This enactment amends the Income Tax Act to establish a tax credit for the capture and utilization or storage of certain greenhouse gases.

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

Definitions

125.‍11 (1) The following definitions apply in this section.

greenhouse gas means carbon monoxide and carbon dioxide.‍ (gaz à effet de serre)

qualifying corporation means a corporation that is engaged primarily in the business of capturing, utilizing or storing greenhouse gas.‍ (société admissible)

storage project means a geological site in Canada that is

• (a) a deep saline aquifer into which greenhouse gas is injected for the sole purpose of storage; or

• (b) a depleted oil reservoir into which greenhouse gas is injected for the purpose of enhanced oil recovery.‍ (projet de stockage)

utilized means, in respect of a greenhouse gas

• (a) its fixation through photosynthesis or chemosynthesis, including by growth of algae or bacteria;

• (b) its conversion into a material or chemical component in which the gas is securely stored; or

• (c) its use for any other purpose for which a commercial market exists.‍ (valorisation)

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Capture, transportation and storage

(2) The greenhouse gas stored for the purposes of the storage project must be captured, transported and stored in accordance with the laws of Canada or a province or the laws of the United States or any of its states.

Tax credit

(3) For the purpose of computing the tax payable under this Part by a qualifying corporation for a taxation year, there may be deducted the amount equal to the product obtained by multiplying the number equal to the quantity of greenhouse gas, calculated in tonnes, captured and utilized or captured and stored permanently in a storage project, by the qualifying corporation during a taxation year by the amount set out in column 2 of Schedule 4 to the Greenhouse Gas Pollution Pricing Act for the calendar year in which the taxation year ends.

Division of credit

(4) In the case where the greenhouse gas was captured by one qualifying corporation and utilized or stored permanently in a storage project by another one, the Minister may, on request from the qualifying corporation that captured the greenhouse gas, divide the tax credit between the qualifying corporations if the conditions determined by the Minister are met.