amounts each of which is an amount (in the definition of “manufacturing or processing salary or wages” referred to as the “gross revenue” of an employee) incurred by the corporation in the taxation year or the partnership in the fiscal period, in respect of an employee of the corporation or partnership, as the case may be, and included in computing the employee’s income under Chapters I and II of Title II of Book III, except a remuneration based on profits or a bonus, where the remuneration or bonus relates, as the case may be, to an employee who is a specified shareholder of the corporation in the taxation year or a member of the partnership that is entitled, directly or indirectly, to a share of the income or of the loss of the partnership for the fiscal period of at least 10%;

“smelting” means any processing of an ore or concentrate in the course of which the charge is melted and chemically converted to produce a slag and a matte or metal containing impurities;

“specified member” of a corporation that is a cooperative, in a taxation year, means a member having, directly or indirectly, at any time in the year, at least 10% of the votes at a meeting of the members of the cooperative;

“total taxes” of a corporation for a taxation year means the aggregate of its tax payable under this Part for the year and of its tax payable under Parts IV, IV.1, VI and VI.1 for the year;

“unused portion of the tax credit” of a corporation for a taxation year means the amount by which the total amount that the corporation would be deemed to have paid to the Minister for that year under the first paragraph of sections 1029.8.36.166.43 and 1029.8.36.166.44 if no reference were made to the third paragraph of those sections, exceeds the corporation’s maximum tax credit amount for the year.

For the purposes of paragraph c of the definition of “qualified property” in the first paragraph, a property that is acquired in connection with the carrying out of a large investment project is deemed to be used in the course of carrying on a recognized business referred to in that paragraph that the corporation or partnership begins to carry on at a particular time and that relates to the large investment project, if the expenditures of a capital nature for its acquisition are incurred by the corporation or partnership in the period that begins at the beginning of the carrying out of the project and ends immediately before the particular time.

For the purposes of the definition of “eligible expenses” in the first paragraph, the following rules apply:

(a)  the expenses that are included, at the end of a taxation year or fiscal period, in the capital cost of a property do not include the expenses so included under section 180 or 182; and

(b)  the expenses incurred to acquire a property must be incurred before 1 January 2017 or, where the property is acquired to be used mainly in a resource region, 1 January 2023.

For the purposes of the definition of “expenses eligible for an additional increase” in the first paragraph, are excluded eligible expenses incurred in respect of a property before 8 October 2013 or after 7 October 2013 where the property is acquired pursuant to a written obligation entered into before 8 October 2013 or where the construction of the property, by or on behalf of the purchaser, had begun by 7 October 2013, and eligible expenses incurred in respect of a property after 4 June 2014, except eligible expenses incurred after that date and before 1 July 2015 if the property is acquired on or before 4 June 2014 or, otherwise, the property is acquired pursuant to a written obligation entered into on or before that date or the construction of the property, by or on behalf of the purchaser, had begun by that date.

For the purposes of the definition of “exclusion threshold” in the first paragraph, where qualified property is acquired in connection with a joint venture, the exclusion threshold in respect of the qualified property for a corporation or partnership holding a share in the property as a party to such a venture is deemed to be equal to the amount obtained by multiplying $12,500 by the proportion that corresponds to the share of the corporation or partnership, as the case may be, in the property.

For the purposes of the definitions of “aluminum producing corporation” and “oil refining corporation” in the first paragraph, the rules set out in subparagraphs b and c of the second paragraph of section 1029.8.36.166.41 apply for the purpose of determining whether a corporation is associated with a partnership or trust at any time.

For the purposes of the definition of “manufacturing or processing salary or wages” in the first paragraph, an employee who spends 90% or more of working time on manufacturing or processing activities is deemed to spend all working time on those activities.

2009, c. 15, s. 303; 2010, c. 5, s. 159; 2010, c. 25, s. 171; 2011, c. 6, s. 190; 2011, c. 34, s. 92; 2012, c. 8, s. 229; 2013, c. 10, s. 122; I.N. 2015-05-01; 2015, c. 21, s. 459; 2015, c. 24, s. 142; I.N. 2016-07-01; 2017, c. 1, s. 291; 2017, c. 29, s. 183.

2017-02-08

1029.8.36.166.40. In this division,

“aluminum producing corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an aluminum producing business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“associated group” in a taxation year has the meaning assigned by section 1029.8.36.166.41;

“eligible expenses” of a corporation for a particular taxation year or of a partnership for a particular fiscal period, in respect of a qualified property, means

(a)  for a corporation, the amount by which the excluded expense amount relating to the qualified property in respect of the corporation for the particular year is exceeded by the aggregate of the following expenses, except expenses incurred with a person with whom the corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the corporation in the particular taxation year to acquire the qualified property that are included, at the end of that year, in the capital cost of the property and that are paid in the particular year,

ii.  the amount by which the expenses incurred by the corporation in the particular taxation year, or in a preceding taxation year for which the corporation was a qualified corporation, to acquire the qualified property that are included, at the end of the particular year or of the preceding year, as the case may be, in the capital cost of the property and that are paid after the end of the particular year or of the preceding year, as the case may be, but not later than 18 months after the end of that year, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the corporation’s eligible expenses in respect of which the corporation would be deemed to have paid an amount to the Minister under section 1029.8.36.166.43 for a taxation year preceding the particular year if that section were read without reference to its third paragraph, and

iii.  the expenses incurred by the corporation to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular taxation year, if the expenses are paid more than 18 months after the end of the corporation’s taxation year in which they were incurred and for which the corporation was a qualified corporation; and

(b)  for a partnership, the amount by which the excluded expense amount relating to the qualified property in respect of the partnership for the particular fiscal period is exceeded by the aggregate of the following expenses, except expenses incurred with a corporation that is a member of the partnership or with a person with whom such a corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the partnership in the particular fiscal period to acquire the qualified property that are included, at the end of that fiscal period, in the capital cost of the property and that are paid in that fiscal period,

ii.  the amount by which the expenses incurred by the partnership in the particular fiscal period, or in a preceding fiscal period for which the partnership was a qualified partnership, to acquire the qualified property that are included, at the end of the particular fiscal period or of the preceding fiscal period, as the case may be, in the capital cost of the property and that are paid after the end of the particular fiscal period or of the preceding fiscal period, as the case may be, but not later than 18 months after the end of that fiscal period, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the partnership’s eligible expenses in respect of which a corporation that is a member of the partnership would be deemed to have paid an amount to the Minister under section 1029.8.36.166.44 for a taxation year preceding that in which the particular fiscal period ends, if that section were read without reference to its third and sixth paragraphs and if, where the corporation was not a qualified corporation for the preceding taxation year, the corporation had been a qualified corporation for the preceding taxation year, and

iii.  the expenses incurred by the partnership to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular fiscal period, if the expenses are paid more than 18 months after the end of the partnership’s fiscal period in which they were incurred and for which the partnership was a qualified partnership;

“excluded corporation” for a taxation year means

(a)  a corporation that is exempt from tax for the year under Book VIII, other than an insurer referred to in paragraph k of section 998 that is not so exempt from tax on all of its taxable income for the year because of section 999.0.1;

(b)  a corporation that would be exempt from tax for the year under section 985, but for section 192;

(c)  an aluminum producing corporation for the year;

(d)  an oil refining corporation for the year; or

(e)  a corporation that was carrying on a recognized business, for the purposes of Division II.6.6.6.1, before 1 April 2008 and, if the taxation year is the one in which the calendar year 2008 or 2009 ends, that has not made an election under section 1029.8.36.72.82.3.1 for the year or a preceding taxation year or, if the taxation year is the one in which the calendar year 2010 ends, that has made an election under section 1029.8.36.72.82.3.1.1 for the year, or that is associated with such a corporation in the year;

“excluded expense amount” relating to qualified property means

(a)  in respect of a corporation, for a taxation year, or a partnership, for a fiscal period, an amount equal to zero, where the qualified property is acquired before 3 December 2014 or after 2 December 2014 pursuant to an obligation in writing entered into on or before 2 December 2014, or where the construction of the qualified property, by or on behalf of the purchaser, has begun on that date;

(b)  in respect of a corporation, for a taxation year, the lesser of the following amounts, where the qualified property is not referred to in paragraph a:

i.  an amount that would be equal to the corporation’s eligible expenses in respect of that property for the taxation year, if the definition of “eligible expenses” were read without reference to “the amount by which the excluded expense amount relating to the qualified property in respect of the corporation for the particular year is exceeded by” in the portion of its paragraph a before subparagraph i, and

ii.  an amount equal to the amount by which the exclusion threshold in respect of the qualified property exceeds the aggregate of all amounts each of which is the excluded expense amount relating to the qualified property in respect of the corporation for each preceding taxation year; and

(c)  in respect of a partnership, for a fiscal period, the lesser of the following amounts, where the qualified property is not referred to in paragraph a:

i.  an amount that would be equal to the partnership’s eligible expenses in respect of that property for the fiscal period, if the definition of “eligible expenses” were read without reference to “the amount by which the excluded expense amount relating to the qualified property in respect of the partnership for the particular fiscal period is exceeded by” in the portion of its paragraph b before subparagraph i, and

ii.  an amount equal to the amount by which the exclusion threshold in respect of the qualified property exceeds the aggregate of all amounts each of which is the excluded expense amount relating to the qualified property in respect of the partnership for each preceding fiscal period;

“excluded partnership” for a fiscal period means a partnership that, at any time in the fiscal period after 13 March 2008, carries on an aluminum producing business or an oil refining business;

“exclusion threshold” in respect of qualified property means an amount equal to $12,500;

“expenses eligible for an additional increase” of a corporation for a taxation year or of a partnership for a fiscal period, in respect of a qualified property, means the portion of the eligible expenses of the corporation for the year or of the partnership for the fiscal period, in respect of the property, that are incurred

(a)  by the corporation in a taxation year for which it is a qualified manufacturing corporation; or

(b)  by the partnership in a fiscal period for which it is a qualified manufacturing partnership;

“hydrometallurgy” means any processing of an ore or concentrate that produces a metal, metallic salt or metallic compound by carrying out a chemical reaction in an aqueous or organic solution;

“large investment project” has the meaning assigned by the first paragraph of section 737.18.17.1;

“limit relating to an unused portion” in respect of a corporation for a taxation year means the aggregate of its total taxes for the year and of the amount determined for the year in its respect under the second paragraph of section 1029.8.36.166.42;

“major investment project” has the meaning assigned by the first paragraph of section 737.18.14;

“manufacturing or processing salary or wages” in relation to a qualified corporation for a taxation year or a qualified partnership for a fiscal period means the portion of the salary or wages in relation to the qualified corporation for the taxation year or the qualified partnership for the fiscal period that the aggregate of all amounts each of which is equal to the proportion of the gross revenue of an employee of the corporation or partnership, as the case may be, that the employee’s working time spent on manufacturing or processing activities, other than activities listed in section 130R12 of the Regulation respecting the Taxation Act (chapter I-3, r. 1), in the taxation year or fiscal period is of all the employee’s working time in the taxation year or fiscal period;

“maximum tax credit amount” of a corporation for a taxation year means the aggregate of the amount by which its total taxes for the year exceed the amount it is deemed to have paid to the Minister for the year under section 1029.8.36.166.46, and of the amount determined for the year in its respect under the first paragraph of section 1029.8.36.166.42;

“oil refining corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an oil refining business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“qualified corporation” for a taxation year means a corporation, other than an excluded corporation for the year, that, in the year, carries on a business in Québec and has an establishment in Québec;

“qualified manufacturing corporation” for a taxation year means a qualified corporation, for the year, in respect of which the proportion of the manufacturing or processing activities that the manufacturing or processing salary or wages in relation to the corporation for the year is of the salary or wages in relation to the corporation for the year, exceeds 50%;

“qualified manufacturing partnership” for a fiscal period means a qualified partnership, for the fiscal period, in respect of which the proportion of the manufacturing or processing activities that the manufacturing or processing salary or wages in relation to the partnership for the fiscal period is of the salary or wages in relation to the partnership for the fiscal period, exceeds 50%;

“qualified partnership” for a fiscal period means a partnership, other than an excluded partnership for the fiscal period, that, in the fiscal period, carries on a business in Québec and has an establishment in Québec;

“qualified property” of a corporation or a partnership means a property that

(a)  is acquired by the corporation or partnership,

i.  in the case of a property to which paragraph a.1 applies because of the application of subparagraph i of that paragraph, after 13 March 2008 and before either 1 January 2017 or, where the property is acquired to be used mainly in a resource region, 1 January 2023, but is not a property acquired pursuant to an obligation in writing entered into before 14 March 2008 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 13 March 2008,

i.1.  in the case of a property to which paragraph a.1 applies because of the application of subparagraph i.1 of that paragraph, after 27 January 2009 and before either 1 January 2017 or, where the property is acquired to be used mainly in a resource region, 1 January 2023, or

ii.  in the case of a property to which paragraph a.1 applies because of the application of subparagraph ii of that paragraph, after 20 March 2012 and before either 1 January 2017 or, where the property is acquired to be used mainly in a resource region, 1 January 2023, but is not a property acquired pursuant to an obligation in writing entered into before 21 March 2012 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 20 March 2012;

(a.1)  but for section 93.6, would be included

i.  in Class 29 or 43 of Schedule B to the Regulation respecting the Taxation Act (chapter I-3, r. 1), or

i.1.  in Class 50 or 52 of Schedule B to the Regulation respecting the Taxation Act, but could be included, but for section 93.6, in Class 29 of that Schedule under subparagraph vi of subparagraph b of the first paragraph of that class if that subparagraph vi were read as if “28 January 2009” were replaced by “either 1 January 2017 or, where the property is acquired to be used mainly in a resource region, within the meaning of the first paragraph of section 1029.8.36.166.40 of the Act, 1 January 2023” and as if no reference were made to subparagraph c of that paragraph, or

ii.  in Class 43 of Schedule B to the Regulation respecting the Taxation Act if subparagraphs i and ii of paragraph b of that class were read as follows:

