,canada ,cu/oms                       #a
& ,rev5ue ,ag5cy

          ,9t]pret,n ,bullet9
    
,subject3 ,9come ,tax ,act
  ,m1n+ ( 8,3/ruc;n0
,numb]3 ,,it-#daa;,r
,date3 ,octob] #bc1 #aiif
,ref];e3 ,p>agraph 7c7 (! def9i;n (
  8manufactur+ or process+0 9 subsec;n
  #abe.a7#c7 7al subsec;n #abg7#e71
  p>agraph #abg7#aa77a7 (! ,9come ,tax
  ,act2 & classes #bb1 #bi1 #ch1 #ci &
  #dc ( ,s*$ule ,,ii1 subsec;n #aajd7#i7
  & p>agraph #dfjj7#b77e7 (! ,9come ,tax
  ,regul,ns7







                                      #a
                 ,3t5ts              a#a
    
--,applic,n
--,summ>y
--,4cus.n & ,9t]pret,n
  --,g5]al 7p>agraphs #a-f7
  --,r1dy-,mix ,3crete ,truck 7p>agraphs
    #g-i7
--,explan,n ( ,*anges

               ,applic,n
    
  ,? bullet9 c.els & replaces ,,it-#daa
dat$ ,m>* #bc1 #aigh1 &! ,special
,rel1se 6,,it-#daa dat$ ,octob] #ca1
#aiia4

                ,summ>y
    
  ,? bullet9 4cusses ! m1n+ 6be
attribut$ 6! t]m 83/ruc;n0 =! purposes
(! manufactur+ & process+ pr(its
deduc;n1 ! 9ve/;t tax cr$it & capital
co/ all[.e on classes #bi1 #ci1 & #dc4
                                      #b
              ,,it-#daa;,r           b#a
  ,! manufactur+ & process+ pr(its
deduc;n is a deduc;n f a corpor,n's ,"p
,i tax o!rwise paya#1 : is bas$ on
,canadian manufactur+ & process+ pr(its4
,! deduc;n reduces ! e6ective rate (
corporate tax on ,canadian manufactur+ &
process+ pr(its4
  ,! purpose ( ? deduc;n is 6attract &
9cr1se 9ve/;t 9 ! ,canadian manufactur+
& process+ sector & 6provide a tax
9c5tive = busi;ses t cd r1dily relocate
6ano!r c.try 6rema9 9 ,canada4
--------------------------------------#b
  ,? 9c5tive is n availa# 6s]vice
9du/ries s* z 3/ruc;n4 ,acly1 c]ta9
types ( activities s* z 3/ruc;n >e
exclud$ f ! def9i;n ( 8manufactur+ or
process+0 = purposes ( ? deduc;n4 ,9
a4i;n1 deprecia# prop]ty us$ 9 a 3/ruc;n
busi;s is exclud$ f classes #bi1 #ci1 &
#dc = capital co/ all[.e purposes & does
n qualify =! 9ve/;t tax cr$it 2c s*
prop]ty is n us$ 9 e>n+ ,canadian
manufactur+ & process+ pr(its4        #c
          ,4cus.n & ,9t]pret,n       a#b
    
        ,g5]al 7p>agraphs #a-f7
    
#a4 ,! m1n+ ( 83/ruc;n0 9 p>agraph 7c7
  (! def9i;n ( 8manufactur+ or process+0
  9 subsec;n #abe.a7#c7 has be5 9t]pret$
  0! c\rts z ref]r+ 6a 3/ruc;n "utak+ or
  5t]prise r ?an 3/ruc;n 9 ! n>r[] s5se
  ( an activ;y4 ,! det]m9,n ( :e!r a
  corpor,n is 5gag$ 9 3/ruc;n g5],y
  takes 96a3.t factors s* z3
  7a7 :e!r ! ov]all activities c>ri$ \
    0! "picul> corpor,n fall )9 ! m1n+
    (! t]m 83/ruc;n0 z -monly us$ &
    a3ept$ 9 ! 3/ruc;n 9du/ry2 &
  7b7 ! use ( 3/ruc;n equip;t s* z
    trucks1 tractor-trail]s1 asphaltic
    3crete roll]s1 etc41 9 ! activities1
    m5;n$ 9 7a7 abv4
  
