Chapter History S3-F8-C2, Tax Incentives for Clean Energy Equipment


The purpose of a Chapter History page is to highlight any amendments to the information contained in a chapter of an income tax folio, including amendments to the information originally contained in an interpretation bulletin that has been cancelled and replaced with a folio chapter. It outlines amendments that have been made as a result of legislative changes and proposed legislative changes, precedential court decisions, as well as new or revised interpretations of the Canada Revenue Agency (CRA).

Except as otherwise noted, all statutory references herein are references to provisions of the Income Tax Act, R.S.C., 1985, c.1 (5th Supp.), as amended and all references to a Regulation are to the Income Tax Regulations, C.R.C., c. 945, as amended.

Update February 27, 2019

General revisions have been made to the Chapter to improve readability.

Revisions have been made to ¶2.7, ¶2.20 and ¶ 2.27, and ¶2.37.1 to ¶2.37.3 have been added to include changes announced with Budgets 2017 and 2018. In particular:

  1. Budget 2018 proposed to extend the accelerated CCA for assets acquired before 2025 (the measure was otherwise scheduled to expire at the end of 2019); and
  2. Budget 2017 introduced measures for certain costs incurred as part of an eligible geothermal project, such as:
    1. eligible geothermal energy equipment under Classes 43.1 and 43.2 is expanded to include geothermal equipment that is used primarily for the purpose of generating heat or a combination of heat and electricity;
    2. geothermal heating is made an eligible thermal energy source for use in a district energy system; and
    3. expenses incurred for the purpose of determining the extent and quality of a geothermal resource and the cost of all geothermal drilling (e.g., including geothermal production wells), for both electricity and heating projects, will qualify as a Canadian renewable and conservation expense.
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