Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to implement certain provisions of the budget tabled in Parliament on April 16, 2024”.

Part 1 implements certain measures in respect of the Income Tax Act and the Income Tax Regulations by

Part 2 enacts the Global Minimum Tax Act, a regime based on the rules of the Organisation for Economic Co-operation and Development (OECD). The global minimum tax regime will ensure that large multinational corporations are subject to a minimum effective tax rate of 15% on their profits wherever they do business. It sets out rules for the purposes of establishing liability for the tax and also sets out applicable reporting and filing requirements. To promote compliance with its provisions, that Act includes modern administration and enforcement provisions generally aligned with those found in other taxation statutes. Finally, this Part also makes related and consequential amendments to other texts to ensure proper implementation of the tax and cohesive and efficient administration by the Canada Revenue Agency.

Part 3 amends the Excise Tax Act, the Excise Act, the Excise Act, 2001, the Underused Housing Tax Act, the Greenhouse Gas Pollution Pricing Act and other related texts in order to implement certain measures.

Division 1 of Part 3 amends the Excise Tax Act by repealing the temporary relief for supplies of certain face masks or respirators and certain face shields from the Goods and Services Tax/Harmonized Sales Tax.

Division 2 of Part 3 amends the Excise Act, the Excise Act, 2001 and other related texts in order to implement changes to

Division 3 of Part 3 amends the Underused Housing Tax Act and the Underused Housing Tax Regulations by, among other things,

Division 4 of Part 3 amends the Greenhouse Gas Pollution Pricing Act by providing authority, in certain circumstances, for the sharing of certain information amongst federal officials and for the public disclosure of certain information by the Minister of National Revenue.

Part 4 enacts and amends several Acts in order to implement various measures.

Division 1 of Part 4 amends the Budget Implementation Act, 2022, No. 1 to delay the repeal of the Prohibition on the Purchase of Residential Property by Non-Canadians Act for two years.

Division 2 of Part 4 amends the National Housing Act to increase the in-force limits for guarantees issued by the Canada Mortgage and Housing Corporation (CMHC) in respect of mortgage-backed securities and Canada Mortgage Bonds and for mortgage default insurance provided by CMHC from the temporary $750 billion to the permanent $800 billion. It also amends the Borrowing Authority Act to avoid the double counting of liabilities related to Canada Mortgage Bonds that are guaranteed by the CMHC and have been purchased by the Minister of Finance, on behalf of the Government of Canada, in the calculation of the maximum amount of certain borrowings under that Act.

Division 3 of Part 4 authorizes the making of payments to the provinces for the fiscal year beginning on April 1, 2024 respecting a national program for providing food in schools.

Division 4 of Part 4 amends the Canada Student Loans Act and the Canada Student Financial Assistance Act to expand eligibility for student loan forgiveness to early childhood educators, dentists, dental hygienists, pharmacists, midwives, teachers, social workers, psychologists, personal support workers and physiotherapists.

Division 5 of Part 4 amends the Canada Education Savings Act to, among other things,

It also makes consequential amendments to the Income Tax Act.

Division 6 of Part 4 amends the Bretton Woods and Related Agreements Act to increase the maximum financial assistance that may be provided in respect of foreign states.

Division 7 of Part 4 amends the Bretton Woods and Related Agreements Act to increase the amount of the payment that the Minister of Finance may provide to the International Monetary Fund in respect of Canada’s subscriptions. It also amends the International Development (Financial Institutions) Assistance Act and the European Bank for Reconstruction and Development Agreement Act to provide for new financial instruments that the Minister of Foreign Affairs or the Minister of Finance, as the case may be, may use to provide financial assistance to the institutions referred to in those Acts.

Division 8 of Part 4 amends the International Financial Assistance Act to, among other things, provide that foreign exchange losses in relation to programs referred to in that Act must be charged to the Consolidated Revenue Fund and provide for the making of payments to Development Finance Institute Canada (DFIC) Inc. in relation to programs referred to in that Act out of the Consolidated Revenue Fund.

Division 9 of Part 4 amends the Export Development Act to lower the limit for total liabilities and obligations referred to in subsection 24(1) of that Act from $115 billion to $100 billion.

Division 10 of Part 4 amends the Financial Administration Act to broaden the application of subsection 85(2) of that Act to other Crown corporations.

Division 11 of Part 4 amends the Financial Administration Act to require certain banks and other financial institutions to disclose prescribed information for federal payments accepted for deposit.

Division 12 of Part 4 amends the Federal-Provincial Fiscal Arrangements Act to enhance the Canada Health Transfer for qualifying provinces and territories.

Division 13 of Part 4 amends the Pension Benefits Standards Act, 1985 to require that the Superintendent of Financial Institutions publish certain information relating to pension plan investments. It also amends the Pooled Registered Pension Plans Act to require that plan administrators provide specified information by written notice to certain persons when they become members of a pooled registered pension plan.

Division 14 of Part 4 amends the Canada Pension Plan to, among other things,

It also makes a consequential amendment to the Canada Pension Plan Regulations.

Division 15 of Part 4 amends the Public Sector Pension Investment Board Act to provide for the payment of certain amounts into the Consolidated Revenue Fund by the Public Sector Pension Investment Board.

Division 16 of Part 4 enacts the Consumer-Driven Banking Act, which establishes a consumer-driven framework for individuals and small businesses to safely and securely share their data with the participating entities of their choice.

It also makes related amendments to the Financial Consumer Agency of Canada Act to establish the position of Senior Deputy Commissioner for Consumer-Driven Banking who is responsible for consumer-driven banking matters and to provide for, among other things, the supervision of participating entities.

Division 17 of Part 4 amends the Bank Act to, among other things, clarify the definitions “deposit-type instrument” and “principal-protected note”.

Division 18 of Part 4 amends the Office of the Superintendent of Financial Institutions Act to increase to $100,000,000 the maximum amount that expenditures made out of the Consolidated Revenue Fund to defray the expenses arising out of the operations of the Office may exceed the Office’s total assessments and revenues.

Division 19 of Part 4 amends the Bank of Canada Act to clarify that the Bank of Canada may enter into repurchase, reverse repurchase and buy-sellback agreements.

Division 20 of Part 4 amends the Canada Business Corporations Act to

Division 21 of Part 4 amends Parts I to III of the Canada Labour Code to, among other things,

Finally, it also includes transitional provisions.

Division 22 of Part 4 amends the Canada Labour Code to, among other things, set out certain employer obligations relating to policies respecting work-related communication and clarify certain employee rights and employer obligations relating to terminations of employment. It also includes transitional provisions.

Division 23 of Part 4 amends the Employment Insurance Act to extend, until October 24, 2026, the duration of the measure that increases the maximum number of weeks for which benefits may be paid in a benefit period to certain seasonal workers.