  ,s* activities >e 3sid]$ 6be ^? norm,y
  associat$ )! .on-site fabric,n &
  erec;n ( build+s1 roads1 bridges1 p>k+
  lots1 driveways1 etc41 : >e 9t5d$   #d
              ,,it-#daa;,r           b#b
  6be p]man5tly a6ix$ 6! l& on : !y >e
  built4 ,h["e1 9 "s cases 7see
  p>agraphs #b & #c 2l71 ! t]m 83/ruc;n0
  may apply 6activities : 9volve !
  manufacture ( build+ products &
  /ructures : >e transport$ f ! place (
  manufacture 6! place ": !y >e 9t5d$
  6be p]man5tly a6ix$4 ,s* build+
  products may1 = example1 9clude r1dy-
  mix 3crete1 asphalt1 /ructural &
  re9=c$ /eel1 preca/ 3crete sec;ns &
  blocks1 curta9 walls1 duct"w1 & pre-
  fabricat$ -pon5ts = build+s4
#b4 ,a corpor,n may c>ry on a 3/ruc;n
  "utak+ &1 at ! same "t1 c>ry on an
  activ;y t is view$ z a manufactur+ or
  process+ op],n4 ,! det]m9,n ( :e!r !
  manufactur+ or process+ op],n is1 9
  r1l;y1 a -pon5t (! 3/ruc;n "utak+ is a
  "q ( fact & dep5ds on ! circum/.es (
  ea* "picul> case4

  ,a manufactur+ or process+ activ;y
  c>ri$ on 0a corpor,n t is 5gag$ 9   #e
              ,,it-#daa;,r           c#b
  a 3/ruc;n "utak+ wd norm,y 2 3sid]$
  6fall )9 ! m1n+ ( 3/ruc;n1 if !
  activ;y =ms an .9tegral "p (! 3/ruc;n
  "utak+4 ,! manufactur+ or process+
  activ;y is 3sid]$ 6=m an 9tegral "p (!
  3/ruc;n "utak+ if ..all or sub/anti,y
  .all (! produc;n f t activ;y is us$ or
  is ne$$ 6c>ry on ! corpor,n's 3/ruc;n
  "utak+4

  ,= ? purpose1 ! proxim;y (! "picul>
  loc,n ": ! product is manufactur$1 6!
  loc,n ": x is 6be p]man5tly a6ix$ or
  9/all$1 & :e!r plant or equip;t us$ 9
  ! "picul> activ;y is fix$ or mobile1
  >e n det]m9ative factors4 ,acly1 :5 a
  corpor,n 5t]s 96a supply & erect
  3tract1 ! (f-site manufacture ( build+
  products & pre-fabricat$ -pon5ts wd1
  g5],y1 2 3sid]$ 6be 3/ruc;n if ! abv
  crit]ia >e met4
#c4 ,z a g5]al rule1 ! on-site fabric,n1
  9/all,n1 & erec;n ( ma*9]y & equip;t1
  reg>d.s ( size1 is n 3sid]$ 6be     #f
              ,,it-#daa;,r           d#b
  3/ruc;n1 un.s x 3/itutes a -pon5t "p
  (a build+ or /ructure 7e4g41 h1t+
  sy/em1 air-3di;n+ equip;t1 spr9kl]
  sy/em1 plumb+1 wir+1 etc474 ,ma*9]y or
  equip;t : =ms an 9tegral "p (a
  manufactur+ or process+ activ;y c>ri$
  on 9side a build+ is n reg>d$ z a
  -pon5t "p (! build+ & "!=e1 is n
  3/ruc;n1 ev5 if x may 2 firmly atta*$
  6! build+ 2c ( vibr,ns1 wei<t1 size1
  etc4 ,9 "s cases1 :5 ! 9/all,n (
  ma*9]y & equip;t co9cides )! 3/ruc;n
--------------------------------------#c
  & erec;n (a build+ or o!r /ructure1 "!
  may 2 practical di6iculties 9 det]m9+
  :at activities >e 3/ruc;n4 ,9 ^!
  cases1 ! foll[+ guidel9es apply3
  7a7 ,! 9/all,n & erec;n (! f.d,n1
    walls1 floors1 ro( & 9fra/ructure =!
    ma*9]y or equip;t 7i4e4 pil+s1
    foot+s1 pi]s1 pill>s1 pits1 etc47 is
    reg>d$ z 3/ruc;n4
  7b7 ,! fabric,n1 9/all,n & erec;n (!
    ma*9]y & equip;t 9side !          #g
              ,,it-#daa;,r           a#c
    /ructure 79clud+ relat$ wir+1
    plumb+1 duct"w1 etc47 t is .prim>ily
    us$ =! purpose (a manufactur+ or
    process+ activ;y1 : w 2 c>ri$ on
    9side ! /ructure1 is n reg>d$ z
    3/ruc;n4

