Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

Budget Implementation Act, 2017, No. 1 (S.C. 2017, c. 20)

Assented to 2017-06-22

  •  (1) Subclause 126(1)(b)(ii)(A)(III) of the Act is replaced by the following:

    • (III) the total of all amounts each of which is an amount deducted under section 110.6 or paragraph 111(1)(b), or deductible under any of paragraphs 110(1)(d) to (d.3), (f) and (g) and sections 112 and 113, in computing the taxpayer’s taxable income for the year, and

  • (2) Subclause 126(2.1)(a)(ii)(A)(III) of the Act is replaced by the following:

    • (III) the total of all amounts each of which is an amount deducted under section 110.6 or paragraph 111(1)(b), or deductible under any of paragraphs 110(1)(d) to (d.3), (f) and (g) and sections 112 and 113, in computing the taxpayer’s taxable income for the year, and

  • (3) Subparagraph 126(3)(b)(iii) of the Act is replaced by the following:

    • (iii) the total of all amounts each of which is an amount deducted under section 110.6 or paragraph 111(1)(b), or deductible under any of paragraphs 110(1)(d) to (d.3), (f) and (g), in computing the taxpayer’s taxable income for the year,

  • (4) Subsections (1) to (3) come into force on January 1, 2018.

  •  (1) Subparagraph 127(5)(a)(i) of the Act is replaced by the following:

    • (i) the taxpayer’s investment tax credit at the end of the year in respect of property acquired before the end of the year, of the taxpayer’s apprenticeship expenditure for the year or a preceding taxation year, of the taxpayer’s flow-through mining expenditure for the year or a preceding taxation year, of the taxpayer’s pre-production mining expenditure for the year or a preceding taxation year or of the taxpayer’s SR&ED qualified expenditure pool at the end of the year or at the end of a preceding taxation year, and

  • (2) Clause 127(5)(a)(ii)(A) of the Act is replaced by the following:

    • (A) the taxpayer’s investment tax credit at the end of the year in respect of property acquired in a subsequent taxation year, of the taxpayer’s apprenticeship expenditure for a subsequent taxation year, of the taxpayer’s flow-through mining expenditure for a subsequent taxation year, of the taxpayer’s pre-production mining expenditure for a subsequent taxation year or of the taxpayer’s SR&ED qualified expenditure pool at the end of the subsequent taxation year to the extent that an investment tax credit was not deductible under this subsection for the subsequent taxation year, and

  • (3) Subsection 127(7) of the Act is replaced by the following:

    • Marginal note:Investment tax credit of certain trusts

      (7) If, in a particular taxation year of a taxpayer who is a beneficiary under a trust that is a graduated rate estate or that is deemed to be in existence by section 143, an amount is determined in respect of the trust under paragraph (a), (a.1), (a.4), (b) or (e.1) of the definition investment tax credit in subsection (9) for its taxation year that ends in that particular taxation year, the trust may, in its return of income for its taxation year that ends in that particular taxation year, designate the portion of that amount that can, having regard to all the circumstances including the terms and conditions of the trust, reasonably be considered to be attributable to the taxpayer and was not designated by the trust in respect of any other beneficiary of the trust, and that portion is to be added in computing the investment tax credit of the taxpayer at the end of that particular taxation year and is to be deducted in computing the investment tax credit of the trust at the end of its taxation year that ends in that particular taxation year.

  • (4) The portion of subsection 127(8) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Investment tax credit of partnership

      (8) Subject to subsection (28), where, in a particular taxation year of a taxpayer who is a member of a partnership, an amount would be determined in respect of the partnership, for its taxation year that ends in the particular taxation year, under paragraph (a), (a.1), (a.4), (b) or (e.1) of the definition investment tax credit in subsection (9), if

  • (5) Subparagraph 127(8.2)(b)(i) of the Act is amended by adding “or” at the end of clause (A.1) and by repealing clause (A.2).

  • (6) Paragraph 127(8.31)(a) of the Act is replaced by the following:

    • (a) the total of all amounts each of which is an amount that would, if the partnership were a person and its fiscal period were its taxation year, be determined in respect of the partnership under paragraph (a), (a.1), (a.4), (b) or (e.1) of the definition investment tax credit in subsection (9) for a taxation year that is the fiscal period,

  • (7) The definitions child care space amount, eligible child care space expenditure, specified child care start-up expenditure and specified property in subsection 127(9) of the Act are repealed.

  • (8) Paragraph (a) of the definition flow-through mining expenditure in subsection 127(9) of the Act is replaced by the following:

    • (a) that is a Canadian exploration expense incurred by a corporation after March 2017 and before 2019 (including, for greater certainty, an expense that is deemed by subsection 66(12.66) to be incurred before 2019) 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),

  • (9) Paragraphs (c) and (d) of the definition flow-through mining expenditure in subsection 127(9) of the Act are replaced by the following:

    • (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 2017 and before April 2018, and

    • (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 2017 and before April 2018; (dépense minière déterminée)

  • (10) Paragraph (a.5) of the definition investment tax credit in subsection 127(9) of the Act is repealed.

  • (11) Paragraph (e.1) of the definition investment tax credit in subsection 127(9) of the Act is amended by adding “or” at the end of subparagraph (v), by replacing “or” at the end of subparagraph (vi) with “and” and by repealing subparagraph (vii).

  • (12) Paragraph (f.1) of the definition specified percentage in subsection 127(9) of the Act is amended by adding “or” at the end of subparagraph (i), by striking out “or” at the end of subparagraph (ii) and by repealing subparagraph (iii).

  • (13) Subsection 127(11.1) of the Act is amended by adding “and” at the end of paragraph (c.4) and by repealing paragraph (c.5).

  • (14) Subsection 127(11.2) of the Act is replaced by the following:

    • Marginal note:Time of acquisition

      (11.2) In applying subsections (5), (7) and (8), paragraphs (a) and (a.1) of the definition investment tax credit in subsection (9) and section 127.1, qualified property and qualified resource property are deemed not to have been acquired by a taxpayer before the property is considered to have become available for use by the taxpayer, determined without reference to paragraphs 13(27)(c) and (28)(d).

  • (15) Subsections 127(27.1) to (27.12) of the Act are repealed.

  • (16) Subsection 127(28.1) of the Act is repealed.

  • (17) Subparagraph 127(30)(a) of the Act is amended by adding “and” at the end of subparagraph (i), by striking out “and” at the end of subparagraph (ii) and by repealing subparagraph (iii).

  • (18) Paragraph 127(30)(b) of the Act is replaced by the following:

    • (b) the amount that would be determined in respect of the partnership under subsection (8) if that subsection were read without reference to subsections (28) and (35).

  • (19) Subsections (1) to (7) and (10) to (18) apply in respect of expenditures incurred after March 21, 2017, except that they do not apply in respect of expenditures incurred before 2020 under a written agreement entered into before March 22, 2017.

  • (20) Subsections (8) and (9) apply to expenses renounced under a flow-through share agreement entered into after March 2017.

 
Date modified: