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.
Principal Issues:
Whether Gas Turbine and Steam Turbine in a Cogeneration Project eligible for class 43.1 if Hog Boiler will be owned by Third Party.
Position:
Yes.
Reasons:
No Requirement in Class 43.1 that the taxpayer own all the equipment in a Cogeneration project.
952680
XXXXXXXXXX Wm. P. Guglich
Attention: XXXXXXXXXX
August 28, 1996
Dear Sirs:
Re: XXXXXXXXXX
This is in reply to your letter of July 25, 1995, concerning the eligibility for inclusion in class 43.1 of the draft Income Tax Regulations of a gas turbine and a steam turbine.
You describe a situation where in a cogeneration project the gas turbine and the steam turbine will be owned by your corporation, but the hog fired boiler will be owned by another party.
In our view, the fact that the hog fired boiler will be owned by another party would not, in and by itself, preclude the gas turbine or the steam turbine from qualifying for inclusion in class 43.1 of the draft Regulations.
We trust our comments will be of assistance to you.
Yours truly,
R. Albert
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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