“i. would be included in Class 10 under subparagraph e of the second paragraph of that class, if this schedule were read without reference to this paragraph and subparagraphs a, b and e of the first paragraph of Class 41, and

“ii. at the time of its acquisition, may reasonably be expected to be used entirely in Canada and primarily for the purposes of smelting, refining or hydrometallurgy activities in respect of ore (other than ore from a gold or silver mine) extracted from a mineral resource located in Canada.”;

(b)  begins to be used within a reasonable time after being acquired;

(c)  is used solely in Québec and mainly in the course of carrying on a business, other than a recognized business in connection with which a major investment project or a large investment project, as the case may be, is carried out or is in the process of being carried out;

(c.1)  is not used in the course of operating an ethanol plant; and

(d)  was not, before its acquisition, used for any purpose or acquired to be used or leased for any purpose whatever;

“recognized business” has the meaning assigned by the first paragraph of section 737.18.14 or 737.18.17.1, as the case may be;

“refining” means any processing of a product from a smelting or concentration operation to remove impurities, which produces very high grade metal;

“resource region” means

(a)  one of the following administrative regions described in the Décret concernant la révision des limites des régions administratives du Québec (chapter D-11, r. 1):

i.  (subparagraph repealed),

ii.  administrative region 02 Saguenay-Lac-Saint-Jean,

iii.  administrative region 04 Mauricie,

iv.  administrative region 08 Abitibi-Témiscamingue,

v.  administrative region 09 Côte-Nord,

vi.  administrative region 10 Nord-du-Québec, or

vii.  administrative region 11 Gaspésie-Îles-de-la-Madeleine; or

(b)  one of the following regional county municipalities:

i.  Municipalité régionale de comté d’Antoine-Labelle,

i.1.  Municipalité régionale de comté de Kamouraska,

i.2.  Municipalité régionale de comté de La Matapédia,

i.3.  Municipalité régionale de comté de La Mitis,

ii.  Municipalité régionale de comté de La Vallée-de-la-Gatineau, or

ii.1.  Municipalité régionale de comté des Basques,

ii.2.  Municipalité régionale de comté de La Matanie,

iii.  Municipalité régionale de comté de Pontiac,

iv.  Municipalité régionale de comté de Rimouski-Neigette,

v.  Municipalité régionale de comté de Rivière-du-Loup, or

vi.  Municipalité régionale de comté de Témiscouata;

“salary or wages” in relation to a qualified corporation for a taxation year or a qualified partnership for a fiscal period means the aggregate of all amounts each of which is an amount (in the definition of “manufacturing or processing salary or wages” referred to as the “gross revenue” of an employee) incurred by the corporation in the taxation year or the partnership in the fiscal period, in respect of an employee of the corporation or partnership, as the case may be, and included in computing the employee’s income under Chapters I and II of Title II of Book III, except a remuneration based on profits or a bonus, where the remuneration or bonus relates, as the case may be, to an employee who is a specified shareholder of the corporation in the taxation year or a member of the partnership that is entitled, directly or indirectly, to a share of the income or of the loss of the partnership for the fiscal period of at least 10%;

“smelting” means any processing of an ore or concentrate in the course of which the charge is melted and chemically converted to produce a slag and a matte or metal containing impurities;

“specified member” of a corporation that is a cooperative, in a taxation year, means a member having, directly or indirectly, at any time in the year, at least 10% of the votes at a meeting of the members of the cooperative;

“total taxes” of a corporation for a taxation year means the aggregate of its tax payable under this Part for the year and of its tax payable under Parts IV, IV.1, VI and VI.1 for the year;

“unused portion of the tax credit” of a corporation for a taxation year means the amount by which the total amount that the corporation would be deemed to have paid to the Minister for that year under the first paragraph of sections 1029.8.36.166.43 and 1029.8.36.166.44 if no reference were made to the third paragraph of those sections, exceeds the corporation’s maximum tax credit amount for the year.

For the purposes of paragraph c of the definition of “qualified property” in the first paragraph, a property that is acquired in connection with the carrying out of a large investment project is deemed to be used in the course of carrying on a recognized business referred to in that paragraph that the corporation or partnership begins to carry on at a particular time and that relates to the large investment project, if the expenditures of a capital nature for its acquisition are incurred by the corporation or partnership in the period that begins at the beginning of the carrying out of the project and ends immediately before the particular time.

For the purposes of the definition of “eligible expenses” in the first paragraph, the following rules apply:

(a)  the expenses that are included, at the end of a taxation year or fiscal period, in the capital cost of a property do not include the expenses so included under section 180 or 182; and

(b)  the expenses incurred to acquire a property must be incurred before 1 January 2017 or, where the property is acquired to be used mainly in a resource region, 1 January 2023.

For the purposes of the definition of “expenses eligible for an additional increase” in the first paragraph, are excluded eligible expenses incurred in respect of a property before 8 October 2013 or after 7 October 2013 where the property is acquired pursuant to a written obligation entered into before 8 October 2013 or where the construction of the property, by or on behalf of the purchaser, had begun by 7 October 2013, and eligible expenses incurred in respect of a property after 4 June 2014, except eligible expenses incurred after that date and before 1 July 2015 if the property is acquired on or before 4 June 2014 or, otherwise, the property is acquired pursuant to a written obligation entered into on or before that date or the construction of the property, by or on behalf of the purchaser, had begun by that date.

For the purposes of the definition of “exclusion threshold” in the first paragraph, where qualified property is acquired in connection with a joint venture, the exclusion threshold in respect of the qualified property for a corporation or partnership holding a share in the property as a party to such a venture is deemed to be equal to the amount obtained by multiplying $12,500 by the proportion that corresponds to the share of the corporation or partnership, as the case may be, in the property.

For the purposes of the definitions of “aluminum producing corporation” and “oil refining corporation” in the first paragraph, the rules set out in subparagraphs b and c of the second paragraph of section 1029.8.36.166.41 apply for the purpose of determining whether a corporation is associated with a partnership or trust at any time.

For the purposes of the definition of “manufacturing or processing salary or wages” in the first paragraph, an employee who spends 90% or more of working time on manufacturing or processing activities is deemed to spend all working time on those activities.

2009, c. 15, s. 303; 2010, c. 5, s. 159; 2010, c. 25, s. 171; 2011, c. 6, s. 190; 2011, c. 34, s. 92; 2012, c. 8, s. 229; 2013, c. 10, s. 122; I.N. 2015-05-01; 2015, c. 21, s. 459; 2015, c. 24, s. 142; I.N. 2016-07-01; 2017, c. 1, s. 291.

2015-10-26

1029.8.36.166.40. In this division,

“aluminum producing corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an aluminum producing business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“associated group” in a taxation year has the meaning assigned by section 1029.8.36.166.41;

“eligible expenses” of a corporation for a particular taxation year or of a partnership for a particular fiscal period, in respect of a qualified property, means

(a)  for a corporation, the amount by which the excluded expense amount relating to the qualified property in respect of the corporation for the particular year is exceeded by the aggregate of the following expenses, except expenses incurred with a person with whom the corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the corporation in the particular taxation year to acquire the qualified property that are included, at the end of that year, in the capital cost of the property and that are paid in the particular year,

ii.  the amount by which the expenses incurred by the corporation in the particular taxation year, or in a preceding taxation year for which the corporation was a qualified corporation, to acquire the qualified property that are included, at the end of the particular year or of the preceding year, as the case may be, in the capital cost of the property and that are paid after the end of the particular year or of the preceding year, as the case may be, but not later than 18 months after the end of that year, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the corporation’s eligible expenses in respect of which the corporation would be deemed to have paid an amount to the Minister under section 1029.8.36.166.43 for a taxation year preceding the particular year if that section were read without reference to its third paragraph, and

iii.  the expenses incurred by the corporation to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular taxation year, if the expenses are paid more than 18 months after the end of the corporation’s taxation year in which they were incurred and for which the corporation was a qualified corporation; and

(b)  for a partnership, the amount by which the excluded expense amount relating to the qualified property in respect of the partnership for the particular fiscal period is exceeded by the aggregate of the following expenses, except expenses incurred with a corporation that is a member of the partnership or with a person with whom such a corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the partnership in the particular fiscal period to acquire the qualified property that are included, at the end of that fiscal period, in the capital cost of the property and that are paid in that fiscal period,

ii.  the amount by which the expenses incurred by the partnership in the particular fiscal period, or in a preceding fiscal period for which the partnership was a qualified partnership, to acquire the qualified property that are included, at the end of the particular fiscal period or of the preceding fiscal period, as the case may be, in the capital cost of the property and that are paid after the end of the particular fiscal period or of the preceding fiscal period, as the case may be, but not later than 18 months after the end of that fiscal period, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the partnership’s eligible expenses in respect of which a corporation that is a member of the partnership would be deemed to have paid an amount to the Minister under section 1029.8.36.166.44 for a taxation year preceding that in which the particular fiscal period ends, if that section were read without reference to its third and sixth paragraphs and if, where the corporation was not a qualified corporation for the preceding taxation year, the corporation had been a qualified corporation for the preceding taxation year, and

iii.  the expenses incurred by the partnership to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular fiscal period, if the expenses are paid more than 18 months after the end of the partnership’s fiscal period in which they were incurred and for which the partnership was a qualified partnership;

“excluded corporation” for a taxation year means

(a)  a corporation that is exempt from tax for the year under Book VIII, other than an insurer referred to in paragraph k of section 998 that is not so exempt from tax on all of its taxable income for the year because of section 999.0.1;

(b)  a corporation that would be exempt from tax for the year under section 985, but for section 192;

(c)  an aluminum producing corporation for the year;

(d)  an oil refining corporation for the year; or

(e)  a corporation that was carrying on a recognized business, for the purposes of Division II.6.6.6.1, before 1 April 2008 and, if the taxation year is the one in which the calendar year 2008 or 2009 ends, that has not made an election under section 1029.8.36.72.82.3.1 for the year or a preceding taxation year or, if the taxation year is the one in which the calendar year 2010 ends, that has made an election under section 1029.8.36.72.82.3.1.1 for the year, or that is associated with such a corporation in the year;

“excluded expense amount” relating to qualified property means

(a)  in respect of a corporation, for a taxation year, or a partnership, for a fiscal period, an amount equal to zero, where the qualified property is acquired before 3 December 2014 or after 2 December 2014 pursuant to an obligation in writing entered into on or before 2 December 2014, or where the construction of the qualified property, by or on behalf of the purchaser, has begun on that date;

(b)  in respect of a corporation, for a taxation year, the lesser of the following amounts, where the qualified property is not referred to in paragraph a:

i.  an amount that would be equal to the corporation’s eligible expenses in respect of that property for the taxation year, if the definition of “eligible expenses” were read without reference to “the amount by which the excluded expense amount relating to the qualified property in respect of the corporation for the particular year is exceeded by” in the portion of its paragraph a before subparagraph i, and

ii.  an amount equal to the amount by which the exclusion threshold in respect of the qualified property exceeds the aggregate of all amounts each of which is the excluded expense amount relating to the qualified property in respect of the corporation for each preceding taxation year; and

(c)  in respect of a partnership, for a fiscal period, the lesser of the following amounts, where the qualified property is not referred to in paragraph a:

i.  an amount that would be equal to the partnership’s eligible expenses in respect of that property for the fiscal period, if the definition of “eligible expenses” were read without reference to “the amount by which the excluded expense amount relating to the qualified property in respect of the partnership for the particular fiscal period is exceeded by” in the portion of its paragraph b before subparagraph i, and

ii.  an amount equal to the amount by which the exclusion threshold in respect of the qualified property exceeds the aggregate of all amounts each of which is the excluded expense amount relating to the qualified property in respect of the partnership for each preceding fiscal period;

“excluded partnership” for a fiscal period means a partnership that, at any time in the fiscal period after 13 March 2008, carries on an aluminum producing business or an oil refining business;

“exclusion threshold” in respect of qualified property means an amount equal to $12,500;

“expenses eligible for an additional increase” of a corporation for a taxation year or of a partnership for a fiscal period, in respect of a qualified property, means the portion of the eligible expenses of the corporation for the year or of the partnership for the fiscal period, in respect of the property, that are incurred

(a)  by the corporation in a taxation year for which it is a qualified manufacturing corporation; or

(b)  by the partnership in a fiscal period for which it is a qualified manufacturing partnership;

“hydrometallurgy” means any processing of an ore or concentrate that produces a metal, metallic salt or metallic compound by carrying out a chemical reaction in an aqueous or organic solution;

“large investment project” the meaning assigned by the first paragraph of section 737.18.17.1;

“limit relating to an unused portion” in respect of a corporation for a taxation year means the aggregate of its total taxes for the year and of the amount determined for the year in its respect under the second paragraph of section 1029.8.36.166.42;

“major investment project” has the meaning assigned by the first paragraph of section 737.18.14;

“manufacturing or processing salary or wages” in relation to a qualified corporation for a taxation year or a qualified partnership for a fiscal period means the portion of the salary or wages in relation to the qualified corporation for the taxation year or the qualified partnership for the fiscal period that the aggregate of all amounts each of which is equal to the proportion of the gross revenue of an employee of the corporation or partnership, as the case may be, that the employee’s working time spent on manufacturing or processing activities, other than activities listed in section 130R12 of the Regulation respecting the Taxation Act (chapter I-3, r. 1), in the taxation year or fiscal period is of all the employee’s working time in the taxation year or fiscal period;