Division 24 of Part 4 amends section 61 of An Act for the Substantive Equality of Canada’s Official Languages in order to add a reference to subsections 18(1.‍1) and (1.‍2) of the Use of French in Federally Regulated Private Businesses Act in subsection 19(1) of that Act, which An Act for the Substantive Equality of Canada’s Official Languages enacts.

Division 25 of Part 4 authorizes a corporation that is to be incorporated as a wholly owned subsidiary of the Canada Development Investment Corporation to provide loan guarantees as part of an Indigenous loan guarantee program and authorizes the payment out of the Consolidated Revenue Fund by the Minister of Finance of amounts that are required in respect of those guarantees.

Division 26 of Part 4 authorizes the payment of up to $1.‍3 million to entities or individuals involved in the government’s engagement in a pilot project for the creation of a Red Dress Alert.

Division 27 of Part 4 provides that the subsidiary of VIA Rail Canada Inc. incorporated with the corporate name VIA HFR - VIA TGF Inc. is, as of the date of its incorporation, an agent of His Majesty in right of Canada and may enter into contracts, agreements and other arrangements with His Majesty as though it were not such an agent.

Division 28 of Part 4 amends the Impact Assessment Act, in response to the majority opinion of the Supreme Court of Canada on the constitutionality of that Act, to, among other things,

Finally, it also includes transitional provisions.

Division 29 of Part 4 amends the Judges Act to increase the number of salaries authorized for judges of superior courts other than appeal courts. It also reduces in a corresponding manner the number of salaries authorized for judges of provincial unified family courts.

Division 30 of Part 4 amends the Tax Court of Canada Act to provide that, if a party to a proceeding under the general procedure of the Tax Court of Canada is not an individual, that party must be represented by counsel, except under special circumstances.

Division 31 of Part 4 amends the Food and Drugs Act to, among other things, authorize the Minister of Health to

Finally, it also includes a transitional provision.

Division 32 of Part 4 amends the Tobacco and Vaping Products Act to authorize the provision of customs information to the Minister responsible for that Act for the purpose of the administration and enforcement of that Act and to authorize that Minister to disclose information to other federal ministers for certain purposes.

Division 33 of Part 4 amends the Criminal Code to broaden the criminal interest rate offence to prohibit a person from offering to enter into an agreement or arrangement to receive interest at a criminal rate and from advertising an offer to enter into an agreement or arrangement that provides for the receipt of interest at a criminal rate. It also repeals the provision that requires the consent of the Attorney General prior to commencing proceedings related to the offence.

Division 34 of Part 4 contains measures that are related to money laundering, terrorist financing and sanctions evasion and other measures.

Subdivision A of Division 34 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to, among other things,

(a) permit information sharing between reporting entities for the purpose of detecting and deterring money laundering, terrorist financing and sanctions evasion;

(b) authorize, subject to certain conditions, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) to disclose certain information to provincial and territorial civil forfeiture offices and to the Department of Citizenship and Immigration;

(c) authorize FINTRAC to publicize additional information pertaining to violations of that Act; and

(d) extend the application of that Act to cheque cashing businesses.

It also makes consequential amendments to the Personal Information Protection and Electronic Documents Act and the Cross-border Currency and Monetary Instruments Reporting Regulations.

Subdivision B of Division 34 amends the Income Tax Act and the Excise Tax Act to allow provincial or superior court judges, a judge of a superior court of criminal jurisdiction or a judge as defined in section 552 of the Criminal Code to grant on application by a Canada Revenue Agency official the authorization to use device or investigative technique, or procedure or otherwise do any thing provided in a warrant, for purposes of tax investigations.

Subdivision C of Division 34 amends the Criminal Code to provide for an order to keep an account open or active and for a production order to require the production of documents or data that are in a person’s possession or control on dates specified in an order that fall within the 60-day period after the day on which it is made.

Division 35 of Part 4 amends the Criminal Code to, among other things,

It also makes consequential amendments to other Acts.

Division 36 of Part 4 amends the Radiocommunication Act to, among other things, prohibit the manufacture, import, distribution, lease, offer for sale, sale or possession of certain devices specified by the Minister of Industry. It also amends that Act to establish as an offence or a violation the contravention of that prohibition.

Division 37 of Part 4 amends the Telecommunications Act to, among other things, require telecommunications service providers to provide their subscribers with a self-service mechanism that allows them to cancel their contract for telecommunications services or modify their telecommunications service plan and to inform those subscribers before the expiry of their fixed-term contract, as well as in other specified circumstances, of other service plans that those providers offer. It also amends that Act to prohibit the charging of certain fees.

Division 38 of Part 4 amends the Corrections and Conditional Release Act to, among other things,

It also amends the Immigration and Refugee Protection Act to define the term “immigrant station”, to provide that an area of a penitentiary may be an immigrant station only if it is designated under the Corrections and Conditional Release Act and to set out the circumstances under which a person detained under that Act may be detained in a designated immigrant station.

Finally, it provides for the repeal of those amendments on a specified date and includes a transitional provision.

Division 39 of Part 4 contains measures related to public debt and the borrowing of money.

Subdivision A of Division 39 amends the Financial Administration Act to clarify that certain regulations and directions do not apply to contracts related to the borrowing of money entered into by the Minister of Finance.

Subdivision B of Division 39 amends the Borrowing Authority Act to increase the maximum amount of certain borrowings.

Division 40 of Part 4 amends the Trust and Loan Companies Act, the Bank Act and the Insurance Companies Act to require certain financial institutions to make available information respecting diversity among directors and members of senior management.

Division 41 of Part 4 amends the Trust and Loan Companies Act, the Bank Act and the Insurance Companies Act to extend the period during which federal financial institutions governed by those Acts may carry on business.

Division 42 of Part 4 amends the Federal Courts Act to provide that the Federal Court has jurisdiction to hear applications for judicial review of decisions of the Social Security Tribunal on the extension of time to make a request for review or reconsideration under the Canada Disability Benefit Act. It also amends the Tax Court of Canada Act and the Department of Employment and Social Development Act to, among other things, provide the Tribunal with jurisdiction to hear appeals of decisions made under the Canada Disability Benefit Act and require that matters related to income raised in those appeals be referred to the Tax Court of Canada.

Division 43 of Part 4 amends the Controlled Drugs and Substances Act to repeal provisions related to the ministerial power to exempt supervised consumption sites from the application of that Act. It also amends that Act to allow for the making of regulations respecting authorizations for supervised consumption and drug checking services and includes transitional provisions.

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

Non-arm’s length relationship with trusts

(1.‍11) For the purposes of this section, a mutual fund trust is deemed not to deal at arm’s length with a corporation only if

• (a) the trust controls the corporation; or

• (b) the corporation holds securities that give the corporation not less than 50% of the votes that could be cast at a meeting of the unitholders of the trust.

