Expenditure limit determined	(10.2) For the purpose of subsection (10.1), a corporation's expenditure limit for a particular taxation year is the amount determined by the formula
	$4,000,000 - 10A
	where
	A is the greater of
	(a) $200,000, and
	(b) the total of the taxable income of the corporation for the taxation year preceding the particular year and the taxable incomes of all corporations with which it was associated in the particular year for their taxation years ending in the calendar year preceding the calendar year in which the taxpayer's particular year ended,
	unless the corporation is associated in the particular year with one or more other Canadian-controlled private corporations in which case, except as otherwise provided in this section, its expenditure limit for the particular year is nil.
Associated corporations	(10.3) If all of the Canadian-controlled private corporations that are associated with each other in a taxation year file with the Minister in prescribed form an agreement whereby, for the purpose of subsection (10.1), they allocate an amount to one or more of them for the year and the amount so allocated or the total of the amounts so allocated, as the case may be, does not exceed the amount determined for the year by the formula in subsection (10.2), the expenditure limit for the year of each of the corporations is the amount so allocated to it.
Failure to file agreement	(10.4) If any of the Canadian-controlled private corporations that are associated with each other in a taxation year fails to file with the Minister an agreement as contemplated by subsection (10.3) within 30 days after notice in writing by the Minister is forwarded to any of them that such an agreement is required for the purposes of this Part, the Minister shall, for the purpose of subsection (10.1), allocate an amount to one or more of them for the year, which amount or the total of which amounts, as the case may be, shall equal the amount determined for the year by the formula in subsection (10.2), and in any such case the expenditure limit for the year of each of the corporations is the amount so allocated to it.
	(11) Paragraphs 127(11.1)(b) and (c) of the Act are replaced by the following:
	(b) the capital cost to a taxpayer of a property shall be deemed to be the capital cost to the taxpayer of the property, determined without reference to subsections 13(7.1) and (7.4), less the amount of any government assistance or non-government assistance that can reasonably be considered to be in respect of, or for the acquisition of, the property and that, at the time of the filing of the taxpayer's return of income under this Part for the taxation year in which the property was acquired, the taxpayer has received, is entitled to receive or can reasonably be expected to receive;
	(c) the amount of a qualified expenditure (other than a prescribed proxy amount or an amount determined under paragraph (e)) made by a taxpayer shall be deemed to be the amount of the qualified expenditure, determined without reference to subsections 13(7.1) and (7.4), less the amount of any government assistance, non-government assistance or contract payment that can reasonably be considered to be in respect of the expenditure and that, at the time of the filing of the taxpayer's return of income under this Part for the taxation year in which the expenditure was made, the taxpayer has received, is entitled to receive or can reasonably be expected to receive;
	(12) Subsection 127(11.1) of the Act is amended by striking out the word ``and'' at the end of paragraph (c.1) and by adding the following after paragraph (d):
	(e) the amount of a qualified expenditure made by a taxpayer in the taxation year ending coincidentally with the end of the first period (within the meaning assigned in the definition ``first term shared-use-equipment'' in subsection (9)) or the second period (within the meaning assigned in the definition ``second term shared-use-equipment'' in subsection (9)) in respect of first term shared-use-equipment or second term shared-use-equipment, respectively, of the taxpayer shall be deemed to be 1/4 of the capital cost of the equipment that would be determined in accordance with paragraphs (a) and (b) if paragraph (b) were read as
	``(b) the capital cost to a taxpayer of a property shall be deemed to be the capital cost to the taxpayer of the property, determined without reference to subsections 13(7.1) and (7.4), less the amount of any government assistance, non-government assistance or contract payment that can reasonably be considered to be in respect of, or for the acquisition of, the property and that, at the time of the filing of the return of income under this Part for the taxation year ending coincidentally with the first period, the taxpayer has received, is entitled to receive or can reasonably be expected to receive;''; and
	(f) the prescribed proxy amount of a taxpayer for a taxation year shall be deemed to be the prescribed proxy amount of the taxpayer for the taxation year less the amount of any government assistance, non-government assistance or contract payment that can reasonably be considered to be in respect of an expenditure described in subparagraph 37(8)(a)(ii), other than an expenditure described in clause (B) of that subparagraph, and that, at the time of the filing of the taxpayer's return of income under this Part for the taxation year in which the expenditure was made, the taxpayer has received, is entitled to receive or can reasonably be expected to receive.
	(13) Subsection 127(17) of the Act is repealed.
	(14) Subsections (1), (2), (10) and (13) apply to taxation years that begin after 1993.