“maximum tax credit amount” of a corporation for a taxation year means the aggregate of the amount by which its total taxes for the year exceed the amount it is deemed to have paid to the Minister for the year under section 1029.8.36.166.46, and of the amount determined for the year in its respect under the first paragraph of section 1029.8.36.166.42;

“oil refining corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an oil refining business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“qualified corporation” for a taxation year means a corporation, other than an excluded corporation for the year, that, in the year, carries on a business in Québec and has an establishment in Québec;

“qualified manufacturing corporation” for a taxation year means a qualified corporation, for the year, in respect of which the proportion of the manufacturing or processing activities that the manufacturing or processing salary or wages in relation to the corporation for the year is of the salary or wages in relation to the corporation for the year, exceeds 50%;

“qualified manufacturing partnership” for a fiscal period means a qualified partnership, for the fiscal period, in respect of which the proportion of the manufacturing or processing activities that the manufacturing or processing salary or wages in relation to the partnership for the fiscal period is of the salary or wages in relation to the partnership for the fiscal period, exceeds 50%;

“qualified partnership” for a fiscal period means a partnership, other than an excluded partnership for the fiscal period, that, in the fiscal period, carries on a business in Québec and has an establishment in Québec;

“qualified property” of a corporation or a partnership means a property that

(a)  is acquired by the corporation or partnership,

i.  in the case of a property to which paragraph a.1 applies because of the application of subparagraph i of that paragraph, after 13 March 2008 and before 1 January 2018, but is not a property acquired pursuant to an obligation in writing entered into before 14 March 2008 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 13 March 2008,

i.1.  in the case of a property to which paragraph a.1 applies because of the application of subparagraph i.1 of that paragraph, after 27 January 2009 and before 1 January 2018, or

ii.  in the case of a property to which paragraph a.1 applies because of the application of subparagraph ii of that paragraph, after 20 March 2012 and before 1 January 2018, but is not a property acquired pursuant to an obligation in writing entered into before 21 March 2012 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 20 March 2012;

(a.1)  but for section 93.6, would be included

i.  in Class 29 or 43 of Schedule B to the Regulation respecting the Taxation Act (chapter I-3, r. 1), or

i.1.  in Class 50 or 52 of Schedule B to the Regulation respecting the Taxation Act, but could be included, but for section 93.6, in Class 29 of that Schedule under subparagraph vi of subparagraph b of the first paragraph of that class if that subparagraph vi were read as if “28 January 2009” were replaced by “1 January 2018” and as if no reference were made to subparagraph c of that paragraph, or

ii.  in Class 43 of Schedule B to the Regulation respecting the Taxation Act if subparagraphs i and ii of paragraph b of that class were read as follows:

“i. would be included in Class 10 under subparagraph e of the second paragraph of that class, if this schedule were read without reference to this paragraph and subparagraphs a, b and e of the first paragraph of Class 41, and

“ii. at the time of its acquisition, may reasonably be expected to be used entirely in Canada and primarily for the purposes of smelting, refining or hydrometallurgy activities in respect of ore (other than ore from a gold or silver mine) extracted from a mineral resource located in Canada.”;

(b)  begins to be used within a reasonable time after being acquired;

(c)  is used solely in Québec and mainly in the course of carrying on a business, other than a recognized business in connection with which a major investment project or a large investment project, as the case may be, is carried out or is in the process of being carried out;

(c.1)  is not used in the course of operating an ethanol plant; and

(d)  was not, before its acquisition, used for any purpose or acquired to be used or leased for any purpose whatever;

“recognized business” has the meaning assigned by the first paragraph of section 737.18.14 or 737.18.17.1, as the case may be;

“refining” means any processing of a product from a smelting or concentration operation to remove impurities, which produces very high grade metal;

“resource region” means

(a)  one of the following administrative regions described in the Décret concernant la révision des limites des régions administratives du Québec (chapter D-11, r. 1):

i.  (subparagraph repealed),

ii.  administrative region 02 Saguenay-Lac-Saint-Jean,

iii.  administrative region 04 Mauricie,

iv.  administrative region 08 Abitibi-Témiscamingue,

v.  administrative region 09 Côte-Nord,

vi.  administrative region 10 Nord-du-Québec, or

vii.  administrative region 11 Gaspésie-Îles-de-la-Madeleine; or

(b)  one of the following regional county municipalities:

i.  Municipalité régionale de comté d’Antoine-Labelle,

i.1.  Municipalité régionale de comté de Kamouraska,

i.2.  Municipalité régionale de comté de La Matapédia,

i.3.  Municipalité régionale de comté de La Mitis,

ii.  Municipalité régionale de comté de La Vallée-de-la-Gatineau, or

ii.1.  Municipalité régionale de comté des Basques,

ii.2.  Municipalité régionale de comté de La Matanie,

iii.  Municipalité régionale de comté de Pontiac,

iv.  Municipalité régionale de comté de Rimouski-Neigette,

v.  Municipalité régionale de comté de Rivière-du-Loup, or

vi.  Municipalité régionale de comté de Témiscouata;

“salary or wages” in relation to a qualified corporation for a taxation year or a qualified partnership for a fiscal period means the aggregate of all amounts each of which is an amount (in the definition of “manufacturing or processing salary or wages” referred to as the “gross revenue” of an employee) incurred by the corporation in the taxation year or the partnership in the fiscal period, in respect of an employee of the corporation or partnership, as the case may be, and included in computing the employee’s income under Chapters I and II of Title II of Book III, except a remuneration based on profits or a bonus, where the remuneration or bonus relates, as the case may be, to an employee who is a specified shareholder of the corporation in the taxation year or a member of the partnership that is entitled, directly or indirectly, to a share of the income or of the loss of the partnership for the fiscal period of at least 10%;

“smelting” means any processing of an ore or concentrate in the course of which the charge is melted and chemically converted to produce a slag and a matte or metal containing impurities;

“specified member” of a corporation that is a cooperative, in a taxation year, means a member having, directly or indirectly, at any time in the year, at least 10% of the votes at a meeting of the members of the cooperative;

“total taxes” of a corporation for a taxation year means the aggregate of its tax payable under this Part for the year and of its tax payable under Parts IV, IV.1, VI and VI.1 for the year;

“unused portion of the tax credit” of a corporation for a taxation year means the amount by which the total amount that the corporation would be deemed to have paid to the Minister for that year under the first paragraph of sections 1029.8.36.166.43 and 1029.8.36.166.44 if no reference were made to the third paragraph of those sections, exceeds the corporation’s maximum tax credit amount for the year.

For the purposes of paragraph c of the definition of “qualified property” in the first paragraph, a property that is acquired in connection with the carrying out of a large investment project is deemed to be used in the course of carrying on a recognized business referred to in that paragraph that the corporation or partnership begins to carry on at a particular time and that relates to the large investment project, if the expenditures of a capital nature for its acquisition are incurred by the corporation or partnership in the period that begins at the beginning of the carrying out of the project and ends immediately before the particular time.

For the purposes of the definition of “eligible expenses” in the first paragraph, the expenses that are included, at the end of a taxation year or fiscal period, in the capital cost of a property do not include the expenses so included under section 180 or 182.

For the purposes of the definition of “expenses eligible for an additional increase” in the first paragraph, are excluded eligible expenses incurred in respect of a property before 8 October 2013 or after 7 October 2013 where the property is acquired pursuant to a written obligation entered into before 8 October 2013 or where the construction of the property, by or on behalf of the purchaser, had begun by 7 October 2013, and eligible expenses incurred in respect of a property after 4 June 2014, except eligible expenses incurred after that date and before 1 July 2015 if the property is acquired on or before 4 June 2014 or, otherwise, the property is acquired pursuant to a written obligation entered into on or before that date or the construction of the property, by or on behalf of the purchaser, had begun by that date.

For the purposes of the definition of “exclusion threshold” in the first paragraph, where qualified property is acquired in connection with a joint venture, the exclusion threshold in respect of the qualified property for a corporation or partnership holding a share in the property as a party to such a venture is deemed to be equal to the amount obtained by multiplying $12,500 by the proportion that corresponds to the share of the corporation or partnership, as the case may be, in the property.

For the purposes of the definitions of “aluminum producing corporation” and “oil refining corporation” in the first paragraph, the rules set out in subparagraphs b and c of the second paragraph of section 1029.8.36.166.41 apply for the purpose of determining whether a corporation is associated with a partnership or trust at any time.

For the purposes of the definition of “manufacturing or processing salary or wages” in the first paragraph, an employee who spends 90% or more of working time on manufacturing or processing activities is deemed to spend all working time on those activities.

2009, c. 15, s. 303; 2010, c. 5, s. 159; 2010, c. 25, s. 171; 2011, c. 6, s. 190; 2011, c. 34, s. 92; 2012, c. 8, s. 229; 2013, c. 10, s. 122; I.N. 2015-05-01; 2015, c. 21, s. 459; 2015, c. 24, s. 142; I.N. 2016-07-01.

2015-10-21

1029.8.36.166.40. In this division,

“aluminum producing corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an aluminum producing business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“associated group” in a taxation year has the meaning assigned by section 1029.8.36.166.41;

“eligible expenses” of a corporation for a particular taxation year or of a partnership for a particular fiscal period, in respect of a qualified property, means

(a)  for a corporation, the aggregate of the following expenses, except expenses incurred with a person with whom the corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the corporation in the particular taxation year to acquire the qualified property that are included, at the end of that year, in the capital cost of the property and that are paid in the particular year,

ii.  the amount by which the expenses incurred by the corporation in the particular taxation year, or in a preceding taxation year for which the corporation was a qualified corporation, to acquire the qualified property that are included, at the end of the particular year or of the preceding year, as the case may be, in the capital cost of the property and that are paid after the end of the particular year or of the preceding year, as the case may be, but not later than 18 months after the end of that year, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the corporation’s eligible expenses in respect of which the corporation would be deemed to have paid an amount to the Minister under section 1029.8.36.166.43 for a taxation year preceding the particular year if that section were read without reference to its third paragraph, and

iii.  the expenses incurred by the corporation to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular taxation year, if the expenses are paid more than 18 months after the end of the corporation’s taxation year in which they were incurred and for which the corporation was a qualified corporation; and

(b)  for a partnership, the aggregate of the following expenses, except expenses incurred with a corporation that is a member of the partnership or with a person with whom such a corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the partnership in the particular fiscal period to acquire the qualified property that are included, at the end of that fiscal period, in the capital cost of the property and that are paid in that fiscal period,

ii.  the amount by which the expenses incurred by the partnership in the particular fiscal period, or in a preceding fiscal period for which the partnership was a qualified partnership, to acquire the qualified property that are included, at the end of the particular fiscal period or of the preceding fiscal period, as the case may be, in the capital cost of the property and that are paid after the end of the particular fiscal period or of the preceding fiscal period, as the case may be, but not later than 18 months after the end of that fiscal period, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the partnership’s eligible expenses in respect of which a corporation that is a member of the partnership would be deemed to have paid an amount to the Minister under section 1029.8.36.166.44 for a taxation year preceding that in which the particular fiscal period ends, if that section were read without reference to its third and sixth paragraphs and if, where the corporation was not a qualified corporation for the preceding taxation year, the corporation had been a qualified corporation for the preceding taxation year, and

iii.  the expenses incurred by the partnership to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular fiscal period, if the expenses are paid more than 18 months after the end of the partnership’s fiscal period in which they were incurred and for which the partnership was a qualified partnership;

“excluded corporation” for a taxation year means

(a)  a corporation that is exempt from tax for the year under Book VIII, other than an insurer referred to in paragraph k of section 998 that is not so exempt from tax on all of its taxable income for the year because of section 999.0.1;

(b)  a corporation that would be exempt from tax for the year under section 985, but for section 192;

(c)  an aluminum producing corporation for the year;

(d)  an oil refining corporation for the year; or

(e)  a corporation that was carrying on a recognized business, for the purposes of Division II.6.6.6.1, before 1 April 2008 and, if the taxation year is the one in which the calendar year 2008 or 2009 ends, that has not made an election under section 1029.8.36.72.82.3.1 for the year or a preceding taxation year or, if the taxation year is the one in which the calendar year 2010 ends, that has made an election under section 1029.8.36.72.82.3.1.1 for the year, or that is associated with such a corporation in the year;

“excluded partnership” for a fiscal period means a partnership that, at any time in the fiscal period after 13 March 2008, carries on an aluminum producing business or an oil refining business;

“expenses eligible for an additional increase” of a corporation for a taxation year or of a partnership for a fiscal period, in respect of a qualified property, means the portion of the eligible expenses of the corporation for the year or of the partnership for the fiscal period, in respect of the property, that are incurred

(a)  by the corporation in a taxation year for which it is a qualified manufacturing corporation; or

(b)  by the partnership in a fiscal period for which it is a qualified manufacturing partnership;

“hydrometallurgy” means any processing of an ore or concentrate that produces a metal, metallic salt or metallic compound by carrying out a chemical reaction in an aqueous or organic solution;

“large investment project” the meaning assigned by the first paragraph of section 737.18.17.1;

“limit relating to an unused portion” in respect of a corporation for a taxation year means the aggregate of its total taxes for the year and of the amount determined for the year in its respect under the second paragraph of section 1029.8.36.166.42;

“major investment project” has the meaning assigned by the first paragraph of section 737.18.14;