Disposition of newly acquired security

(1.‍31) Where a taxpayer acquires at a particular time a particular security under an agreement referred to in subsection (1) — or acquires the particular security as consideration for the disposition of rights under the agreement — and, on a day that is no later than 30 days after the day that includes the particular time, the taxpayer disposes of a security that is identical to the particular security, the particular security is deemed to be the security that is so disposed of if

• (vi) des dépenses qui ne seraient pas, en vertu de l’alinéa 18(1)l), déductibles dans le calcul du revenu du contribuable pour l’année, si son emploi consistait en une entreprise exploitée par lui;

• les sommes qu’il a ainsi déboursées au cours de l’année, dans la mesure où il n’a pas été remboursé et n’a pas le droit d’être remboursé à cet égard;

• Cotisations et autres dépenses liées à l’exercice de fonctions

  i) dans la mesure où il n’a pas été remboursé et n’a pas le droit d’être remboursé à cet égard, les sommes payées par le contribuable au cours de l’année, ou les sommes payées pour son compte au cours de l’année si elles sont à inclure dans son revenu pour l’année, au titre :

• Investment tax credit

  (t) the amount deducted under subsection 127(5) or (6) or 127.‍48(3) in respect of a property acquired or an expenditure made in a preceding taxation year in computing the taxpayer’s tax payable for a preceding taxation year to the extent that it was not included in computing the taxpayer’s income for a preceding taxation year under this paragraph or is not included in an amount determined under paragraph 13(7.‍1)‍(e) or 37(1)‍(e), subparagraph 53(2)‍(c)‍(vi) or (viii.‍1) or (h)‍(ii) or for I in the definition undepreciated capital cost in subsection 13(21) or L in the definition cumulative Canadian exploration expense in subsection 66.‍1(6);

• Investment tax credit

  (t) the amount deducted under subsection 127(5) or (6), 127.‍48(3) or 127.‍49(6) in respect of a property acquired or an expenditure made in a preceding taxation year in computing the taxpayer’s tax payable for a preceding taxation year to the extent that it was not included in computing the taxpayer’s income for a preceding taxation year under this paragraph or is not included in an amount determined under paragraph 13(7.‍1)‍(e) or 37(1)‍(e), subparagraph 53(2)‍(c)‍(vi), (viii.‍1) or (viii.‍2) or (h)‍(ii) or for I in the definition undepreciated capital cost in subsection 13(21) or L in the definition cumulative Canadian exploration expense in subsection 66.‍1(6);

• (ix) was not received by the taxpayer as an excluded loan;

excluded loan means a loan, other than a forgivable loan, evidenced in writing

• (a) that is from a payer that is

  • (i) a government, municipality or other public authority in Canada, or

  • (ii) a person resident in Canada or Canadian partnership, if it is reasonable to conclude that the payer would not have made the loan but for the direct or indirect receipt by the payer of amounts from a government, municipality or other public authority in Canada;

• (b) for which, at the time the loan was made, bona fide arrangements were made for repayment of the loan within a reasonable time; and

• (c) the funds from which were used for the purpose of earning income from a business or property.‍ (prêt exclu)

COVID — time not counted

(4.‍01) For the purposes of subparagraph (4)‍(c)‍(ii), the period beginning on March 15, 2020 and ending on March 12, 2022 is not to be counted.

Deemed capital cost of certain property

(7.‍1) For the purposes of this Act, where section 80 applied to reduce the capital cost to a taxpayer of a depreciable property or a taxpayer deducted an amount under subsection 127(5) or (6) or 127.‍48(3) in respect of a depreciable property or received or is entitled to receive assistance from a government, municipality or other public authority in respect of, or for the acquisition of, depreciable property, whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or as any other form of assistance other than

Deemed capital cost of certain property

(7.‍1) For the purposes of this Act, where section 80 applied to reduce the capital cost to a taxpayer of a depreciable property or a taxpayer deducted an amount under subsection 127(5) or (6), 127.‍48(3) or 127.‍49(6) in respect of a depreciable property or received or is entitled to receive assistance from a government, municipality or other public authority in respect of, or for the acquisition of, depreciable property, whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or as any other form of assistance other than

• (b.‍2) an amount received as an excluded loan as defined in subsection 12(11),

• (e) where the property was acquired in a taxation year ending before the particular time, all amounts deducted under subsection 127(5) or (6) or 127.‍48(3) by the taxpayer for a taxation year ending before the particular time,

• (e) where the property was acquired in a taxation year ending before the particular time, all amounts deducted under subsection 127(5) or (6), 127.‍48(3) or 127.‍49(6) by the taxpayer for a taxation year ending before the particular time,

• (a) subject to paragraph (b), for the purposes of the description of A in the definition undepreciated capital cost in subsection (21) and of sections 127, 127.‍1 and 127.‍48, the property is deemed

• (a) subject to paragraph (b), for the purposes of the description of A in the definition undepreciated capital cost in subsection (21) and of sections 127, 127.‍1, 127.‍48 and 127.‍49, the property is deemed

• (C) a corporation referred to in section 6 of the Winding-up and Restructuring Act that was insolvent (within the meaning of that Act) and was a small business corporation at the time a winding-up order under that Act was made in respect of the corporation,

COVID — time not counted

(1.‍01) For the purposes of paragraphs (1)‍(c) and (d), the period beginning on March 15, 2020 and ending on March 12, 2022 is not to be counted.

• (ii) the corporation is a corporation referred to in section 6 of the Winding-up and Restructuring Act that is insolvent (within the meaning of that Act) and in respect of which a winding-up order under that Act has been made in the year, or

• (xiii) any amount required by subsection 127(30) or section 127.‍48 to be added to the taxpayer’s tax otherwise payable under this Part for a taxation year that ended before that time in respect of the interest in the partnership;

• (xiii) any amount required by subsection 127(30), section 127.‍48 or subsection 127.‍49(17) to be added to the taxpayer’s tax otherwise payable under this Part for a taxation year that ended before that time in respect of the interest in the partnership;

• (viii.‍1) an amount equal to that portion of all amounts deemed deducted under subsection 127.‍48(3) in computing the tax otherwise payable by the taxpayer under this Part for the taxpayer’s taxation years ending before that time that may reasonably be attributed to amounts added in computing the clean hydrogen tax credit (as defined in subsection 127.‍48(1)) of the taxpayer under subsection 127.‍48(12),

• (viii.‍2) an amount equal to that portion of all amounts deemed deducted under subsection 127.‍49(6) in computing the tax otherwise payable by the taxpayer under this Part for the taxpayer’s taxation years ending before that time that may reasonably be attributed to amounts added in computing the CTM investment tax credit (as defined in subsection 127.‍49(1)) of the taxpayer under subsection 127.‍49(8),

• (b) in the case of any other property that is included in the flow-through share class of property, the day that is the later of

• (iv) a benefit under Part I, VII.‍1, VIII or VIII.‍1 of the Employment Insurance Act,