  ,! "w describ$ 9 7a7 abv is 3sid]$ 6be
  a -pon5t "p (! build+1 ":as 7b7 ref]s
  6"w relat$ 6! ma*9]y or equip;t t is
  us$ = manufactur+ or process+ purposes
  & is n 3sid]$ 6be a -pon5t "p (!
  /ructure4 ,) respect to 7a7 abv1 !
  fact t ! build+ is us$ = manufactur+ &
  process+ purposes 0xs o3upant is n
  relevant 9 det]m9+ :e!r ! 9/all] is
  5gag$ 9 a manufactur+ or process+
  activ;y1 z oppos$ 63/ruc;n4 ,! fact t
  activities describ$ 9 7b7 abv >e n
  3sid]$ 6be 3/ruc;n does n m1n t !
  activities necess>ily qualify z a
  manufactur+ & process+ activ;y =!
  purpose ( sec;n #abe.a (! ,act4
                                      #h
              ,,it-#daa;,r           b#c
#d4 ,if a manufactur+ or process+
  activ;y is n 3sid]$ 6be 3/ruc;n 2c x
  does n =m an 9tegral "p (! 3/ruc;n
  "utak+1 ! activ;y is 3sid]$ 6be
  sep>ate f ! 3/ruc;n "utak+ & may
  qualify =! manufactur+ & process+
  pr(its deduc;n "u sec;n #abe.a1
  provid$ t ! o!r require;ts ( t sec;n
  >e met4 ,= ? purpose1 a sep>ate
  activ;y wd 2 3sid]$ 6be a 4t9ct busi;s
  c>ri$ on 0! corpor,n 9 a4i;n 6!
  3/ruc;n busi;s &! produc;n f s* a
  manufactur+ activ;y wd repres5t !
  manufactur+ or process+ ( gds4
  ,6qualify =a deduc;n "u subsec;n
  #abe.a7#a71 "! has 6be a cle> del9e,n
  (! 9come f ea* s* busi;s &! 9come f !
  manufactur+ busi;s has 6be prop]ly
  calculat$4 ,subsec;n #abe.a7#c7 3ta9s
  ! def9i;n ( 8,canadian ,manufactur+ &
  ,process+ ,pr(its0 = ? purpose4
#e4 ,an activ;y t is 3sid]$ 6be sep>ate
  f ! 3/ruc;n "utak+ w rema9 z s* once x
  is e/abli%$ t ! activ;y is n        #i
              ,,it-#daa;,r           c#c
  3/ruc;n4 ,h["e1 if ! circum/.es h
  subsequ5tly *ang$ &! activ;y c 2
  3sid]$1 ov] a r1sona# p]iod1 6be an
  9tegral "p (! 3/ruc;n "utak+1 !
  sep>ate activ;y may 2 3sid]$ 6h c1s$
  at ! 2g9n+ ( t r1sona# p]iod1 &!
  activ;y may 2 3sid]$ 6be 3/ruc;n4
  ,:e!r or n an activ;y1 : is n 3sid]$
  6be 3/ruc;n1 is "utak5 z a sep>ate
  activ;y1 is a f9d+ ( fact4
#f4 ,:e!r plant & equip;t us$ 9 s* a
  manufactur+ or process+ activ;y is
  fix$ or mobile is n a factor = capital
  co/ all[.e purposes1 det]m9$ "u
  classes #bi1 #ci1 or #dc ( ,s*$ule
  ,,ii (! ,regul,ns4