“manufacturing or processing salary or wages” in relation to a qualified corporation for a taxation year or a qualified partnership for a fiscal period means the portion of the salary or wages in relation to the qualified corporation for the taxation year or the qualified partnership for the fiscal period that the aggregate of all amounts each of which is equal to the proportion of the gross revenue of an employee of the corporation or partnership, as the case may be, that the employee’s working time spent on manufacturing or processing activities, other than activities listed in section 130R12 of the Regulation respecting the Taxation Act (chapter I-3, r. 1), in the taxation year or fiscal period is of all the employee’s working time in the taxation year or fiscal period;

“maximum tax credit amount” of a corporation for a taxation year means the aggregate of the amount by which its total taxes for the year exceed the amount it is deemed to have paid to the Minister for the year under section 1029.8.36.166.46, and of the amount determined for the year in its respect under the first paragraph of section 1029.8.36.166.42;

“oil refining corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an oil refining business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“qualified corporation” for a taxation year means a corporation, other than an excluded corporation for the year, that, in the year, carries on a business in Québec and has an establishment in Québec;

“qualified manufacturing corporation” for a taxation year means a qualified corporation, for the year, in respect of which the proportion of the manufacturing or processing activities that the manufacturing or processing salary or wages in relation to the corporation for the year is of the salary or wages in relation to the corporation for the year, exceeds 50%;

“qualified manufacturing partnership” for a fiscal period means a qualified partnership, for the fiscal period, in respect of which the proportion of the manufacturing or processing activities that the manufacturing or processing salary or wages in relation to the partnership for the fiscal period is of the salary or wages in relation to the partnership for the fiscal period, exceeds 50%;

“qualified partnership” for a fiscal period means a partnership, other than an excluded partnership for the fiscal period, that, in the fiscal period, carries on a business in Québec and has an establishment in Québec;

“qualified property” of a corporation or a partnership means a property that

(a)  is acquired by the corporation or partnership,

i.  in the case of a property to which paragraph a.1 applies because of the application of subparagraph i of that paragraph, after 13 March 2008 and before 1 January 2018, but is not a property acquired pursuant to an obligation in writing entered into before 14 March 2008 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 13 March 2008,

i.1.  in the case of a property to which paragraph a.1 applies because of the application of subparagraph i.1 of that paragraph, after 27 January 2009 and before 1 January 2018, or

ii.  in the case of a property to which paragraph a.1 applies because of the application of subparagraph ii of that paragraph, after 20 March 2012 and before 1 January 2018, but is not a property acquired pursuant to an obligation in writing entered into before 21 March 2012 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 20 March 2012;

(a.1)  but for section 93.6, would be included

i.  in Class 29 or 43 of Schedule B to the Regulation respecting the Taxation Act (chapter I-3, r. 1), or

i.1.  in Class 50 or 52 of Schedule B to the Regulation respecting the Taxation Act, but could be included, but for section 93.6, in Class 29 of that Schedule under subparagraph vi of subparagraph b of the first paragraph of that class if that subparagraph vi were read as if “28 January 2009” were replaced by “1 January 2018” and as if no reference were made to subparagraph c of that paragraph, or

ii.  in Class 43 of Schedule B to the Regulation respecting the Taxation Act if subparagraphs i and ii of paragraph b of that class were read as follows:

“i. would be included in Class 10 under subparagraph e of the second paragraph of that class, if this schedule were read without reference to this paragraph and subparagraphs a, b and e of the first paragraph of Class 41, and

“ii. at the time of its acquisition, may reasonably be expected to be used entirely in Canada and primarily for the purposes of smelting, refining or hydrometallurgy activities in respect of ore (other than ore from a gold or silver mine) extracted from a mineral resource located in Canada.”;

(b)  begins to be used within a reasonable time after being acquired;

(c)  is used solely in Québec and mainly in the course of carrying on a business, other than a recognized business in connection with which a major investment project or a large investment project, as the case may be, is carried out or is in the process of being carried out;

(c.1)  is not used in the course of operating an ethanol plant; and

(d)  was not, before its acquisition, used for any purpose or acquired to be used or leased for any purpose whatever;

“recognized business” has the meaning assigned by the first paragraph of section 737.18.14 or 737.18.17.1, as the case may be;

“refining” means any processing of a product from a smelting or concentration operation to remove impurities, which produces very high grade metal;

“resource region” means

(a)  one of the following administrative regions described in the Décret concernant la révision des limites des régions administratives du Québec (chapter D-11, r. 1):

i.  (subparagraph repealed),

ii.  administrative region 02 Saguenay-Lac-Saint-Jean,

iii.  administrative region 04 Mauricie,

iv.  administrative region 08 Abitibi-Témiscamingue,

v.  administrative region 09 Côte-Nord,

vi.  administrative region 10 Nord-du-Québec, or

vii.  administrative region 11 Gaspésie-Îles-de-la-Madeleine; or

(b)  one of the following regional county municipalities:

i.  Municipalité régionale de comté d’Antoine-Labelle,

i.1.  Municipalité régionale de comté de Kamouraska,

i.2.  Municipalité régionale de comté de La Matapédia,

i.3.  Municipalité régionale de comté de La Mitis,

ii.  Municipalité régionale de comté de La Vallée-de-la-Gatineau, or

ii.1.  Municipalité régionale de comté des Basques,

ii.2.  Municipalité régionale de comté de La Matanie,

iii.  Municipalité régionale de comté de Pontiac,

iv.  Municipalité régionale de comté de Rimouski-Neigette,

v.  Municipalité régionale de comté de Rivière-du-Loup, or

vi.  Municipalité régionale de comté de Témiscouata;

“salary or wages” in relation to a qualified corporation for a taxation year or a qualified partnership for a fiscal period means the aggregate of all amounts each of which is an amount (in the definition of “manufacturing or processing salary or wages” referred to as the “gross revenue” of an employee) incurred by the corporation in the taxation year or the partnership in the fiscal period, in respect of an employee of the corporation or partnership, as the case may be, and included in computing the employee’s income under Chapters I and II of Title II of Book III, except a remuneration based on profits or a bonus, where the remuneration or bonus relates, as the case may be, to an employee who is a specified shareholder of the corporation in the taxation year or a member of the partnership that is entitled, directly or indirectly, to a share of the income or of the loss of the partnership for the fiscal period of at least 10%;

“smelting” means any processing of an ore or concentrate in the course of which the charge is melted and chemically converted to produce a slag and a matte or metal containing impurities;

“specified member” of a corporation that is a cooperative, in a taxation year, means a member having, directly or indirectly, at any time in the year, at least 10% of the votes at a meeting of the members of the cooperative;

“total taxes” of a corporation for a taxation year means the aggregate of its tax payable under this Part for the year and of its tax payable under Parts IV, IV.1, VI and VI.1 for the year;

“unused portion of the tax credit” of a corporation for a taxation year means the amount by which the total amount that the corporation would be deemed to have paid to the Minister for that year under the first paragraph of sections 1029.8.36.166.43 and 1029.8.36.166.44 if no reference were made to the third paragraph of those sections, exceeds the corporation’s maximum tax credit amount for the year.

For the purposes of paragraph c of the definition of “qualified property” in the first paragraph, a property that is acquired in connection with the carrying out of a large investment project is deemed to be used in the course of carrying on a recognized business referred to in that paragraph that the corporation or partnership begins to carry on at a particular time and that relates to the large investment project, if the expenditures of a capital nature for its acquisition are incurred by the corporation or partnership in the period that begins at the beginning of the carrying out of the project and ends immediately before the particular time.

For the purposes of the definition of “eligible expenses” in the first paragraph, the expenses that are included, at the end of a taxation year or fiscal period, in the capital cost of a property do not include the expenses so included under section 180 or 182.

For the purposes of the definition of “expenses eligible for an additional increase” in the first paragraph, eligible expenses incurred in respect of a property before 8 October 2013 or after 7 October 2013 where the property is acquired pursuant to a written obligation entered into before 8 October 2013 or where the construction of the property, by or on behalf of the purchaser, had begun by 7 October 2013, eligible expenses incurred in respect of a property after 4 June 2014, except eligible expenses incurred after that date and before 1 July 2015 if the property is acquired on or before 4 June 2014 or, otherwise, the property is acquired pursuant to a written obligation entered into on or before that date or the construction of the property, by or on behalf of the purchaser, had begun by that date.

For the purposes of the definitions of “aluminum producing corporation” and “oil refining corporation” in the first paragraph, the rules set out in subparagraphs b and c of the second paragraph of section 1029.8.36.166.41 apply for the purpose of determining whether a corporation is associated with a partnership or trust at any time.

For the purposes of the definition of “manufacturing or processing salary or wages” in the first paragraph, an employee who spends 90% or more of working time on manufacturing or processing activities is deemed to spend all working time on those activities.

2009, c. 15, s. 303; 2010, c. 5, s. 159; 2010, c. 25, s. 171; 2011, c. 6, s. 190; 2011, c. 34, s. 92; 2012, c. 8, s. 229; 2013, c. 10, s. 122; I.N. 2015-05-01; 2015, c. 21, s. 459.

2013-06-05

1029.8.36.166.40. In this division,

“aluminum producing corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an aluminum producing business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“associated group” in a taxation year has the meaning assigned by section 1029.8.36.166.41;

“eligible expenses” of a corporation for a particular taxation year or of a partnership for a particular fiscal period, in respect of a qualified property, means

(a)  for a corporation, the aggregate of the following expenses, except expenses incurred with a person with whom the corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the corporation in the particular taxation year to acquire the qualified property that are included, at the end of that year, in the capital cost of the property and that are paid in the particular year,

ii.  the amount by which the expenses incurred by the corporation in the particular taxation year, or in a preceding taxation year for which the corporation was a qualified corporation, to acquire the qualified property that are included, at the end of the particular year or of the preceding year, as the case may be, in the capital cost of the property and that are paid after the end of the particular year or of the preceding year, as the case may be, but not later than 18 months after the end of that year, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the corporation’s eligible expenses in respect of which the corporation would be deemed to have paid an amount to the Minister under section 1029.8.36.166.43 for a taxation year preceding the particular year if that section were read without reference to its third paragraph, and

iii.  the expenses incurred by the corporation to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular taxation year, if the expenses are paid more than 18 months after the end of the corporation’s taxation year in which they were incurred and for which the corporation was a qualified corporation; and

(b)  for a partnership, the aggregate of the following expenses, except expenses incurred with a corporation that is a member of the partnership or with a person with whom such a corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the partnership in the particular fiscal period to acquire the qualified property that are included, at the end of that fiscal period, in the capital cost of the property and that are paid in that fiscal period,

ii.  the amount by which the expenses incurred by the partnership in the particular fiscal period, or in a preceding fiscal period for which the partnership was a qualified partnership, to acquire the qualified property that are included, at the end of the particular fiscal period or of the preceding fiscal period, as the case may be, in the capital cost of the property and that are paid after the end of the particular fiscal period or of the preceding fiscal period, as the case may be, but not later than 18 months after the end of that fiscal period, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the partnership’s eligible expenses in respect of which a corporation that is a member of the partnership would be deemed to have paid an amount to the Minister under section 1029.8.36.166.44 for a taxation year preceding that in which the particular fiscal period ends, if that section were read without reference to its third and sixth paragraphs and if, where the corporation was not a qualified corporation for the preceding taxation year, the corporation had been a qualified corporation for the preceding taxation year, and

iii.  the expenses incurred by the partnership to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular fiscal period, if the expenses are paid more than 18 months after the end of the partnership’s fiscal period in which they were incurred and for which the partnership was a qualified partnership;

“excluded corporation” for a taxation year means

(a)  a corporation that is exempt from tax for the year under Book VIII, other than an insurer referred to in paragraph k of section 998 that is not so exempt from tax on all of its taxable income for the year because of section 999.0.1;

(b)  a corporation that would be exempt from tax for the year under section 985, but for section 192;

(c)  an aluminum producing corporation for the year;

(d)  an oil refining corporation for the year; or

(e)  a corporation that was carrying on a recognized business, for the purposes of Division II.6.6.6.1, before 1 April 2008 and, if the taxation year is the one in which the calendar year 2008 or 2009 ends, that has not made an election under section 1029.8.36.72.82.3.1 for the year or a preceding taxation year or, if the taxation year is the one in which the calendar year 2010 ends, that has made an election under section 1029.8.36.72.82.3.1.1 for the year, or that is associated with such a corporation in the year;

“excluded partnership” for a fiscal period means a partnership that, at any time in the fiscal period after 13 March 2008, carries on an aluminum producing business or an oil refining business;

“hydrometallurgy” means any processing of an ore or concentrate that produces a metal, metallic salt or metallic compound by carrying out a chemical reaction in an aqueous or organic solution;

“limit relating to an unused portion” in respect of a corporation for a taxation year means the aggregate of its total taxes for the year and of the amount determined for the year in its respect under the second paragraph of section 1029.8.36.166.42;

“major investment project” has the meaning assigned by the first paragraph of section 737.18.14;

“maximum tax credit amount” of a corporation for a taxation year means the aggregate of the amount by which its total taxes for the year exceed the amount it is deemed to have paid to the Minister for the year under section 1029.8.36.166.46, and of the amount determined for the year in its respect under the first paragraph of section 1029.8.36.166.42;

“oil refining corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an oil refining business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“qualified corporation” for a taxation year means a corporation, other than an excluded corporation for the year, that, in the year, carries on a business in Québec and has an establishment in Québec;

“qualified partnership” for a fiscal period means a partnership, other than an excluded partnership for the fiscal period, that, in the fiscal period, carries on a business in Québec and has an establishment in Québec;