• (C) to or under a registered retirement income fund under which the taxpayer is the annuitant, as defined in subsection 146.‍3(1), other than the portion thereof designated for a taxation year for the purposes of paragraph (l),

• Repayment of pension or benefits

  (n) any amount paid by the taxpayer in the year as a repayment (otherwise than because of Part VII of the Employment Insurance Act or section 8 of the Canada Recovery Benefits Act) of any of the following amounts to the extent that the amount was included in computing the taxpayer’s income, and not deducted in computing the taxpayer’s taxable income, for the year or for a preceding taxation year, namely,

• Amounts repaid in subsequent years

  (n.‍2) any amount paid by the taxpayer in a year (in this paragraph referred to as the “subsequent year”) that is after the year as a repayment of an amount that was included in computing the taxpayer’s income for the year under any of subparagraphs 56(1)‍(a)‍(i), (ii), (iv), (vi) or (vii) or paragraph 56(1)‍(r), to the extent that the amount paid

  • (i) exceeds the taxpayer’s taxable income for the subsequent year (determined without reference to paragraphs (n), (n.‍1) and (v.‍1)), and

  • (ii) is not deducted in computing the taxpayer’s taxable income for any other taxation year;

• EI benefit repayment

  (v.‍1) any benefit repayment payable by the taxpayer under Part VII of the Employment Insurance Act on or before April 30 of the following year, to the extent that the amount was not deductible in computing the taxpayer’s income for any preceding taxation year;

• (e) if a corporation fails to file the statement within the time required or fails in the statement filed to apply the excess fully to reduce one or more purported renunciations, the Minister may at any time reduce the total amount purported to be renounced by the corporation to one or more persons by the amount of the unapplied excess in which case, except for the purpose of Part XII.‍6, the amount purported to have been so renounced to a person is deemed, after that time, always to have been reduced by the portion of the unapplied excess allocated by the Minister in respect of that person.

• (I) the total of all amounts required by subsections 127(8) and 127.‍48(12) in respect of the partnership to be added in computing the investment tax credit or the clean hydrogen tax credit (as defined in subsection 127.‍48(1)) of the taxpayer in respect of the fiscal period, and

• (I) the total of all amounts required by subsections 127(8), 127.‍48(12) and 127.‍49(8) in respect of the partnership to be added in computing the investment tax credit, the clean hydrogen tax credit (as defined in subsection 127.‍48(1)) or the CTM investment tax credit (as defined in subsection 127.‍49(1)) of the taxpayer in respect of the fiscal period, and

Definitions

67.‍7 (1) The following definitions apply in this section.

non-compliant amount, for a taxation year, means the amount determined by the formula

non-compliant short-term rental means, at any time, a short-term rental that is located in a province or municipality that, at that time,

• (a) does not permit the operation of the short-term rental at the location of the short-term rental; or

• (b) requires registration, a licence or a permit to operate the short-term rental, and the short-term rental does not comply with all applicable registration, licensing and permit requirements.‍ (location à court terme non conforme)

residential property means all or any part of a house, apartment, condominium unit, cottage, mobile home, trailer, houseboat or other property, located in Canada, the use of which is permitted for residential purposes under applicable law.‍ (bien résidentiel)

short-term rental means a residential property that is rented or offered for rent for a period of less than 90 consecutive days.‍ (location à court terme)

Non-deductibility of expenses — short-term rental

(2) Notwithstanding any other provision of this Act, no amount is deductible in computing income in respect of a short-term rental for a taxation year, to the extent the amount is a non-compliant amount for the taxation year.

Deemed compliance

(3) For the purposes of subsection (1), a short-term rental of a person or partnership is deemed not to be a non-compliant short-term rental for the 2024 taxation year of the person or partnership if

• (a) the short-term rental is located in a province or municipality that requires registration, a licence or a permit to operate as a short-term rental; and

• (b) the short-term rental complies with all applicable registration, licensing and permit requirements by December 31, 2024.

Reassessments

(4) Notwithstanding subsections 152(4) to (5), the Minister may make any assessments, reassessments and additional assessments of tax, interest and penalties and any determinations and redeterminations that are necessary to give effect to subsection (2) for any taxation year.

• Ship of resident corporations

  (c.‍1) the income for the year of a corporation resident in Canada (if this Act were read without reference to subsection 250(4)) earned from international shipping, if that corporation satisfies the conditions set out in paragraphs 250(6)‍(a) and (b);

• (i) the taxpayer is a trust established under

• (F) the Settlement Agreement entered into by His Majesty in right of Canada, dated effective as of April 19, 2023, in respect of the class actions relating to the First Nations Child and Family Services, Jordan’s Principle and Trout Class, and

• Continuation of corporation

  (qq.‍1) for the purposes of section 127.‍48, the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation;

• Continuation of corporation

  (qq.‍1) for the purposes of sections 127.‍48 and 127.‍49, the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation;

• (e.‍31) for the purposes of section 127.‍48, at the end of any particular taxation year ending after the subsidiary was wound up, the parent is deemed to be the same corporation as, and a continuation of, the subsidiary;

• (e.‍31) for the purposes of sections 127.‍48 and 127.‍49, at the end of any particular taxation year ending after the subsidiary was wound up, the parent is deemed to be the same corporation as, and a continuation of, the subsidiary;

• (c) for the purpose of computing the income of the corporation for its taxation year that includes the particular time, paragraph 12(1)‍(t) shall be read as follows:

  • “(t) the amount deducted under subsection 127(5) or (6) or 127.‍48(3) in computing the taxpayer’s tax payable for the year or a preceding taxation year to the extent that it was not included under this paragraph in computing the taxpayer’s income for a preceding taxation year or is not included in an amount determined under paragraph 13(7.‍1)‍(e) or 37(1)‍(e) or subparagraph 53(2)‍(c)‍(vi) or (viii.‍1) or (h)‍(ii) or the amount determined for I in the definition undepreciated capital cost in subsection 13(21) or L in the definition cumulative Canadian exploration expense in subsection 66.‍1(6);”.

• (c) for the purpose of computing the income of the corporation for its taxation year that includes the particular time, paragraph 12(1)‍(t) shall be read as follows:

  • “(t) the amount deducted under subsection 127(5) or (6), 127.‍48(3) or 127.‍49(6) in computing the taxpayer’s tax payable for the year or a preceding taxation year to the extent that it was not included under this paragraph in computing the taxpayer’s income for a preceding taxation year or is not included in an amount determined under paragraph 13(7.‍1)‍(e) or 37(1)‍(e) or subparagraph 53(2)‍(c)‍(vi), (viii.‍1) or (viii.‍2) or (h)‍(ii) or the amount determined for I in the definition undepreciated capital cost in subsection 13(21) or L in the definition cumulative Canadian exploration expense in subsection 66.‍1(6);”.