	(15) Subsections (3), (5), (8) and (9) apply to property acquired after December 2, 1992.
	(16) Subsections (4), (6), (7), (11) and (12) apply to taxation years that end after December 2, 1992.
	16. (1) The definition ``refundable investment tax credit'' in subsection 127.1(2) of the Act is replaced by the following:
``refundable investment tax credit'' « crédit d'impôt à l'investisseme nt remboursable »	``refundable investment tax credit'' of a taxpayer for a taxation year means, in the case of a taxpayer who is
	(a) a qualifying corporation for the year,
	(b) an individual other than a trust, or
	(c) a trust each beneficiary of which is a person referred to in paragraph (a) or (b),
	an amount equal to 40% of the amount, if any, by which
	(d) the total of all amounts included in computing the taxpayer's investment tax credit at the end of the year
	(i) in respect of property (other than qualified small-business property) acquired, or a qualified expenditure (other than an expenditure in respect of which an amount is included under paragraph (f) in computing the taxpayer's refundable investment tax credit for the year) incurred, by the taxpayer in the year, or
	(ii) because of paragraph (b) of the definition ``investment tax credit'' in subsection 127(9) in respect of a property (other than qualified small-business property) acquired or a qualified expenditure (other than an expenditure in respect of which an amount is included under paragraph (f) in computing the taxpayer's refundable investment tax credit for the year) incurred
	exceeds
	(e) the total of
	(i) the portion of the total of all amounts deducted under subsection 127(5) for the year or a preceding taxation year (other than an amount deemed by subsection (3) to be so deducted for the year) that can reasonably be considered to be in respect of the total determined under paragraph (d), and
	(ii) the portion of the total of all amounts required by subsection 127(6) or (7) to be deducted in computing the taxpayer's investment tax credit at the end of the year that can reasonably be considered to be in respect of the total determined under paragraph (d),
	plus, where the taxpayer is a qualifying corporation (other than an excluded corporation) for the year, the amount, if any, by which
	(f) the total of
	(i) the portion of the amount required by subsection 127(10.1) to be added in computing the taxpayer's investment tax credit at the end of the year that is in respect of qualified expenditures (other than expenditures of a capital nature) incurred in the year, and
	(ii) all amounts determined under paragraph (a) of the definition ``investment tax credit'' in subsection 127(9) in respect of expenditures for which amounts are included in subparagraph (i)
	exceeds
	(g) the total of
	(i) the portion of the total of all amounts deducted by the taxpayer under subsection 127(5) for the year or a preceding taxation year (other than an amount deemed by subsection (3) to be so deducted for the year) that can reasonably be considered to be in respect of the total determined under paragraph (f), and
	(ii) the portion of the total of all amounts required by subsection 127(6) to be deducted in computing the taxpayer's investment tax credit at the end of the year that can reasonably be considered to be in respect of the total determined under paragraph (f).
	(2) Section 127.1 of the Act is amended by adding the following after subsection (2):
Addition to refundable investment tax credit	(2.01) In the case of a taxpayer that is a Canadian-controlled private corporation other than a qualifying corporation or an excluded corporation, the refundable investment tax credit of the taxpayer for a taxation year is 40% of the amount, if any, by which
	(a) the total of
	(i) the portion of the amount required by subsection 127(10.1) to be added in computing the taxpayer's investment tax credit at the end of the year that is in respect of qualified expenditures (other than expenditures of a current nature) incurred in the year, and
	(ii) all amounts determined under paragraph (a) of the definition ``investment tax credit'' in subsection 127(9) in respect of expenditures for which an amount is included in subparagraph (i)
	exceeds
	(b) the total of
	(i) the portion of the total of all amounts deducted by the taxpayer under subsection 127(5) for the year or a preceding taxation year (other than an amount deemed by subsection (3) to have been so deducted for the year) that can reasonably be considered to be in respect of the total determined under paragraph (a), and
	(ii) the portion of the total of all amounts required by subsection 127(6) to be deducted in computing the taxpayer's investment tax credit at the end of the year that can reasonably be considered to be in respect of the total determined under paragraph (a)
	plus the amount, if any, by which
	(c) the total of
	(i) the portion of the amount required by subsection 127(10.1) to be added in computing the taxpayer's investment tax credit at the end of the year that is in respect of qualified expenditures (other than expenditures of a capital nature) incurred in the year, and
	(ii) all amounts determined under paragraph (a) of the definition ``investment tax credit'' in subsection 127(9) in respect of expenditures for which an amount is included in subparagraph (i)
	exceeds
	(d) the total of
	(i) the portion of the total of all amounts deducted by the taxpayer under subsection 127(5) for the year or a preceding taxation year (other than an amount deemed by subsection (3) to have been so deducted for the year) that can reasonably be considered to be in respect of the total determined under paragraph (c), and
	(ii) the portion of the total of all amounts required by subsection 127(6) to be deducted in computing the taxpayer's investment tax credit at the end of the year that can reasonably be considered to be in respect of the total determined under paragraph (c).