“qualified property” of a corporation or a partnership means a property that

(a)  is acquired by the corporation or partnership,

i.  in the case of a property to which paragraph a.1 applies because of the application of subparagraph i of that paragraph, after 13 March 2008 and before the date provided for in the second paragraph, but is not a property acquired pursuant to an obligation in writing entered into before 14 March 2008 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 13 March 2008, or

ii.  in the case of a property to which paragraph a.1 applies because of the application of subparagraph ii of that paragraph, after 20 March 2012 and before 1 January 2018, but is not a property acquired pursuant to an obligation in writing entered into before 21 March 2012 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 20 March 2012;

(a.1)  but for section 93.6, would be included

i.  in Class 29 or 43 of Schedule B to the Regulation respecting the Taxation Act (chapter I-3, r. 1), or

ii.  in Class 43 of Schedule B to the Regulation respecting the Taxation Act if subparagraphs i and ii of paragraph b of that class were read as follows:

“i. would be included in Class 10 under subparagraph e of the second paragraph of that class, if this schedule were read without reference to this paragraph and subparagraphs a, b and e of the first paragraph of Class 41, and

“ii. at the time of its acquisition, may reasonably be expected to be used entirely in Canada and primarily for the purposes of smelting, refining or hydrometallurgy activities in respect of ore (other than ore from a gold or silver mine) extracted from a mineral resource located in Canada.”;

(b)  begins to be used within a reasonable time after being acquired;

(c)  is used solely in Québec and mainly in the course of carrying on a business, other than a recognized business in connection with which a major investment project is carried out or is in the process of being carried out;

(c.1)  is not used in the course of operating an ethanol plant; and

(d)  was not, before its acquisition, used for any purpose or acquired to be used or leased for any purpose whatever;

“recognized business” has the meaning assigned by the first paragraph of section 737.18.14;

“refining” means any processing of a product from a smelting or concentration operation to remove impurities, which produces very high grade metal;

“resource region” means

(a)  one of the following administrative regions described in the Décret concernant la révision des limites des régions administratives du Québec (chapter D-11, r. 1):

i.  (subparagraph repealed),

ii.  administrative region 02 Saguenay-Lac-Saint-Jean,

iii.  administrative region 04 Mauricie,

iv.  administrative region 08 Abitibi-Témiscamingue,

v.  administrative region 09 Côte-Nord,

vi.  administrative region 10 Nord-du-Québec, or

vii.  administrative region 11 Gaspésie-Îles-de-la-Madeleine; or

(b)  one of the following regional county municipalities:

i.  Municipalité régionale de comté d’Antoine-Labelle,

i.1.  Municipalité régionale de comté de Kamouraska,

i.2.  Municipalité régionale de comté de La Matapédia,

i.3.  Municipalité régionale de comté de La Mitis,

ii.  Municipalité régionale de comté de La Vallée-de-la-Gatineau, or

ii.1.  Municipalité régionale de comté des Basques,

ii.2.  Municipalité régionale de comté de La Matanie,

iii.  Municipalité régionale de comté de Pontiac,

iv.  Municipalité régionale de comté de Rimouski-Neigette,

v.  Municipalité régionale de comté de Rivière-du-Loup, or

vi.  Municipalité régionale de comté de Témiscouata;

“smelting” means any processing of an ore or concentrate in the course of which the charge is melted and chemically converted to produce a slag and a matte or metal containing impurities;

“specified member” of a corporation that is a cooperative, in a taxation year, means a member having, directly or indirectly, at any time in the year, at least 10% of the votes at a meeting of the members of the cooperative;

“total taxes” of a corporation for a taxation year means the aggregate of its tax payable under this Part for the year and of its tax payable under Parts IV, IV.1, VI and VI.1 for the year;

“unused portion of the tax credit” of a corporation for a taxation year means the amount by which the total amount that the corporation would be deemed to have paid to the Minister for that year under the first paragraph of sections 1029.8.36.166.43 and 1029.8.36.166.44 if no reference were made to the third paragraph of those sections, exceeds the corporation’s maximum tax credit amount for the year.

The date to which subparagraph i of paragraph a of the definition of “qualified property” in the first paragraph refers, in respect of a property to which paragraph a.1 of that definition applies because of the application of subparagraph i of that paragraph a.1, is

(a)  1 January 2018, if the property is included in Class 43 of Schedule B to the Regulation respecting the Taxation Act and is acquired primarily for the purposes of smelting, refining or hydrometallurgy activities in respect of ore (other than ore from a gold or silver mine); or

(b)  1 January 2016, in any other case.

For the purposes of the definition of “eligible expenses” in the first paragraph, the expenses that are included, at the end of a taxation year or fiscal period, in the capital cost of a property do not include the expenses so included under section 180 or 182.

For the purposes of the definitions of “aluminum producing corporation” and “oil refining corporation” in the first paragraph, the rules set out in subparagraphs b and c of the second paragraph of section 1029.8.36.166.41 apply for the purpose of determining whether a corporation is associated with a partnership or trust at any time.

2009, c. 15, s. 303; 2010, c. 5, s. 159; 2010, c. 25, s. 171; 2011, c. 6, s. 190; 2011, c. 34, s. 92; 2012, c. 8, s. 229; 2013, c. 10, s. 122; I.N. 2015-05-01.

2012-05-09

1029.8.36.166.40. In this division,

“aluminum producing corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an aluminum producing business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“associated group” in a taxation year has the meaning assigned by section 1029.8.36.166.41;

“eligible expenses” of a corporation for a particular taxation year or of a partnership for a particular fiscal period, in respect of a qualified property, means

(a)   for a corporation, the aggregate of the following expenses, except expenses incurred with a person with whom the corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the corporation in the particular taxation year to acquire the qualified property that are included, at the end of that year, in the capital cost of the property and that are paid in the particular year,

ii.  the amount by which the expenses incurred by the corporation in the particular taxation year, or in a preceding taxation year for which the corporation was a qualified corporation, to acquire the qualified property that are included, at the end of the particular year or of the preceding year, as the case may be, in the capital cost of the property and that are paid after the end of the particular year or of the preceding year, as the case may be, but not later than 18 months after the end of that year, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the corporation’s eligible expenses in respect of which the corporation would be deemed to have paid an amount to the Minister under section 1029.8.36.166.43 for a taxation year preceding the particular year if that section were read without reference to its third paragraph, and

iii.  the expenses incurred by the corporation to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular taxation year, if the expenses are paid more than 18 months after the end of the corporation’s taxation year in which they were incurred and for which the corporation was a qualified corporation; and

(b)  for a partnership, the aggregate of the following expenses, except expenses incurred with a corporation that is a member of the partnership or with a person with whom such a corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the partnership in the particular fiscal period to acquire the qualified property that are included, at the end of that fiscal period, in the capital cost of the property and that are paid in that fiscal period,

ii.  the amount by which the expenses incurred by the partnership in the particular fiscal period, or in a preceding fiscal period for which the partnership was a qualified partnership, to acquire the qualified property that are included, at the end of the particular fiscal period or of the preceding fiscal period, as the case may be, in the capital cost of the property and that are paid after the end of the particular fiscal period or of the preceding fiscal period, as the case may be, but not later than 18 months after the end of that fiscal period, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the partnership’s eligible expenses in respect of which a corporation that is a member of the partnership would be deemed to have paid an amount to the Minister under section 1029.8.36.166.44 for a taxation year preceding that in which the particular fiscal period ends, if that section were read without reference to its third and sixth paragraphs and if, where the corporation was not a qualified corporation for the preceding taxation year, the corporation had been a qualified corporation for the preceding taxation year, and

iii.  the expenses incurred by the partnership to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular fiscal period, if the expenses are paid more than 18 months after the end of the partnership’s fiscal period in which they were incurred and for which the partnership was a qualified partnership;

“excluded corporation” for a taxation year means

(a)  a corporation that is exempt from tax for the year under Book VIII, other than an insurer referred to in paragraph k of section 998 that is not so exempt from tax on all of its taxable income for the year because of section 999.0.1;

(b)  a corporation that would be exempt from tax for the year under section 985, but for section 192;

(c)  an aluminum producing corporation for the year;

(d)  an oil refining corporation for the year; or

(e)  a corporation that was carrying on a recognized business, for the purposes of Division II.6.6.6.1, before 1 April 2008 and, if the taxation year is the one in which the calendar year 2008 or 2009 ends, that has not made an election under section 1029.8.36.72.82.3.1 for the year or a preceding taxation year or, if the taxation year is the one in which the calendar year 2010 ends, that has made an election under section 1029.8.36.72.82.3.1.1 for the year, or that is associated with such a corporation in the year;

“excluded partnership” for a fiscal period means a partnership that, at any time in the fiscal period after 13 March 2008, carries on an aluminum producing business or an oil refining business;

“limit relating to an unused portion” in respect of a corporation for a taxation year means the aggregate of its total taxes for the year and of the amount determined for the year in its respect under the second paragraph of section 1029.8.36.166.42;

“major investment project” has the meaning assigned by the first paragraph of section 737.18.14;

“maximum tax credit amount” of a corporation for a taxation year means the aggregate of the amount by which its total taxes for the year exceed the amount it is deemed to have paid to the Minister for the year under section 1029.8.36.166.46, and of the amount determined for the year in its respect under the first paragraph of section 1029.8.36.166.42;

“oil refining corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an oil refining business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“qualified corporation” for a taxation year means a corporation, other than an excluded corporation for the year, that, in the year, carries on a business in Québec and has an establishment in Québec;

“qualified partnership” for a fiscal period means a partnership, other than an excluded partnership for the fiscal period, that, in the fiscal period, carries on a business in Québec and has an establishment in Québec;

“qualified property” of a corporation or partnership means a property that is acquired by the corporation or partnership, that, but for section 93.6, would be included in Class 29 or 43 of Schedule B to the Regulation respecting the Taxation Act (chapter I-3, r. 1) and that

(a)  is acquired after 13 March 2008 and before 1 January 2016, but is not a property acquired pursuant to an obligation in writing entered into before 14 March 2008 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 13 March 2008;

(b)  begins to be used within a reasonable time after being acquired;

(c)  is used solely in Québec and mainly in the course of carrying on a business, other than a recognized business in connection with which a major investment project is carried out or is in the process of being carried out;

(c.1)  is not used in the course of operating an ethanol plant; and

(d)  was not, before its acquisition, used for any purpose or acquired to be used or leased for any purpose whatever;

“recognized business” has the meaning assigned by the first paragraph of section 737.18.14;

“resource region” means

(a)  one of the following administrative regions described in the Décret concernant la révision des limites des régions administratives du Québec (chapter D-11, r. 1):

i.  (subparagraph repealed);

ii.  administrative region 02 Saguenay-Lac-Saint-Jean,

iii.  administrative region 04 Mauricie,

iv.  administrative region 08 Abitibi-Témiscamingue,

v.  administrative region 09 Côte-Nord,

vi.  administrative region 10 Nord-du-Québec, or

vii.  administrative region 11 Gaspésie-Îles-de-la-Madeleine; or

(b)  one of the following regional county municipalities:

i.  Municipalité régionale de comté d’Antoine-Labelle,

i.1.  Municipalité régionale de comté de Kamouraska,

i.2.  Municipalité régionale de comté de La Matapédia,

i.3.  Municipalité régionale de comté de La Mitis,

ii.  Municipalité régionale de comté de La Vallée-de-la-Gatineau, or

ii.1.  Municipalité régionale de comté des Basques,

ii.2.  Municipalité régionale de comté de Matane,

iii.  Municipalité régionale de comté de Pontiac;

iv.  Municipalité régionale de comté de Rimouski-Neigette,

v.  Municipalité régionale de comté de Rivière-du-Loup, or

vi.  Municipalité régionale de comté de Témiscouata;

“specified member” of a corporation that is a cooperative, in a taxation year, means a member having, directly or indirectly, at any time in the year, at least 10% of the votes at a meeting of the members of the cooperative;

“total taxes” of a corporation for a taxation year means the aggregate of its tax payable under this Part for the year and of its tax payable under Parts IV, IV.1, VI and VI.1 for the year;

“unused portion of the tax credit” of a corporation for a taxation year means the amount by which the total amount that the corporation would be deemed to have paid to the Minister for that year under the first paragraph of sections 1029.8.36.166.43 and 1029.8.36.166.44 if no reference were made to the third paragraph of those sections, exceeds the corporation’s maximum tax credit amount for the year.

For the purposes of the definition of “eligible expenses” in the first paragraph, the expenses that are included, at the end of a taxation year or fiscal period, in the capital cost of a property do not include the expenses so included under section 180 or 182.

For the purposes of the definitions of “aluminum producing corporation” and “oil refining corporation” in the first paragraph, the rules set out in subparagraphs b and c of the second paragraph of section 1029.8.36.166.41 apply for the purpose of determining whether a corporation is associated with a partnership or trust at any time.

2009, c. 15, s. 303; 2010, c. 5, s. 159; 2010, c. 25, s. 171; 2011, c. 6, s. 190; 2011, c. 34, s. 92; 2012, c. 8, s. 229.