Late designation — transitional ERDTOH

(14.‍2) If, as a consequence of the application of subparagraph (a)‍(iii) of the definition eligible refundable dividend tax on hand in subsection 129(4), in the opinion of the Minister, the circumstances are such that it would be just and equitable to permit a designation under subsection (14) to be made before the day that is six years after the day on which the designation was required to be made, the designation is deemed to have been made at the time the designation was required to be made.

• (D) by another foreign affiliate (referred to in this clause as the “second affiliate”) of the taxpayer — in respect of which the taxpayer has a qualifying interest throughout the year — to the extent that the amounts are paid or payable by the second affiliate, in respect of any particular period in the year, under a legal obligation to pay interest in respect of

  • (I) borrowed money used for the purpose of earning income from property, or

  • (II) an amount payable for property acquired for the purpose of gaining or producing income from property

• where

• (ii) the amount required by subsection 127(8) or 127.‍48(12) in respect of the partnership to be added in computing the investment tax credit or the clean hydrogen tax credit (as defined in subsection 127.‍48(1)) of the taxpayer for the taxation year,

• (ii) the amount required by subsection 127(8), 127.‍48(12) or 127.‍49(8) in respect of the partnership to be added in computing the investment tax credit, the clean hydrogen tax credit (as defined in subsection 127.‍48(1)) or the CTM investment tax credit (as defined in subsection 127.‍49(1)) of the taxpayer for the taxation year,

At-risk amount

(2.‍2) For the purposes of this section and sections 111, 127, 127.‍48 and 127.‍491, the at-risk amount of a taxpayer, in respect of a partnership of which the taxpayer is a limited partner, at any particular time is the amount, if any, by which the total of

At-risk amount

(2.‍2) For the purposes of this section and sections 111, 127, 127.‍48, 127.‍49 and 127.‍491, the at-risk amount of a taxpayer, in respect of a partnership of which the taxpayer is a limited partner, at any particular time is the amount, if any, by which the total of

Limited partner

(2.‍4) For the purposes of this section and sections 111, 127, 127.‍48 and 127.‍491, a taxpayer who is a member of a partnership at a particular time is a limited partner of the partnership at that time if the member’s partnership interest is not an exempt interest (within the meaning assigned by subsection (2.‍5)) at that time and if, at that time or within three years after that time,

Limited partner

(2.‍4) For the purposes of this section and sections 111, 127, 127.‍48, 127.‍49 and 127.‍491, a taxpayer who is a member of a partnership at a particular time is a limited partner of the partnership at that time if the member’s partnership interest is not an exempt interest (within the meaning assigned by subsection (2.‍5)) at that time and if, at that time or within three years after that time,

Interest rate hedging agreements

(2.‍1) For the purposes of subparagraph (2)‍(b)‍(iv), if an amount included in computing the income of a trust is derived from, or from the disposition of, an agreement that can reasonably be considered to have been made by the trust to reduce its risk from fluctuations in interest rates in respect of debt incurred by the trust to acquire or refinance property described in subparagraph (2)‍(b)‍(iii), the amount is deemed to be derived from that property.

• (A) the amount required by subsection 127(8) or 127.‍48(12) in respect of the partnership to be added in computing the investment tax credit or the clean hydrogen tax credit (as defined in subsection 127.‍48(1)) of the taxpayer for the taxation year,

• (A) the amount required by subsection 127(8), 127.‍48(12) or 127.‍49(8) in respect of the partnership to be added in computing the investment tax credit, the clean hydrogen tax credit (as defined in subsection 127.‍48(1)) or the CTM investment tax credit (as defined in subsection 127.‍49(1)) of the taxpayer for the taxation year,

• a) après enquête raisonnable, l’acheteur n’avait aucune raison de croire que la personne ne résidait pas au Canada;

• a) après enquête raisonnable, l’acheteur en vient à la conclusion que la personne non-résidente est, aux termes d’un traité fiscal que le Canada a conclu avec un pays donné, un résident de ce pays;

• a) le contribuable, sauf si le paragraphe (5.‍01) s’applique à l’acquisition ou si, après enquête raisonnable, le contribuable n’avait pas de raison de croire que la personne non-résidente n’était pas un résident du Canada, est tenu de payer, au titre de l’impôt prévu par la présente partie pour l’année pour le compte de la personne non-résidente, 50 % de l’excédent du montant visé au sous-alinéa (i) sur le montant visé au sous-alinéa (ii) :

Volunteer firefighter tax credit

(2) For the purpose of computing the tax payable under this Part for a taxation year by an individual who performs eligible volunteer firefighting services in the year, there may be deducted the amount determined by multiplying $6,000 by the appropriate percentage for the taxation year if the individual

Search and rescue volunteer tax credit

(2) For the purpose of computing the tax payable under this Part for a taxation year by an individual who performs eligible search and rescue volunteer services in the year, there may be deducted the amount determined by multiplying $6,000 by the appropriate percentage for the taxation year if the individual

• (v) to a fertility clinic, or donor bank, in Canada as a fee or other amount paid or payable, to obtain sperm, ova or embryos to enable the conception of a child by the individual, the individual’s spouse or common-law partner or a surrogate mother on behalf of the individual.

• (i) the amount that, but for this section, section 120 and subsection 120.‍4(2), would be the individual’s tax payable under this Part for the particular year if the individual were not entitled to any deduction under section 126

• (b) the amount that, if this Act were read without reference to section 120, would be the individual’s tax payable under this Part for the year if the individual were not entitled to any deduction under section 126, and

• (a) are not at that time cohabiting spouses or common-law partners of each other,

Death of child — qualified dependant

(9) For the purposes of this Subdivision (other than subsection (4)), a person is deemed to be a qualified dependant at the beginning of a month if

• (a) the person died in any of the six preceding months;

• (b) the person’s date of birth was not 18 years or more prior to the beginning of the month; and

• (c) the person was a qualified dependant immediately prior to their death.

Death of child — eligible individual

(10) For the purposes of this Subdivision (other than subsection (4)), a person is deemed to be an eligible individual in respect of a qualified dependant at the beginning of a month if

• (a) that qualified dependant is a qualified dependant at the beginning of that month because of subsection (9); and

• (b) the person was an eligible individual in respect of the qualified dependant immediately before the qualified dependant’s death.

Death of child

(11) For the purposes of paragraphs (a) and (b) of the description of E in subsection 122.‍61(1), if a person is deemed to be a qualified dependant at the beginning of a month because of subsection (9), the person is deemed to be the age at the beginning of that month that the person would have been at the beginning of that month had the person not died.