       ,r1dy-,mix ,3crete ,truck
            7p>agraph #g-i7
    
  ,! -;ts 9 p>agraphs #g 6#i 2l d1l )
:e!r ! activities relat$ 6! use (a r1dy-
mix 3crete truck >e 3sid]$ 6be 3/ruc;n &
>e subject 6! -;ts 9 p>agraphs #a    #aj
              ,,it-#daa;,r           d#c
& #b abv4 ,if s* activities =m an
9tegral "p (! 3/ruc;n "utak+1 !y >e
3sid]$ 6be 3/ruc;n4

#g4 ,": ! 9gr$i5ts 6make 3crete >e mix$
  9 a 3crete truck1 ! mix+ may qualify z
  manufactur+ & process+ & g5],y is n
  3sid]$ 3/ruc;n4 ,! travel "t (! truck
  is 3sid]$ h&l+ ( gds 9 process : is a
  qualifi$ activ;y ( manufactur+ &
  process+4 ,! 3crete is n 3sid]$ f9i%$
  gds until ! removal f ! mix]1 b !
  actual plac+ ( 3crete on-site is1 9
  g5]al1 3sid]$ 6be 3/ruc;n4
#h4 ,= purposes (! deduc;n "u sec;n
  #abe.a1 ! mix] & truck cab & *assis ^u
  : !y >e m.t$ >e g5],y 3sid]$ "p ( 8co/
  ( manufactur+ & process+ capital40 ,!
  wages (! truck driv]1 9 g5]al1 =m "p (
  8co/ ( manufactur+ & process+
--------------------------------------#d
  lab\r10 z def9$ 9 sec;n #ebjb (!
  ,regul,ns4
                                     #aa
              ,,it-#daa;,r           a#d
#i4 ,s9ce ! mobile mix] on ! truck is
  p[]-op]at$ movea# equip;t design$ n
  only = manufactur+ & process+ 3crete b
  al = plac+ 3crete1 x is 9clud$ 9 class
  #bb or #ch ( ,s*$ule ,,ii dep5d+ on :5
  & "u :at circum/.es x 0 acquir$ 7see !
  curr5t v].n ( ,,it-#dfi1 ,capital ,co/
  ,all[.e--,e>?-,mov+ ,equip;t1 =a
  4cus.n on ! applica# dates = classes
  #bb & #ch z well z _! capital co/
  all[.e rates74 ,! truck cab is norm,y
  a -pon5t "p (! mobile mix] & is al
  9clud$ 9 class #bb or #ch4 ,2c !
  mobile mix] is 9clud$ 9 class #bb or
  #ch1 x does n qualify = 9clu.n 9
  classes #bi1 #ci or #dc4

  ,9 g5]al1 ! capital co/ (a 3crete
  truck 79clud+ mobile mix]7 does n
  qualify =! 9ve/;t tax cr$it "u
  subsec;n #abg7#e74 ,s* a truck is
  design$ = use on hi<ways & /reets & is
  3sequ5tly exclud$ f prescrib$ ma*9]y &
  equip;t 0p>agraph #dfjj7#b77e7     #ab
              ,,it-#daa;,r           b#d
  (! ,regul,ns4 ,h["e1 9 ,cumb]l& ,r1dy
  ,mix ,ltd4 v4 ,h] ,maje/y ! ,que51 #id
  ,,dtc #fjgi1 ,7#aiid7' #a ,c4,t4,c4
  #ab1 ! ,f$]al ,c\rt--,trial ,divi.n
  has qualifi$ ? posi;n 09dicat+ t if !
  trucks >e sub/anti,y modifi$ 6process
  & deliv] 3crete 6cu/om]s s* t !
  trucks' prim>y purpose 0 6op]ate (f-
  hi<way on 3/ruc;n sites or at ! plant1
  ! trucks may qualify =! 9ve/;t tax
  cr$it4

          ,explan,n ( ,*anges
    
               ,9troduc;n
    
  ,! purpose (! ,explan,n ( ,*anges is
6give ! r1sons =! revi.ns 6an 9t]pret,n
bullet94 ,x \tl9es revi.ns t we h made z
a result ( *anges 6! law1 z well z
*anges reflect+ new or revis$ de"p;tal
9t]pret,ns4