2011-12-09

1029.8.36.166.40. In this division,

“aluminum producing corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an aluminum producing business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“associated group” in a taxation year has the meaning assigned by section 1029.8.36.166.41;

“eligible expenses” of a corporation for a particular taxation year or of a partnership for a particular fiscal period, in respect of a qualified property, means

(a)   for a corporation, the aggregate of the following expenses, except expenses incurred with a person with whom the corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the corporation in the particular taxation year to acquire the qualified property that are included, at the end of that year, in the capital cost of the property and that are paid in the particular year,

ii.  the amount by which the expenses incurred by the corporation in the particular taxation year or a preceding taxation year to acquire the qualified property that are included, at the end of the particular year or of the preceding year, as the case may be, in the capital cost of the property and that are paid after the end of the particular year or of the preceding year, as the case may be, but not later than 18 months after the end of that year, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the corporation’s eligible expenses in respect of which the corporation would be deemed to have paid an amount to the Minister under section 1029.8.36.166.43 for a taxation year preceding the particular year if that section were read without reference to its third paragraph, and

iii.  the expenses incurred by the corporation to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular taxation year, if the expenses are paid more than 18 months after the end of the taxation year in which they were incurred; and

(b)  for a partnership, the aggregate of the following expenses, except expenses incurred with a corporation that is a member of the partnership or with a person with whom such a corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the partnership in the particular fiscal period to acquire the qualified property that are included, at the end of that fiscal period, in the capital cost of the property and that are paid in that fiscal period,

ii.  the amount by which the expenses incurred by the partnership in the particular fiscal period or a preceding fiscal period to acquire the qualified property that are included, at the end of the particular fiscal period or of the preceding fiscal period, as the case may be, in the capital cost of the property and that are paid after the end of the particular fiscal period or of the preceding fiscal period, as the case may be, but not later than 18 months after the end of that fiscal period, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the partnership’s eligible expenses in respect of which a corporation that is a member of the partnership would be deemed to have paid an amount to the Minister under section 1029.8.36.166.44 for a taxation year preceding that in which the particular fiscal period ends if that section were read without reference to its third paragraph, and

iii.  the expenses incurred by the partnership to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular fiscal period, if the expenses are paid more than 18 months after the end of the fiscal period in which they were incurred;

“excluded corporation” for a taxation year means

(a)  a corporation that is exempt from tax for the year under Book VIII, other than an insurer referred to in paragraph k of section 998 that is not so exempt from tax on all of its taxable income for the year because of section 999.0.1;

(b)  a corporation that would be exempt from tax for the year under section 985, but for section 192;

(c)  an aluminum producing corporation for the year;

(d)  an oil refining corporation for the year; or

(e)  a corporation that was carrying on a recognized business, for the purposes of Division II.6.6.6.1, before 1 April 2008 and, if the taxation year is the one in which the calendar year 2008 or 2009 ends, that has not made an election under section 1029.8.36.72.82.3.1 for the year or a preceding taxation year or, if the taxation year is the one in which the calendar year 2010 ends, that has made an election under section 1029.8.36.72.82.3.1.1 for the year, or that is associated with such a corporation in the year;

“excluded partnership” for a fiscal period means a partnership that, at any time in the fiscal period after 13 March 2008, carries on an aluminum producing business or an oil refining business;

“limit relating to an unused portion” in respect of a corporation for a taxation year means the aggregate of its total taxes for the year and of the amount determined for the year in its respect under the second paragraph of section 1029.8.36.166.42;

“major investment project” has the meaning assigned by the first paragraph of section 737.18.14;

“maximum tax credit amount” of a corporation for a taxation year means the aggregate of the amount by which its total taxes for the year exceed the amount it is deemed to have paid to the Minister for the year under section 1029.8.36.166.46, and of the amount determined for the year in its respect under the first paragraph of section 1029.8.36.166.42;

“oil refining corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an oil refining business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“qualified corporation” for a taxation year means a corporation, other than an excluded corporation for the year, that, in the year, carries on a business in Québec and has an establishment in Québec;

“qualified partnership” for a fiscal period means a partnership, other than an excluded partnership for the fiscal period, that, in the fiscal period, carries on a business in Québec and has an establishment in Québec;

“qualified property” of a corporation or partnership means a property that is acquired by the corporation or partnership, that is included in Class 29 of Schedule B to the Regulation respecting the Taxation Act (R.R.Q., c. I-3, r. 1), if such an acquisition occurs in any of the years 2008 to 2011, or in Class 43 of that Schedule in any other case, and that

(a)  is acquired after 13 March 2008 and before 1 January 2016, but is not a property acquired pursuant to an obligation in writing entered into before 14 March 2008 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 13 March 2008;

(b)  begins to be used within a reasonable time after being acquired;

(c)  is used solely in Québec and mainly in the course of carrying on a business, other than a recognized business in connection with which a major investment project is carried out or is in the process of being carried out;

(c.1)  is not used in the course of operating an ethanol plant; and

(d)  was not, before its acquisition, used for any purpose or acquired to be used or leased for any purpose whatever;

“recognized business” has the meaning assigned by the first paragraph of section 737.18.14;

“resource region” means

(a)  one of the following administrative regions described in the Décret concernant la révision des limites des régions administratives du Québec (R.R.Q., c. D-11, r. 1):

i.  (subparagraph repealed);

ii.  administrative region 02 Saguenay-Lac-Saint-Jean,

iii.  administrative region 04 Mauricie,

iv.  administrative region 08 Abitibi-Témiscamingue,

v.  administrative region 09 Côte-Nord,

vi.  administrative region 10 Nord-du-Québec, or

vii.  administrative region 11 Gaspésie-Îles-de-la-Madeleine; or

(b)  one of the following regional county municipalities:

i.  Municipalité régionale de comté d’Antoine-Labelle,

i.1.  Municipalité régionale de comté de Kamouraska,

i.2.  Municipalité régionale de comté de La Matapédia,

i.3.  Municipalité régionale de comté de La Mitis,

ii.  Municipalité régionale de comté de La Vallée-de-la-Gatineau, or

ii.1.  Municipalité régionale de comté des Basques,

ii.2.  Municipalité régionale de comté de Matane,

iii.  Municipalité régionale de comté de Pontiac;

iv.  Municipalité régionale de comté de Rimouski-Neigette,

v.  Municipalité régionale de comté de Rivière-du-Loup, or

vi.  Municipalité régionale de comté de Témiscouata;

“specified member” of a corporation that is a cooperative, in a taxation year, means a member having, directly or indirectly, at any time in the year, at least 10% of the votes at a meeting of the members of the cooperative;

“total taxes” of a corporation for a taxation year means the aggregate of its tax payable under this Part for the year and of its tax payable under Parts IV, IV.1, VI and VI.1 for the year;

“unused portion of the tax credit” of a corporation for a taxation year means the amount by which the total amount that the corporation would be deemed to have paid to the Minister for that year under the first paragraph of sections 1029.8.36.166.43 and 1029.8.36.166.44 if no reference were made to the third paragraph of those sections, exceeds the corporation’s maximum tax credit amount for the year.

For the purposes of the definition of “eligible expenses” in the first paragraph, the expenses that are included, at the end of a taxation year or fiscal period, in the capital cost of a property do not include the expenses so included under section 180 or 182.

For the purposes of the definitions of “aluminum producing corporation” and “oil refining corporation” in the first paragraph, the rules set out in subparagraphs b and c of the second paragraph of section 1029.8.36.166.41 apply for the purpose of determining whether a corporation is associated with a partnership or trust at any time.

2009, c. 15, s. 303; 2010, c. 5, s. 159; 2010, c. 25, s. 171; 2011, c. 6, s. 190; 2011, c. 34, s. 92.

2011-06-06

1029.8.36.166.40. In this division,

“aluminum producing corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an aluminum producing business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“associated group” in a taxation year has the meaning assigned by section 1029.8.36.166.41;

“eligible expenses” of a corporation for a particular taxation year or of a partnership for a particular fiscal period, in respect of a qualified property, means

(a)   for a corporation, the aggregate of the following expenses, except expenses incurred with a person with whom the corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the corporation in the particular taxation year to acquire the qualified property that are included, at the end of that year, in the capital cost of the property and that are paid in the particular year,

ii.  the amount by which the expenses incurred by the corporation in the particular taxation year or a preceding taxation year to acquire the qualified property that are included, at the end of the particular year or of the preceding year, as the case may be, in the capital cost of the property and that are paid after the end of the particular year or of the preceding year, as the case may be, but not later than 18 months after the end of that year, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the corporation’s eligible expenses in respect of which the corporation would be deemed to have paid an amount to the Minister under section 1029.8.36.166.43 for a taxation year preceding the particular year if that section were read without reference to its third paragraph, and

iii.  the expenses incurred by the corporation to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular taxation year, if the expenses are paid more than 18 months after the end of the taxation year in which they were incurred; and

(b)  for a partnership, the aggregate of the following expenses, except expenses incurred with a corporation that is a member of the partnership or with a person with whom such a corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the partnership in the particular fiscal period to acquire the qualified property that are included, at the end of that fiscal period, in the capital cost of the property and that are paid in that fiscal period,

ii.  the amount by which the expenses incurred by the partnership in the particular fiscal period or a preceding fiscal period to acquire the qualified property that are included, at the end of the particular fiscal period or of the preceding fiscal period, as the case may be, in the capital cost of the property and that are paid after the end of the particular fiscal period or of the preceding fiscal period, as the case may be, but not later than 18 months after the end of that fiscal period, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the partnership’s eligible expenses in respect of which a corporation that is a member of the partnership would be deemed to have paid an amount to the Minister under section 1029.8.36.166.44 for a taxation year preceding that in which the particular fiscal period ends if that section were read without reference to its third paragraph, and

iii.  the expenses incurred by the partnership to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular fiscal period, if the expenses are paid more than 18 months after the end of the fiscal period in which they were incurred;

“excluded corporation” for a taxation year means

(a)  a corporation that is exempt from tax for the year under Book VIII, other than an insurer referred to in paragraph k of section 998 that is not so exempt from tax on all of its taxable income for the year because of section 999.0.1;

(b)  a corporation that would be exempt from tax for the year under section 985, but for section 192;

(c)  an aluminum producing corporation for the year;

(d)  an oil refining corporation for the year; or

(e)  a corporation that was carrying on a recognized business, for the purposes of Division II.6.6.6.1, before 1 April 2008 and, if the taxation year is the one in which the calendar year 2008 or 2009 ends, that has not made an election under section 1029.8.36.72.82.3.1 for the year or a preceding taxation year or, if the taxation year is the one in which the calendar year 2010 ends, that has made an election under section 1029.8.36.72.82.3.1.1 for the year, or that is associated with such a corporation in the year;

“excluded partnership” for a fiscal period means a partnership that, at any time in the fiscal period after 13 March 2008, carries on an aluminum producing business or an oil refining business;

“limit relating to an unused portion” in respect of a corporation for a taxation year means the aggregate of its total taxes for the year and of the amount determined for the year in its respect under the second paragraph of section 1029.8.36.166.42;

“major investment project” has the meaning assigned by the first paragraph of section 737.18.14;

“maximum tax credit amount” of a corporation for a taxation year means the aggregate of the amount by which its total taxes for the year exceed the amount it is deemed to have paid to the Minister for the year under section 1029.8.36.166.46, and of the amount determined for the year in its respect under the first paragraph of section 1029.8.36.166.42;

“oil refining corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an oil refining business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“qualified corporation” for a taxation year means a corporation, other than an excluded corporation for the year, that, in the year, carries on a business in Québec and has an establishment in Québec;

“qualified partnership” for a fiscal period means a partnership, other than an excluded partnership for the fiscal period, that, in the fiscal period, carries on a business in Québec and has an establishment in Québec;

“qualified property” of a corporation or partnership means a property that is acquired by the corporation or partnership, that is included in Class 29 of Schedule B to the Regulation respecting the Taxation Act (R.R.Q., c. I-3, r. 1), if such an acquisition occurs in any of the years 2008 to 2011, or in Class 43 of that Schedule in any other case, and that

(a)  is acquired after 13 March 2008 and before 1 January 2016, but is not a property acquired pursuant to an obligation in writing entered into before 14 March 2008 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 13 March 2008;

(b)  begins to be used within a reasonable time after being acquired;

(c)  is used solely in Québec and mainly in the course of carrying on a business, other than a recognized business in connection with which a major investment project is carried out or is in the process of being carried out; and

(d)  was not, before its acquisition, used for any purpose or acquired to be used or leased for any purpose whatever;

“recognized business” has the meaning assigned by the first paragraph of section 737.18.14;

“resource region” means

(a)  one of the following administrative regions described in the Décret concernant la révision des limites des régions administratives du Québec (R.R.Q., c. D-11, r. 1):

i.  (subparagraph repealed);

ii.  administrative region 02 Saguenay-Lac-Saint-Jean,

iii.  administrative region 04 Mauricie,

iv.  administrative region 08 Abitibi-Témiscamingue,

v.  administrative region 09 Côte-Nord,

vi.  administrative region 10 Nord-du-Québec, or

vii.  administrative region 11 Gaspésie-Îles-de-la-Madeleine; or

(b)  one of the following regional county municipalities:

i.  Municipalité régionale de comté d’Antoine-Labelle,

i.1.  Municipalité régionale de comté de Kamouraska,

i.2.  Municipalité régionale de comté de La Matapédia,

i.3.  Municipalité régionale de comté de La Mitis,

ii.  Municipalité régionale de comté de La Vallée-de-la-Gatineau, or

ii.1.  Municipalité régionale de comté des Basques,

ii.2.  Municipalité régionale de comté de Matane,

iii.  Municipalité régionale de comté de Pontiac;

iv.  Municipalité régionale de comté de Rimouski-Neigette,

v.  Municipalité régionale de comté de Rivière-du-Loup, or

vi.  Municipalité régionale de comté de Témiscouata;

“specified member” of a corporation that is a cooperative, in a taxation year, means a member having, directly or indirectly, at any time in the year, at least 10% of the votes at a meeting of the members of the cooperative;

“total taxes” of a corporation for a taxation year means the aggregate of its tax payable under this Part for the year and of its tax payable under Parts IV, IV.1, VI and VI.1 for the year;

“unused portion of the tax credit” of a corporation for a taxation year means the amount by which the total amount that the corporation would be deemed to have paid to the Minister for that year under the first paragraph of sections 1029.8.36.166.43 and 1029.8.36.166.44 if no reference were made to the third paragraph of those sections, exceeds the corporation’s maximum tax credit amount for the year.