Death of child — disability tax credit

(12) For the purposes of paragraph (a) of the description of N in subsection 122.‍61(1), if a person died on or after July 1 of a particular taxation year and an amount could have been deducted in respect of that person under section 118.‍3 for that taxation year, an amount is deemed to be deductible under section 118.‍3 in respect of that person for the immediately following taxation year.

return of income, in respect of an eligible individual for a taxation year, means the eligible individual’s return of income (other than a return of income under subsection 70(2) or 104(23), paragraph 128(2)‍(e) or subsection 150(4)) that is required to be filed for the taxation year or that would be required to be filed if the eligible individual had tax payable under this Part for the taxation year.‍ (déclaration de revenu)

qualifying labour expenditure of a taxpayer for a taxation year in respect of an eligible newsroom employee, for a taxation year

• (a) that begins before 2023 and ends after 2022, means the lesser of

  • (i) the amount determined by the formula

    $85,000 × A ÷ 365

    where

    A

    is the lesser of 365 and the number of days in the taxation year that are after 2022 during which the taxpayer is a qualifying journalism organization, and

  • (ii) the amount determined by the formula

    A − B

    where

    A

    is the amount determined by the formula

    C × D ÷ E

    where

    C

    is the salary or wages payable by the taxpayer to the eligible newsroom employee in respect of the portion of the taxation year throughout which the taxpayer is a qualifying journalism organization,

    D

    is the number of days in the taxation year that are after 2022 during which the taxpayer is a qualifying journalism organization, and

    E

    is the number of days in the taxation year during which the taxpayer is a qualifying journalism organization, and

    B

    is the amount determined by the formula

    F × G ÷ H

    where

    F

    is the total of all amounts each of which is an amount of assistance that

    (A) the taxpayer has received, is entitled to receive or can reasonably be expected to receive, in respect of amounts described in C, and

    (B) has not been repaid before the end of the year pursuant to a legal obligation to do so,

    G

    is the number of days in the taxation year that are after 2022 during which the taxpayer is a qualifying journalism organization, and 

    H

    is the number of days in the taxation year during which the taxpayer is a qualifying journalism organization; and 

• (b) that begins after 2022, means the lesser of

  • (i) the amount determined by the formula

    $85,000 × A ÷ 365

    where

    A

    is the lesser of 365 and the number of days in the taxation year during which the taxpayer is a qualifying journalism organization, and

  • (ii) the amount determined by the formula

    A − B

    where

    A

    is the salary or wages payable by the taxpayer to the eligible newsroom employee in respect of the portion of the taxation year throughout which the taxpayer is a qualifying journalism organization, and

    B

    is the total of all amounts each of which is an amount of assistance that

    (A) the taxpayer has received, is entitled to receive or can reasonably be expected to receive, in respect of amounts described in A, and

    (B) has not been repaid before the end of the year pursuant to a legal obligation to do so. (dépense de main-d’œuvre admissible)

low threshold qualifying labour expenditure of a taxpayer for a taxation year that begins before 2023 and ends after 2022, in respect of an eligible newsroom employee, means the lesser of

• (a) the amount determined by the formula

  $55,000 × A ÷ 365

  where

  A

  is the lesser of 365 and the number of days in the taxation year that are before 2023 during which the taxpayer is a qualifying journalism organization, and

• (b) the amount determined by the formula

  A − B

  where

  A

  is the amount determined by the formula

  C × D ÷ E

  where

  C

  is the salary or wages payable by the taxpayer to the eligible newsroom employee in respect of the portion of the taxation year throughout which the taxpayer is a qualifying journalism organization,

  D

  is the number of days in the taxation year that are before 2023 during which the taxpayer is a qualifying journalism organization, and

  E

  is the number of days in the taxation year during which the taxpayer is a qualifying journalism organization, and

  B

  is the amount determined by the formula

  F × G ÷ H

  where

  F

  is the total of all amounts each of which is an amount of assistance that

  (i) the taxpayer has received, is entitled to receive or can reasonably be expected to receive, in respect of amounts described in C, and

  (ii) has not been repaid before the end of the year pursuant to a legal obligation to do so,

  G

  is the number of days in the taxation year that are before 2023 during which the taxpayer is a qualifying journalism organization, and 

  H

  is the number of days in the taxation year during which the taxpayer is a qualifying journalism organization.‍ (seuil inférieur de dépense de main-d’œuvre admissible)

Tax credit

(2) A taxpayer (other than a partnership) that is a qualifying journalism organization at any time in a taxation year and that files a prescribed form containing prescribed information with its return of income for the year is deemed to have, on its balance-due day for the year, paid on account of its tax payable under this Part for the year

• (a) if the year begins before 2023 and ends after 2022, an amount determined by the formula

  0.‍25 × A + 0.‍35 × B − C

  where

  A

  is the total of all amounts each of which is a low threshold qualifying labour expenditure of the qualifying journalism organization for the year in respect of an eligible newsroom employee,

  B

  is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the year in respect of an eligible newsroom employee, and

  C

  is the amount received by the taxpayer from the Aid to Publishers component of the Canada Periodical Fund in the year;

• (b) if the year begins after 2022 and ends before 2027, an amount determined by the formula

  0.‍35 × A − B

  where

  A

  is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the year in respect of an eligible newsroom employee, and

  B

  is the amount received by the taxpayer from the Aid to Publishers component of the Canada Periodical Fund in the year;

• (c) if the year begins before 2027 and ends after 2026, an amount determined by the formula

  0.‍35 × A + 0.‍25 × B − C

  where

  A

  is the amount determined by the formula

  D × E ÷ F

  where

  D

  is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the year in respect of an eligible newsroom employee,

  E

  is the number of days in the taxation year that are before 2027 during which the taxpayer is a qualifying journalism organization, and

  F

  is the number of days in the taxation year during which the taxpayer is a qualifying journalism organization,

  B

  is the amount determined by the formula

  G × H ÷ I

  where

  G

  is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the year in respect of an eligible newsroom employee,

  H

  is the number of days in the taxation year that are after 2026 during which the taxpayer is a qualifying journalism organization, and

  I

  is the number of days in the taxation year during which the taxpayer is a qualifying journalism organization, and

  C

  is the amount received by the taxpayer from the Aid to Publishers component of the Canada Periodical Fund in the year; and

• (d) if the year begins after 2026, an amount determined by the formula

  0.‍25 × A − B

  where

  A

  is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the year in respect of an eligible newsroom employee, and

  B

  is the amount received by the taxpayer from the Aid to Publishers component of the Canada Periodical Fund in the year.

