Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
933454
XXXXXXXXXX W.P. Guglich
Attention: XXXXXXXXXX
March 24, 1994
Dear Sirs:
Re: Class 34 - Leasing of Cogeneration Equipment
This is in reply to your letter of November 19, 1993 wherein you requested our opinion respecting the eligibility for inclusion in class 34 of leased cogeneration equipment.
The February 22, 1994 budget (the "Budget") proposes to terminate all additions to class 34 respecting property acquired after February 21, 1994 subject to transitional relief whereby property which was under construction by or on behalf of the taxpayer before February 22, 1994 and property acquired by the taxpayer pursuant to a written agreement of purchase and sale entered into by the taxpayer before February 22, 1994 will still be eligible for inclusion in class 34.
The Budget proposes to provide a 30-per-cent declining balance CCA rate for all acquisitions after February 21, 1994 of certain types of energy conservation equipment used in Canada in an industrial process or to generate electricity.
Draft regulations respecting the Budget proposals have not yet been released.
As for acquisitions before February 22, 1994, the leasing of the equipment for use by the lessee in Canada would not in and by itself preclude it from inclusion in class 34. To qualify for inclusion of property in class 34 a certificate is required from the Minister of Natural Resources. Requests for and information regarding such certificates should be forwarded to:
Mr. Don J. Skinner
Chief
Industrial/Commercial Group
Energy Efficiency Division
CANMET
Natural Resources Canada
580 Booth Street
Ottawa, Ontario
K1A 0E4
We trust our comments will be of assistance.
Yours truly,
for Director
Business and General Division
Rulings Directorate
Legislative and Intergovernmental
Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1994
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© Sa Majesté la Reine du Chef du Canada, 1994
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