                                     #ac
                ,ov]view             c#d
    
  ,? bullet9 4cusses1 9 g5]al t]ms1
crit]ia : ! ,de"p;t w 3sid] 9 det]m9+ !
m1n+ (! t]m 83/ruc;n0 = purposes (!
manufactur+ & process+ pr(its deduc;n "u
sec;n #abe.a1 ! 9ve/;t tax cr$it1 &
capital co/ all[.e on classes #bi1 #ci &
#dc4
  ,! prim>y purpose ( ? revi.n is
6reflect a *ange 9 \r posi;n reg>d+ !
m1n+ (! t]m 83/ruc;n40
  ,! -;ts 9 ? bullet9 >e n a6ect$ 0any
draft legisl,n rel1s$ 2f ,augu/ #h1
#aiif4

       ,legislative & o!r *anges
    
  ,"?\t ! bullet91 we h made m9or *anges
= cl>ific,n or r1dabil;y purposes4
  ,p>agraph #a 7replaces =m] p>agraph
#b7 is revis$ 6reflect ! fact t loc,n is
n ! sole or basic crit]ion 9 det]m9+
:e!r an activ;y is 3sid]$ 6be 3/ruc;n &
is 3si/5t )! ,f$]al ,c\rt (          #ad
              ,,it-#daa;,r           d#d
,app1l's -;ts 9 ! deci.n 9 ,h] ,maje/y !
,que5 v4 ,nova ,3/ruc;n ,-pany ,ltd41
#he ,,dtc #eeid1 ,7#aihf7' #a ,c4,t4,c4
#fh4 p>agraph #a al \tl9es ! factors t
%d 2 tak5 96a3.t 9 ! det]m9,n4
  ,new p>agraph #b 4cusses circum/.es :5
an activ;y t is view$ z a manufactur+ or
process+ op],n c 2 3sid]$ 6be 3/ruc;n &
>e 3si/5t )! f9d+s 9 ,h] ,maje/y ! ,que5
v4 ,nova ,3/ruc;n ,-pany ,ltd4 ,9 a4i;n1
p>agraph #b 9troduces an 8all or
sub/anti,y all0 te/ z a basis = det]m9+
if an activ;y "utak5 0a corpor,n =ms an
9tegral "p (! corpor,n's 3/ruc;n "utak+4
--------------------------------------#e
  ,p>agraph #c 7replaces =m] p>agraph
#c7 is exp&$ 6cl>ify ! di6];e 2t ! two
guidel9es 4cuss$ "!94
  ,new p>agraphs #d & #e provide a4i;nal
-;ts on ! require;ts = an activ;y
63/itute a sep>ate activ;y f ! 3/ruc;n
"utak+4
  ,new p>agraph #f 9dicates t ! mobil;y
( plant & equip;t us$ 9 a            #ae
              ,,it-#daa;,r           a#e
manufactur+ or process+ activ;y is n a
factor = capital co/ all[.e purposes )
respect 6classes #bi1 #ci1 or #dc (
,s*$ule ,,ii (! ,regul,ns4
  ,p>agraphs #g 6#i 7replace =m]
p>agraphs #d 6#f71 : 3c]ns r1dy-mix
3crete trucks1 h be5 revis$ 69dicate t
loc,n is n1 0xf1 a det]m9ative factor 9
det]m9+ :e!r ! activities relat$ 6!
trucks >e 3sid]$ 6be 3/ruc;n4 ,p>agraph
#i al 4cusses ! deci.n (! ,f$]al ,c\rt--
,trial ,divi.n 9 ,cumb]l& ,r1dy ,mix
,ltd4 v4 ,h] ,maje/y ! ,que51 #id ,,dtc
#fjgi1 ,7#aiid7' #a ,c4,t4,c4 #ab4
  ,! -;ts 9 =m] p>agraph #g1 : relat$
6mobile & fix$ asphalt plants1 >e no
l;g] relevant s9ce loc,n is n1 0xf1 a
det]m9ative factor 9 det]m9+ :e!r an
asphalt plant is 3sid]$ 6be 3/ruc;n4 ,!
g5]al pr9ciples \tl9$ 9 ! bullet9 reg>d+
! m1n+ ( 3/ruc;n apply 6asphalt plants4


                                     #af