Partnership — tax credit

(2.‍1) If a taxpayer (other than a partnership) is a member of a partnership (other than a specified member of the partnership) at the end of a fiscal period of the partnership that ends in a taxation year of the taxpayer, the partnership is a qualifying journalism organization at any time in that fiscal period and the partnership files an information return in prescribed form containing prescribed information for that fiscal period, then the taxpayer is deemed to have, on the taxpayer’s balance-due day for the taxation year, paid on account of the taxpayer’s tax payable under this Part for the taxation year

• (a) if the fiscal period begins before 2023 and ends after 2022, an amount determined by the formula

  (0.‍25 × A + 0.‍35 × B − C) × D ÷ E

  where

  A

  is the total of all amounts each of which is a low threshold qualifying labour expenditure of the qualifying journalism organization for the fiscal period in respect of an eligible newsroom employee,

  B

  is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the fiscal period in respect of an eligible newsroom employee,

  C

  is the amount received by the qualifying journalism organization from the Aid to Publishers component of the Canada Periodical Fund in the fiscal period,

  D

  is the specified proportion of the taxpayer for the fiscal period, and

  E

  is the total of all specified proportions of members of the partnership for the fiscal period, other than members that are partnerships or specified members of the partnership;

• (b) if the fiscal period begins after 2022 and ends before 2027, an amount determined by the formula

  (0.‍35 × A − B) × C ÷ D

  where

  A

  is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the fiscal period in respect of an eligible newsroom employee,

  B

  is the amount received by the qualifying journalism organization from the Aid to Publishers component of the Canada Periodical Fund in the fiscal period,

  C

  is the specified proportion of the taxpayer for the fiscal period, and

  D

  is the total of all specified proportions of members of the partnership for the fiscal period, other than members that are partnerships or specified members of the partnership;

• (c) if the fiscal period begins before 2027 and ends after 2026, an amount determined by the formula

  (0.‍35 × A + 0.‍25 × B − C) × D ÷ E

  where

  A

  is the amount determined by the formula

  F × G ÷ H

  where

  F

  is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the fiscal period in respect of an eligible newsroom employee,

  G

  is the number of days in the fiscal period that are before 2027 during which the partnership is a qualifying journalism organization, and

  H

  is the number of days in the fiscal period during which the partnership is a qualifying journalism organization,

  B

  is the amount determined by the formula

  I × J ÷ K

  where

  I

  is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the fiscal period in respect of an eligible newsroom employee,

  J

  is the number of days in the fiscal period that are after 2026 during which the partnership is a qualifying journalism organization, and

  K

  is the number of days in the fiscal period during which the partnership is a qualifying journalism organization,

  C

  is the amount received by the qualifying journalism organization from the Aid to Publishers component of the Canada Periodical Fund in the fiscal period,

  D

  is the specified proportion of the taxpayer for the fiscal period, and

  E

  is the total of all specified proportions of members of the partnership for the fiscal period, other than members that are partnerships or specified members of the partnership; and

• (d) if the fiscal period begins after 2026, an amount determined by the formula

  (0.‍25 × A − B) × C ÷ D

  where

  A

  is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the fiscal period in respect of an eligible newsroom employee,

  B

  is the amount received by the qualifying journalism organization from the Aid to Publishers component of the Canada Periodical Fund in the fiscal period,

  C

  is the specified proportion of the taxpayer for the fiscal period, and

  D

  is the total of all specified proportions of members of the partnership for the fiscal period, other than members that are partnerships or specified members of the partnership.

• (a) that is a Canadian exploration expense incurred by a corporation after March 2024 and before 2026 (including, for greater certainty, an expense that is deemed by subsection 66(12.‍66) to be incurred before 2026) in conducting mining exploration activity from or above the surface of the earth for the purpose of determining the existence, location, extent or quality of a mineral resource described in paragraph (a) or (d) of the definition mineral resource in subsection 248(1),

• (c) an amount in respect of which is renounced in accordance with subsection 66(12.‍6) by the corporation to the taxpayer (or a partnership of which the taxpayer is a member) under an agreement described in that subsection and made after March 2024 and before April 2025,

• (d) that is not an expense that was renounced under subsection 66(12.‍6) to the corporation (or a partnership of which the corporation is a member), unless that renunciation was under an agreement described in that subsection and made after March 2024 and before April 2025, and

government assistance means assistance from a government, municipality or other public authority whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or as any other form of assistance, other than as an excluded loan (as defined in subsection 12(11)) or as a deduction under subsection (5) or (6); (aide gouvernementale)

government assistance means assistance from a government, municipality or other public authority whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or as any other form of assistance, other than as an excluded loan (as defined in subsection 12(11)) or as a deduction under subsection (5) or (6) or a deemed payment on account of tax payable under subsection 127.‍48(2); (aide gouvernementale)

government assistance means assistance from a government, municipality or other public authority whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or as any other form of assistance, other than as an excluded loan (as defined in subsection 12(11)) or as a deduction under subsection (5) or (6) or a deemed payment on account of tax payable under subsection 127.‍48(2) or 127.‍49(2); (aide gouvernementale)

Definitions

127.‍421 (1) The following definitions apply in this section.

designated province means a province specified by the Minister of Finance for a calendar year.‍ (province déterminée)

fuel return specified, for a designated province for a calendar year, means the amount specified by the Minister of Finance for a person employed by a corporation for the designated province for the calendar year.‍ (montant lié aux carburants spécifié)

person employed, by a corporation for a calendar year, means a person who was at any time in the calendar year employed by the corporation and in respect of whom the corporation issued (or a payroll service provider issued on behalf of the corporation) a statement of remuneration paid.‍ (personne employée)

2023 business number means the business number of a corporation which the corporation used to make remittances for employees for the corporation’s last taxation year ending in 2023.‍ (numéro d’entreprise 2023)

Deemed amount 2019-2023

(2) A corporation that files, on or before July 15, 2024, a return of income for a taxation year ending in 2023 (other than a final return on dissolution) is deemed to have paid on a date specified by the Minister of Finance, on account of tax payable under this Part for that taxation year, the total of all amounts, each of which is an amount, for each designated province, for each calendar year that is 2019, 2020, 2021, 2022 and 2023, determined by the formula

Deemed amount after 2023

(3) A corporation that files a return of income for a particular taxation year ending in a calendar year after 2023 (other than a final return on dissolution) is, if the return is filed on or before July 15 of the following calendar year, deemed to have paid on its balance-due day for the year, on account of tax payable under this Part for the particular taxation year, the total of all amounts, each of which is an amount, for each designated province for the calendar year, determined by the formula

Authority to specify

(4) For the purposes of this section, the Minister of Finance may specify for a calendar year

• (a) the designated provinces; and

• (b) the fuel return specified for a designated province.

Amount not specified

(5) For the purposes of this section, if the Minister of Finance does not specify a fuel return specified for a designated province for a calendar year under paragraph (4)‍(b), the fuel return specified for the designated province for the calendar year is deemed to be nil.

Assistance received

(6) For the purposes of this Act, an amount deemed by this section to have been paid on account of tax payable for a taxation year is assistance received by the taxpayer from a government in the taxation year in which the assistance is received.

Deemed rebate in respect of fuel charges

(7) An amount for a designated province included in the total of all amounts deemed by this section to have been paid on account of tax payable for a taxation year is deemed to have been paid during the taxation year as a rebate in respect of charges levied under Part 1 of the Greenhouse Gas Pollution Pricing Act in respect of the designated province.