	(3) Subsection (1) applies to taxation years that end after December 2, 1992.
	(4) Subsection (2) applies to taxation years that begin after 1993.
	17. (1) Subsection 127.4(1) of the Act is amended by adding the following in alphabetical order:
``qualifying trust'' « fiducie admissible »	``qualifying trust'' for an individual in respect of a share means a trust governed by a registered retirement savings plan where
	(a) the individual makes contributions to the trust and those contributions (and no other funds) can reasonably be considered to have been used by the trust to acquire or subscribe for the share, and
	(b) the annuitant under the plan is the individual or a spouse of the individual;
	(2) Subsections 127.4(3) and (4) of the Act are replaced by the following:
Computation of tax credit	(3) The labour-sponsored funds tax credit of an individual for a taxation year is the total of all amounts, in respect of an approved share acquired or irrevocably subscribed and paid for by the individual (or by a qualifying trust for the individual in respect of the share) in the year or within 60 days after the end of the year (to the extent that it was not deducted in computing the individual's tax payable under this Part for the preceding taxation year), each of which is
	(a) where a tax credit is provided under the law of a province in respect of the acquisition of, or subscription for, the share by the individual or the trust, and the share is not a share of a registered labour-sponsored venture capital corporation (within the meaning assigned by section 204.8), the amount, if any, by which
	(i) 40% of the net cost to the individual or the trust of the share
	exceeds
	(ii) the amount of the tax credit so provided; and
	(b) in any other case, where the information return described in paragraph 204.81(6)(c) in respect of the share was filed with the individual's return of income under this Part for the year (other than a return of income filed under subsection 70(2), paragraph 104(23)(d) or 128(2)(e) or subsection 150(4)), 20% of the net cost to the individual or the trust of the share.
Idem	(4) Notwithstanding subsection (3), where paragraph (3)(a) applies in computing an individual's labour-sponsored funds tax credit for a taxation year in respect of an approved share and the amount of the tax credit referred to in that paragraph is less than 20% of the consideration for which the share was issued, the amount determined under that paragraph for the year in respect of the share shall be deemed to be nil.
	(3) Subsections (1) and (2) apply to the 1992 and subsequent taxation years.
	18. (1) Paragraph 128(2)(d) of the Act is replaced by the following:
	(d) except for the purposes of subsections 146(1) and 146.01(4), (9) and (10) and Part X.1, a taxation year of the individual shall be deemed to have begun on the day in the calendar year on which the individual became a bankrupt and the individual's taxation year that would otherwise have ended on the last day of that calendar year shall be deemed to have ended on the day immediately before the day the individual became a bankrupt;
	(2) Subsection (1) applies to the 1993 and subsequent taxation years.
	19. (1) The definition ``eligible amount'' in subsection 146.01(1) of the Act is replaced by the following:
``eligible amount'' « montant admissible »	``eligible amount'' in respect of an individual means an amount received at a particular time by the individual as a benefit out of or under a registered retirement savings plan where
	(a) the amount is received after February 25, 1992 and before March 2, 1994 pursuant to the written request of the individual in prescribed form in which the individual sets out the location of a qualifying home that the individual has begun, or intends not later than one year after its acquisition by the individual to begin, using as a principal place of residence,
	(b) the individual is resident in Canada at the particular time and entered into an agreement in writing before the particular time for the acquisition of the qualifying home or with respect to its construction,
	(c) the individual acquires the qualifying home (or replacement property for the qualifying home) after February 25, 1992 and before the completion date in respect of the amount,
	(d) neither the individual nor the individual's spouse acquired the qualifying home more than 30 days before the particular time,
	(e) unless the individual acquired the qualifying home before the particular time, the individual is resident in Canada throughout the period beginning immediately after the particular time and ending at the earliest of any time at which the individual acquired the qualifying home or any replacement property for the qualifying home,
	(f) the total of the amount and all eligible amounts received by the individual at or before the particular time does not exceed $20,000, and
	(g) if the particular time is after March 1, 1993, neither the individual, nor another individual who was, at any time after February 25, 1992 and before the particular time, a spouse of the individual, received an eligible amount before March 2, 1993;