For the purposes of the definition of “eligible expenses” in the first paragraph, the expenses that are included, at the end of a taxation year or fiscal period, in the capital cost of a property do not include the expenses so included under section 180 or 182.

For the purposes of the definitions of “aluminum producing corporation” and “oil refining corporation” in the first paragraph, the rules set out in subparagraphs b and c of the second paragraph of section 1029.8.36.166.41 apply for the purpose of determining whether a corporation is associated with a partnership or trust at any time.

2009, c. 15, s. 303; 2010, c. 5, s. 159; 2010, c. 25, s. 171; 2011, c. 6, s. 190.

2010-10-27

1029.8.36.166.40. In this division,

“aluminum producing corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an aluminum producing business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“associated group” in a taxation year has the meaning assigned by section 1029.8.36.166.41;

“eligible expenses” of a corporation for a particular taxation year or of a partnership for a particular fiscal period, in respect of a qualified property, means

(a)   for a corporation, the aggregate of the following expenses, except expenses incurred with a person with whom the corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the corporation in the particular taxation year to acquire the qualified property that are included, at the end of that year, in the capital cost of the property and that are paid in the particular year,

ii.  the amount by which the expenses incurred by the corporation in the particular taxation year or a preceding taxation year to acquire the qualified property that are included, at the end of the particular year or of the preceding year, as the case may be, in the capital cost of the property and that are paid after the end of the particular year or of the preceding year, as the case may be, but not later than 18 months after the end of that year, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the corporation’s eligible expenses in respect of which the corporation would be deemed to have paid an amount to the Minister under section 1029.8.36.166.43 for a taxation year preceding the particular year if that section were read without reference to its third paragraph, and

iii.  the expenses incurred by the corporation to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular taxation year, if the expenses are paid more than 18 months after the end of the taxation year in which they were incurred; and

(b)  for a partnership, the aggregate of the following expenses, except expenses incurred with a corporation that is a member of the partnership or with a person with whom such a corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the partnership in the particular fiscal period to acquire the qualified property that are included, at the end of that fiscal period, in the capital cost of the property and that are paid in that fiscal period,

ii.  the amount by which the expenses incurred by the partnership in the particular fiscal period or a preceding fiscal period to acquire the qualified property that are included, at the end of the particular fiscal period or of the preceding fiscal period, as the case may be, in the capital cost of the property and that are paid after the end of the particular fiscal period or of the preceding fiscal period, as the case may be, but not later than 18 months after the end of that fiscal period, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the partnership’s eligible expenses in respect of which a corporation that is a member of the partnership would be deemed to have paid an amount to the Minister under section 1029.8.36.166.44 for a taxation year preceding that in which the particular fiscal period ends if that section were read without reference to its third paragraph, and

iii.  the expenses incurred by the partnership to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular fiscal period, if the expenses are paid more than 18 months after the end of the fiscal period in which they were incurred;

“excluded corporation” for a taxation year means

(a)  a corporation that is exempt from tax for the year under Book VIII, other than an insurer referred to in paragraph k of section 998 that is not so exempt from tax on all of its taxable income for the year because of section 999.0.1;

(b)  a corporation that would be exempt from tax for the year under section 985, but for section 192;

(c)  an aluminum producing corporation for the year;

(d)  an oil refining corporation for the year; or

(e)  a corporation that was carrying on a recognized business, for the purposes of Division II.6.6.6.1, before 1 April 2008 and, if the taxation year is the one in which the calendar year 2008 or 2009 ends, that has not made an election under section 1029.8.36.72.82.3.1 for the year or a preceding taxation year or, if the taxation year is the one in which the calendar year 2010 ends, that has made an election under section 1029.8.36.72.82.3.1.1 for the year, or that is associated with such a corporation in the year;

“excluded partnership” for a fiscal period means a partnership that, at any time in the fiscal period after 13 March 2008, carries on an aluminum producing business or an oil refining business;

“limit relating to an unused portion” in respect of a corporation for a taxation year means the aggregate of its total taxes for the year and of the amount determined for the year in its respect under the second paragraph of section 1029.8.36.166.42;

“major investment project” has the meaning assigned by the first paragraph of section 737.18.14;

“maximum tax credit amount” of a corporation for a taxation year means the aggregate of the amount by which its total taxes for the year exceed the amount it is deemed to have paid to the Minister for the year under section 1029.8.36.166.46, and of the amount determined for the year in its respect under the first paragraph of section 1029.8.36.166.42;

“oil refining corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an oil refining business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“qualified corporation” for a taxation year means a corporation, other than an excluded corporation for the year, that, in the year, carries on a business in Québec and has an establishment in Québec;

“qualified partnership” for a fiscal period means a partnership, other than an excluded partnership for the fiscal period, that, in the fiscal period, carries on a business in Québec and has an establishment in Québec;

“qualified property” of a corporation or partnership means a prescribed property that is acquired by the corporation or partnership and that

(a)  is acquired after 13 March 2008 and before 1 January 2016, but is not a property acquired pursuant to an obligation in writing entered into before 14 March 2008 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 13 March 2008;

(b)  begins to be used within a reasonable time after being acquired;

(c)  is used solely in Québec and mainly in the course of carrying on a business, other than a recognized business in connection with which a major investment project is carried out or is in the process of being carried out; and

(d)  was not, before its acquisition, used for any purpose or acquired to be used or leased for any purpose whatever;

“recognized business” has the meaning assigned by the first paragraph of section 737.18.14;

“resource region” means

(a)  one of the following administrative regions described in the Décret concernant la révision des limites des régions administratives du Québec (R.R.Q., c. D-11, r. 1):

i.  (subparagraph repealed);

ii.  administrative region 02 Saguenay-Lac-Saint-Jean,

iii.  administrative region 04 Mauricie,

iv.  administrative region 08 Abitibi-Témiscamingue,

v.  administrative region 09 Côte-Nord,

vi.  administrative region 10 Nord-du-Québec, or

vii.  administrative region 11 Gaspésie-Îles-de-la-Madeleine; or

(b)  one of the following regional county municipalities:

i.  Municipalité régionale de comté d’Antoine-Labelle,

i.1.  Municipalité régionale de comté de Kamouraska,

i.2.  Municipalité régionale de comté de La Matapédia,

i.3.  Municipalité régionale de comté de La Mitis,

ii.  Municipalité régionale de comté de La Vallée-de-la-Gatineau, or

ii.1.  Municipalité régionale de comté des Basques,

ii.2.  Municipalité régionale de comté de Matane,

iii.  Municipalité régionale de comté de Pontiac;

iv.  Municipalité régionale de comté de Rimouski-Neigette,

v.  Municipalité régionale de comté de Rivière-du-Loup, or

vi.  Municipalité régionale de comté de Témiscouata;

“specified member” of a corporation that is a cooperative, in a taxation year, means a member having, directly or indirectly, at any time in the year, at least 10% of the votes at a meeting of the members of the cooperative;

“total taxes” of a corporation for a taxation year means the aggregate of its tax payable under this Part for the year and of its tax payable under Parts IV, IV.1, VI and VI.1 for the year;

“unused portion of the tax credit” of a corporation for a taxation year means the amount by which the total amount that the corporation would be deemed to have paid to the Minister for that year under the first paragraph of sections 1029.8.36.166.43 and 1029.8.36.166.44 if no reference were made to the third paragraph of those sections, exceeds the corporation’s maximum tax credit amount for the year.

For the purposes of the definition of “eligible expenses” in the first paragraph, the expenses that are included, at the end of a taxation year or fiscal period, in the capital cost of a property do not include the expenses so included under section 180 or 182.

For the purposes of the definitions of “aluminum producing corporation” and “oil refining corporation” in the first paragraph, the rules set out in subparagraphs b and c of the second paragraph of section 1029.8.36.166.41 apply for the purpose of determining whether a corporation is associated with a partnership or trust at any time.

2009, c. 15, s. 303; 2010, c. 5, s. 159; 2010, c. 25, s. 171.

2010-04-20

1029.8.36.166.40. In this division,

“aluminum producing corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an aluminum producing business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“associated group” in a taxation year has the meaning assigned by section 1029.8.36.166.41;

“eligible expenses” of a corporation for a particular taxation year or of a partnership for a particular fiscal period, in respect of a qualified property, means

(a)   for a corporation, the aggregate of the following expenses, except expenses incurred with a person with whom the corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the corporation in the particular taxation year to acquire the qualified property that are included, at the end of that year, in the capital cost of the property and that are paid in the particular year,

ii.  the amount by which the expenses incurred by the corporation in the particular taxation year or a preceding taxation year to acquire the qualified property that are included, at the end of the particular year or of the preceding year, as the case may be, in the capital cost of the property and that are paid after the end of the particular year or of the preceding year, as the case may be, but not later than 18 months after the end of that year, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the corporation’s eligible expenses in respect of which the corporation would be deemed to have paid an amount to the Minister under section 1029.8.36.166.43 for a taxation year preceding the particular year if that section were read without reference to its second paragraph, and

iii.  the expenses incurred by the corporation to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular taxation year, if the expenses are paid more than 18 months after the end of the taxation year in which they were incurred; and

(b)  for a partnership, the aggregate of the following expenses, except expenses incurred with a corporation that is a member of the partnership or with a person with whom such a corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the expenses incurred by the partnership in the particular fiscal period to acquire the qualified property that are included, at the end of that fiscal period, in the capital cost of the property and that are paid in that fiscal period,

ii.  the amount by which the expenses incurred by the partnership in the particular fiscal period or a preceding fiscal period to acquire the qualified property that are included, at the end of the particular fiscal period or of the preceding fiscal period, as the case may be, in the capital cost of the property and that are paid after the end of the particular fiscal period or of the preceding fiscal period, as the case may be, but not later than 18 months after the end of that fiscal period, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the partnership’s eligible expenses in respect of which a corporation that is a member of the partnership would be deemed to have paid an amount to the Minister under section 1029.8.36.166.44 for a taxation year preceding that in which the particular fiscal period ends if that section were read without reference to its second paragraph, and

iii.  the expenses incurred by the partnership to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular fiscal period, if the expenses are paid more than 18 months after the end of the fiscal period in which they were incurred;

“excluded corporation” for a taxation year means

(a)  a corporation that is exempt from tax for the year under Book VIII, other than an insurer referred to in paragraph k of section 998 that is not so exempt from tax on all of its taxable income for the year because of section 999.0.1;

(b)  a corporation that would be exempt from tax for the year under section 985, but for section 192;

(c)  an aluminum producing corporation for the year;

(d)  an oil refining corporation for the year; or

(e)  a corporation that was carrying on a recognized business, for the purposes of Division II.6.6.6.1, before 1 April 2008 and that has not made an election under section 1029.8.36.72.82.3.1 for the year or a preceding taxation year, or that is associated with such a corporation in the year;

“excluded partnership” for a fiscal period means a partnership that, at any time in the fiscal period after 13 March 2008, carries on an aluminum producing business or an oil refining business;

“limit relating to an unused portion” in respect of a corporation for a taxation year means the aggregate of its total taxes for the year and of the amount determined for the year in its respect under the second paragraph of section 1029.8.36.166.42;

“major investment project” has the meaning assigned by the first paragraph of section 737.18.14;

“maximum tax credit amount” of a corporation for a taxation year means the aggregate of the amount by which its total taxes for the year exceed the amount it is deemed to have paid to the Minister for the year under section 1029.8.36.166.46, and of the amount determined for the year in its respect under the first paragraph of section 1029.8.36.166.42;

“oil refining corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an oil refining business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“qualified corporation” for a taxation year means a corporation, other than an excluded corporation for the year, that, in the year, carries on a business in Québec and has an establishment in Québec;

“qualified partnership” for a fiscal period means a partnership, other than an excluded partnership for the fiscal period, that, in the fiscal period, carries on a business in Québec and has an establishment in Québec;

“qualified property” of a corporation or partnership means a prescribed property that is acquired by the corporation or partnership and that

(a)  is acquired after 13 March 2008 and before 1 January 2016, but is not a property acquired pursuant to an obligation in writing entered into before 14 March 2008 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 13 March 2008;

(b)  begins to be used within a reasonable time after being acquired;

(c)  is used solely in Québec and mainly in the course of carrying on a business, other than a recognized business in connection with which a major investment project is carried out or is in the process of being carried out; and

(d)  was not, before its acquisition, used for any purpose or acquired to be used or leased for any purpose whatever;

“recognized business” has the meaning assigned by the first paragraph of section 737.18.14;

“resource region” means

(a)  one of the following administrative regions described in the Décret concernant la révision des limites des régions administratives du Québec (R.R.Q., c. D-11, r. 1):

i.  administrative region 01 Bas-Saint-Laurent,

ii.  administrative region 02 Saguenay-Lac-Saint-Jean,

iii.  administrative region 04 Mauricie,

iv.  administrative region 08 Abitibi-Témiscamingue,

v.  administrative region 09 Côte-Nord,

vi.  administrative region 10 Nord-du-Québec, or

vii.  administrative region 11 Gaspésie-Îles-de-la-Madeleine; or

(b)  one of the following regional county municipalities:

i.  Municipalité régionale de comté d’Antoine-Labelle,

ii.  Municipalité régionale de comté de La Vallée-de-la-Gatineau, or

iii.  Municipalité régionale de comté de Pontiac;

“specified member” of a corporation that is a cooperative, in a taxation year, means a member having, directly or indirectly, at any time in the year, at least 10% of the votes at a meeting of the members of the cooperative;

“total taxes” of a corporation for a taxation year means the aggregate of its tax payable under this Part for the year and of its tax payable under Parts IV, IV.1, VI and VI.1 for the year;

“unused portion of the tax credit” of a corporation for a taxation year means the amount by which the total amount that the corporation would be deemed to have paid to the Minister for that year under the first paragraph of sections 1029.8.36.166.43 and 1029.8.36.166.44 if no reference were made to the second paragraph of those sections, exceeds the corporation’s maximum tax credit amount for the year.