Predecessor corporation

(8) For the purposes of subsection (2), where there has been an amalgamation or merger of two or more corporations before 2023, the corporation filing a return of income in 2023 is deemed to be the same corporation as and a continuation of each predecessor corporation that was registered with the Minister to make remittances required under section 153 under the corporation’s 2023 business number.

Predecessor corporation

(9) For the purposes of subsections (2) and (3), the number of persons employed by a corporation in a calendar year after 2022 is deemed to be nil in that year if the corporation is formed by an amalgamation or merger in that calendar year.

Province of employment

(10) For the purposes of this section, if a person is employed by the same corporation in more than one province in a calendar year, the person is deemed to be employed throughout the calendar year by that corporation in the province in respect of which the person has received the highest amount of remuneration paid by the corporation and is deemed not to be employed in any other province in the calendar year.

Deemed taxation year

(11) For the purposes of subsection (3), if a corporation has more than one taxation year ending in the same calendar year, the particular taxation year is the first taxation year that ends in that calendar year.

Definitions

127.‍48 (1) The following definitions apply in this section.

actual carbon intensity means the carbon intensity of hydrogen that is produced by a qualified clean hydrogen project of a taxpayer, based on the actual inputs to the production of hydrogen and actual emissions from the production of hydrogen by the project.‍ (intensité carbonique réelle)

average actual carbon intensity means, for the compliance period of a clean hydrogen project, the number determined by the formula 

captured carbon means captured carbon dioxide that

• (a) would otherwise be released into the atmosphere; or

• (b) is captured directly from the ambient air.‍ (carbone capté)

carbon dioxide equivalent means the carbon dioxide emissions that would be required to produce a warming effect equivalent to the emissions of any specified greenhouse gas, as determined in accordance with the Clean Hydrogen Investment Tax Credit – Carbon Intensity Modelling Guidance Document published by the Government of Canada over an assessment period of 100 years.‍ (équivalent en dioxyde de carbone)

carbon intensity means the quantity in kilograms of carbon dioxide equivalent per kilogram of hydrogen produced.‍ (intensité carbonique)

CCUS process means the process of carbon capture, utilization and storage that includes the

• (a) capture of carbon dioxide

  • (i) that would otherwise be released into the atmosphere, or

  • (ii) directly from the ambient air; and

• (b) storage or use of the captured carbon.‍ (processus de CUSC)

CCUS project means a project that is intended to support a CCUS process by

• (a) capturing carbon dioxide

  • (i) that would otherwise be released into the atmosphere, or

  • (ii) directly from the ambient air;

• (b) transporting captured carbon; or

• (c) storing or using captured carbon.‍ (projet de CUSC)

CFR carbon intensity means carbon intensity as defined in subsection 1(1) of the Clean Fuel Regulations.‍ (intensité carbonique selon le RCP)

clean ammonia means ammonia produced from clean hydrogen.‍ (ammoniac propre)

clean ammonia equipment means equipment that is used solely for the purpose of producing ammonia, including equipment for

• (a) converting hydrogen into ammonia;

• (b) heat recovery and conversion;

• (c) nitrogen generation;

• (d) feed storage (unless the feed is stored hydrogen) and feed compression; and

• (e) on-site refrigeration, transportation and storage of ammonia.‍ (matériel pour ammoniac propre)

clean hydrogen means hydrogen produced, whether solely or in conjunction with other gases, that has a carbon intensity of less than four.‍ (hydrogène propre)

clean hydrogen project of a taxpayer means a project involving

• (a) the operation of eligible clean hydrogen property;

• (b) the production of clean hydrogen; and

• (c) if applicable, the production of clean ammonia that uses a feedstock of clean hydrogen produced by the project.‍ (projet pour l’hydrogène propre)

clean hydrogen project plan means a plan for a clean hydrogen project of a taxpayer that

• (a) includes a front-end engineering design study (or an equivalent study as determined by the Minister of Natural Resources) for the project;

• (b) sets out the expected sources of electricity to be consumed in connection with the project, including sources described in any eligible power purchase agreements;

• (c) sets out the expected carbon intensity of the hydrogen to be produced by the project

  • (i) determined in accordance with subsection (6), and

  • (ii) supported by a report prepared by a qualified validation firm in respect of the project that includes attestations by the firm that

    • (A) the assumptions in the modelling of the expected carbon intensity are reasonable, and

    • (B) the expected carbon intensity has been determined in accordance with the Clean Hydrogen Investment Tax Credit – Carbon Intensity Modelling Guidance Document published by the Government of Canada;

• (d) if the project is intended to produce clean ammonia, demonstrates

  • (i) that the project can reasonably be expected to have sufficient hydrogen production capacity to satisfy the needs of the taxpayer’s ammonia production facility, and

  • (ii) if the taxpayer’s hydrogen production facility and its ammonia production facility are not co-located, the feasibility of transporting hydrogen between the facilities;

• (e) contains any information required in guidelines published by the Minister of Natural Resources, including the Clean Hydrogen Investment Tax Credit – Validation and Verification Guidance Document; and

• (f) is filed by the taxpayer with the Minister of Natural Resources, in the form and manner determined by the Minister of Natural Resources.‍ (plan de projet pour l’hydrogène propre)

clean hydrogen tax credit of a qualifying taxpayer for a taxation year means

• (a) the total of all amounts each of which is the specified percentage of the capital cost to the taxpayer of an eligible clean hydrogen property that is acquired by the taxpayer in the year; and

• (b) the total of all amounts required by subsection (12) to be added in computing the taxpayer’s clean hydrogen tax credit at the end of the year.‍ (crédit d’impôt pour l’hydrogène propre)

compliance period in respect of a clean hydrogen project of a taxpayer, means the period of time beginning on the first day of the compliance period of the project and ending on the last day of the fifth operating year of the project.‍ (période de conformité)

dual-use electricity and heat equipment means equipment that is part of a clean hydrogen project (excluding electricity generation equipment that supports the project indirectly by way of an electrical utility grid), that supports the production of hydrogen from eligible hydrocarbons and that

• (a) generates electrical energy, heat energy or a combination of electrical and heat energy, and more than 50% of either the electrical energy or heat energy that is expected to be produced over the first 20 years of the project’s operations, based on the most recent clean hydrogen project plan, is expected to support

  • (i) a CCUS project, unless the equipment uses fossil fuels and emits carbon dioxide that is not subject to capture by a CCUS process, or

  • (ii) a qualified clean hydrogen project, unless the equipment uses fossil fuels and emits carbon dioxide that is not subject to capture by a CCUS process; or

• (b) is equipment that directly transmits electrical energy from equipment described in paragraph (a) to a qualified clean hydrogen project and more than 50% of the electrical energy to be transmitted by the equipment over the first 20 years of the project’s operations, based on the most recent clean hydrogen project plan, is expected to support the CCUS project or qualified clean hydrogen project.‍ (matériel pour électricité et chaleur à double usage)