For the purposes of the definition of “eligible expenses” in the first paragraph, the expenses that are included, at the end of a taxation year or fiscal period, in the capital cost of a property do not include the expenses so included under section 180 or 182.

For the purposes of the definitions of “aluminum producing corporation” and “oil refining corporation” in the first paragraph, the rules set out in subparagraphs b and c of the second paragraph of section 1029.8.36.166.41 apply for the purpose of determining whether a corporation is associated with a partnership or trust at any time.

2009, c. 15, s. 303; 2010, c. 5, s. 159.

2010-03-01

1029.8.36.166.40. In this division,

“aluminum producing corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an aluminum producing business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“associated group” in a taxation year has the meaning assigned by section 1029.8.36.166.41;

“eligible expenses” of a corporation for a particular taxation year or of a partnership for a particular fiscal period, in respect of a qualified property, means

(a)   for a corporation, the aggregate of the following expenses, except expenses incurred with a person with whom the corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the amount by which the expenses incurred by the corporation in the particular taxation year or a preceding taxation year to acquire the qualified property that are included, at the end of that year, in the capital cost of the property and that are paid on or before the day that is 18 months after the end of the taxation year in which they were incurred, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the corporation’s eligible expenses in respect of which the corporation would be deemed to have paid an amount to the Minister under section 1029.8.36.166.43 for a taxation year preceding the particular year if that section were read without reference to its second paragraph, and

ii.  the expenses incurred by the corporation to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular taxation year, if the expenses are paid more than 18 months after the end of the taxation year in which they were incurred; and

(b)  for a partnership, the aggregate of the following expenses, except expenses incurred with a corporation that is a member of the partnership or with a person with whom such a corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the amount by which the expenses incurred by the partnership in the particular fiscal period or a preceding fiscal period to acquire the qualified property that are included, at the end of that fiscal period, in the capital cost of the property and that are paid on or before the day that is 18 months after the end of the fiscal period in which they were incurred, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the partnership’s eligible expenses in respect of which a corporation that is a member of the partnership would be deemed to have paid an amount to the Minister under section 1029.8.36.166.44 for a taxation year preceding that in which the particular fiscal period ends if that section were read without reference to its second paragraph, and

ii.  the expenses incurred by the partnership to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular fiscal period, if the expenses are paid more than 18 months after the end of the fiscal period in which they were incurred;

“excluded corporation” for a taxation year means

(a)  a corporation that is exempt from tax for the year under Book VIII, other than an insurer referred to in paragraph k of section 998 that is not so exempt from tax on all of its taxable income for the year because of section 999.0.1;

(b)  a corporation that would be exempt from tax for the year under section 985, but for section 192;

(c)  an aluminum producing corporation for the year;

(d)  an oil refining corporation for the year; or

(e)  a corporation that was carrying on a recognized business, for the purposes of Division II.6.6.6.1, before 1 April 2008 and that has not made an election under section 1029.8.36.72.82.3.1 for the year or a preceding taxation year, or that is associated with such a corporation in the year;

“excluded partnership” for a fiscal period means a partnership that, at any time in the fiscal period after 13 March 2008, carries on an aluminum producing business or an oil refining business;

“limit relating to an unused portion” in respect of a corporation for a taxation year means the aggregate of its total taxes for the year and of the amount determined for the year in its respect under the second paragraph of section 1029.8.36.166.42;

“major investment project” has the meaning assigned by the first paragraph of section 737.18.14;

“maximum tax credit amount” of a corporation for a taxation year means the aggregate of the amount by which its total taxes for the year exceed the amount it is deemed to have paid to the Minister for the year under section 1029.8.36.166.46, and of the amount determined for the year in its respect under the first paragraph of section 1029.8.36.166.42;

“oil refining corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an oil refining business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“qualified corporation” for a taxation year means a corporation, other than an excluded corporation for the year, that, in the year, carries on a business in Québec and has an establishment in Québec;

“qualified partnership” for a fiscal period means a partnership, other than an excluded partnership for the fiscal period, that, in the fiscal period, carries on a business in Québec and has an establishment in Québec;

“qualified property” of a corporation or partnership means a prescribed property that is acquired by the corporation or partnership and that

(a)  is acquired after 13 March 2008 and before 1 January 2016, but is not a property acquired pursuant to an obligation in writing entered into before 14 March 2008 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 13 March 2008;

(b)  begins to be used within a reasonable time after being acquired;

(c)  is used solely in Québec and mainly in the course of carrying on a business, other than a recognized business in connection with which a major investment project is carried out or is in the process of being carried out; and

(d)  was not, before its acquisition, used for any purpose or acquired to be used or leased for any purpose whatever;

“recognized business” has the meaning assigned by the first paragraph of section 737.18.14;

“resource region” means

(a)  one of the following administrative regions described in the Décret concernant la révision des limites des régions administratives du Québec (R.R.Q., c. D-11, r. 1):

i.  administrative region 01 Bas-Saint-Laurent,

ii.  administrative region 02 Saguenay-Lac-Saint-Jean,

iii.  administrative region 04 Mauricie,

iv.  administrative region 08 Abitibi-Témiscamingue,

v.  administrative region 09 Côte-Nord,

vi.  administrative region 10 Nord-du-Québec, or

vii.  administrative region 11 Gaspésie-Îles-de-la-Madeleine; or

(b)  one of the following regional county municipalities:

i.  Municipalité régionale de comté d’Antoine-Labelle,

ii.  Municipalité régionale de comté de La Vallée-de-la-Gatineau, or

iii.  Municipalité régionale de comté de Pontiac;

“specified member” of a corporation that is a cooperative, in a taxation year, means a member having, directly or indirectly, at any time in the year, at least 10% of the votes at a meeting of the members of the cooperative;

“total taxes” of a corporation for a taxation year means the aggregate of its tax payable under this Part for the year and of its tax payable under Parts IV, IV.1, VI and VI.1 for the year;

“unused portion of the tax credit” of a corporation for a taxation year means the amount by which the total amount that the corporation would be deemed to have paid to the Minister for that year under the first paragraph of sections 1029.8.36.166.43 and 1029.8.36.166.44 if no reference were made to the second paragraph of those sections, exceeds the corporation’s maximum tax credit amount for the year.

For the purposes of the definition of “eligible expenses” in the first paragraph, the expenses that are included, at the end of a taxation year or fiscal period, in the capital cost of a property do not include the expenses so included under section 180 or 182.

For the purposes of the definitions of “aluminum producing corporation” and “oil refining corporation” in the first paragraph, the rules set out in subparagraphs b and c of the second paragraph of section 1029.8.36.166.41 apply for the purpose of determining whether a corporation is associated with a partnership or trust at any time.

2009, c. 15, s. 303.

2009-06-04

1029.8.36.166.40. In this division,

“aluminum producing corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an aluminum producing business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“associated group” in a taxation year has the meaning assigned by section 1029.8.36.166.41;

“eligible expenses” of a corporation for a particular taxation year or of a partnership for a particular fiscal period, in respect of a qualified property, means

(a)   for a corporation, the aggregate of the following expenses, except expenses incurred with a person with whom the corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the amount by which the expenses incurred by the corporation in the particular taxation year or a preceding taxation year to acquire the qualified property that are included, at the end of that year, in the capital cost of the property and that are paid on or before the day that is 18 months after the end of the taxation year in which they were incurred, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the corporation’s eligible expenses in respect of which the corporation would be deemed to have paid an amount to the Minister under section 1029.8.36.166.43 for a taxation year preceding the particular year if that section were read without reference to its second paragraph, and

ii.  the expenses incurred by the corporation to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular taxation year, if the expenses are paid more than 18 months after the end of the taxation year in which they were incurred; and

(b)  for a partnership, the aggregate of the following expenses, except expenses incurred with a corporation that is a member of the partnership or with a person with whom such a corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the corporation, is not dealing at arm’s length:

i.  the amount by which the expenses incurred by the partnership in the particular fiscal period or a preceding fiscal period to acquire the qualified property that are included, at the end of that fiscal period, in the capital cost of the property and that are paid on or before the day that is 18 months after the end of the fiscal period in which they were incurred, exceeds the portion of those expenses that was taken into account for the purpose of determining the amount of the partnership’s eligible expenses in respect of which a corporation that is a member of the partnership would be deemed to have paid an amount to the Minister under section 1029.8.36.166.44 for a taxation year preceding that in which the particular fiscal period ends if that section were read without reference to its second paragraph, and

ii.  the expenses incurred by the partnership to acquire the qualified property that are included in the capital cost of the property and that are paid in the particular fiscal period, if the expenses are paid more than 18 months after the end of the fiscal period in which they were incurred;

“excluded corporation” for a taxation year means

(a)  a corporation that is exempt from tax for the year under Book VIII, other than an insurer referred to in paragraph k of section 998 that is not so exempt from tax on all of its taxable income for the year because of section 999.0.1;

(b)  a corporation that would be exempt from tax for the year under section 985, but for section 192;

(c)  an aluminum producing corporation for the year;

(d)  an oil refining corporation for the year; or

(e)  a corporation that was carrying on a recognized business, for the purposes of Division II.6.6.6.1, before 1 April 2008 and that has not made an election under section 1029.8.36.72.82.3.1 for the year or a preceding taxation year, or that is associated with such a corporation in the year;

“excluded partnership” for a fiscal period means a partnership that, at any time in the fiscal period after 13 March 2008, carries on an aluminum producing business or an oil refining business;

“limit relating to an unused portion” in respect of a corporation for a taxation year means the aggregate of its total taxes for the year and of the amount determined for the year in its respect under the second paragraph of section 1029.8.36.166.42;

“major investment project” has the meaning assigned by the first paragraph of section 737.18.14;

“maximum tax credit amount” of a corporation for a taxation year means the aggregate of the amount by which its total taxes for the year exceed the amount it is deemed to have paid to the Minister for the year under section 1029.8.36.166.46, and of the amount determined for the year in its respect under the first paragraph of section 1029.8.36.166.42;

“oil refining corporation” for a taxation year means a corporation that, at any time in the year after 13 March 2008, carries on an oil refining business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

“qualified corporation” for a taxation year means a corporation, other than an excluded corporation for the year, that, in the year, carries on a business in Québec and has an establishment in Québec;

“qualified partnership” for a fiscal period means a partnership, other than an excluded partnership for the fiscal period, that, in the fiscal period, carries on a business in Québec and has an establishment in Québec;

“qualified property” of a corporation or partnership means a prescribed property that is acquired by the corporation or partnership and that

(a)  is acquired after 13 March 2008 and before 1 January 2016, but is not a property acquired pursuant to an obligation in writing entered into before 14 March 2008 or the construction of which, if applicable, by or on behalf of the purchaser, had begun by 13 March 2008;

(b)  begins to be used within a reasonable time after being acquired;

(c)  is used solely in Québec and mainly in the course of carrying on a business, other than a recognized business in connection with which a major investment project is carried out or is in the process of being carried out; and

(d)  was not, before its acquisition, used for any purpose or acquired to be used or leased for any purpose whatever;

“recognized business” has the meaning assigned by the first paragraph of section 737.18.14;

“resource region” means

(a)  one of the following administrative regions described in Order in Council 2000-87 (1988, G.O. 2, 120, in French only) concerning the revision of the boundaries of the administrative regions of Québec, as amended:

i.  administrative region 01 Bas-Saint-Laurent,

ii.  administrative region 02 Saguenay-Lac-Saint-Jean,

iii.  administrative region 04 Mauricie,

iv.  administrative region 08 Abitibi-Témiscamingue,

v.  administrative region 09 Côte-Nord,

vi.  administrative region 10 Nord-du-Québec, or

vii.  administrative region 11 Gaspésie-Îles-de-la-Madeleine; or

(b)  one of the following regional county municipalities:

i.  Municipalité régionale de comté d’Antoine-Labelle,

ii.  Municipalité régionale de comté de La Vallée-de-la-Gatineau, or

iii.  Municipalité régionale de comté de Pontiac;

“specified member” of a corporation that is a cooperative, in a taxation year, means a member having, directly or indirectly, at any time in the year, at least 10% of the votes at a meeting of the members of the cooperative;

“total taxes” of a corporation for a taxation year means the aggregate of its tax payable under this Part for the year and of its tax payable under Parts IV, IV.1, VI and VI.1 for the year;

“unused portion of the tax credit” of a corporation for a taxation year means the amount by which the total amount that the corporation would be deemed to have paid to the Minister for that year under the first paragraph of sections 1029.8.36.166.43 and 1029.8.36.166.44 if no reference were made to the second paragraph of those sections, exceeds the corporation’s maximum tax credit amount for the year.

For the purposes of the definition of “eligible expenses” in the first paragraph, the expenses that are included, at the end of a taxation year or fiscal period, in the capital cost of a property do not include the expenses so included under section 180 or 182.

For the purposes of the definitions of “aluminum producing corporation” and “oil refining corporation” in the first paragraph, the rules set out in subparagraphs b and c of the second paragraph of section 1029.8.36.166.41 apply for the purpose of determining whether a corporation is associated with a partnership or trust at any time.

2009, c. 15, s. 303.