the amount of gross revenue attributable to each business operation.

the amount of income derived from each business operation.This determination requires an examination and comparison of all the facts concerning each of the business operations in which the corporation is engaged.ДЎ.12 The following are important criteria for making the determination described in в™Ў.11: In the CRAвЂ™s view, such a corporation will generally qualify as a PBC if the corporationвЂ™s activities of the kind described in в™Ў.3 represent a larger or more important business operation than all other activities of the corporation combined. However, cogeneration systems that use fossil fuels must meet a higher efficiency standard in order to be eligible for inclusion in Class 43.2.ДЎ.11 A corporation might be engaged in activities listed in В¶ 1.3 as well as other business operations. Generally, where depreciable property described in Class 43.1 is acquired after Februand before 2020, it will be eligible for inclusion under Class 43.2. Class 43.1 has a 30% CCA rate on a declining balance basis and Class 43.2 has a 50% CCA rate on a declining balance basis. by using a fixed location wind energy conversion system that is described in subparagraph ( d)(v) of CCA Class 43.1.ДЎ.9 Class 43.1 and Class 43.2 of Schedule II to the Regulations provide an accelerated CCA for investments in certain clean energy generation and energy conservation equipment situated in Canada.from solar energy by using fixed location photovoltaic equipment that is described in subparagraph ( d)(vi) of CCA Class 43.1 or.Generation or distribution of energy, or the production of fuelДЎ.8 The phrase, generation of energy, in paragraph ( h) of the PBC definition, includes operations such as the generation of electrical energy: Some of the qualifying business operations and activities included in the PBC definition are discussed in в™Ў.4 вЂ“ 1.10. (i) the development of projects for which it is reasonable to expect that at least 50% of the capital cost of the depreciable property to be used in each project would be the capital cost of property described in Class 43.1 or 43.2 of Schedule II to the Regulations. (h) the generation or distribution of energy, or the production of fuel, using property described in Class 43.1 or 43.2 of Schedule II to the Regulations, and (g) the manufacturing of products, where the manufacturing involves the processing of calcium chloride, gypsum, kaolin, sodium chloride or potash, (f.1) the production or marketing of calcium chloride, gypsum, kaolin, sodium chloride or potash, (f) the operation of a pipeline for the transmission of oil or gas, (d) the processing or marketing of metals or minerals that were recovered from mineral ores and that include metals or minerals recovered from mineral ores processed by the corporation, (c) the processing of mineral ores for the purpose of recovering metals or minerals from the ores, (a.1) exploring or drilling for petroleum or natural gas, (a) the production, refining or marketing of petroleum, petroleum products or natural gas, The reader should, therefore, consider such comments in light of the relevant provisions of the law in force for the particular tax year being considered.ДЎ.3 The qualifying business operations or activities described in paragraphs ( a) to ( i) of the PBC definition in subsection 66(15) are: While the comments in a particular paragraph in a folio may relate to provisions of the law in force at the time they were made, such comments are not a substitute for the law. Due to their technical nature, folios are used primarily by tax specialists and other individuals who have an interest in tax matters. The Canada Revenue Agency (CRA) issues income tax folios to provide technical interpretations and positions regarding certain provisions contained in income tax law. The Chapter also outlines the significance of PBC status for income tax purposes and discusses some general information that could be useful to a corporation when determining this status. In general, a PBC is a corporation whose principal business includes one or a combination of the qualifying business activities described in paragraphs ( a) to ( i) in the definition. This Chapter discusses the criteria for determining whether a corporation qualifies as a principal-business corporation (PBC) as that term is defined in subsection 66(15). The Act provides various incentives for principal-business corporations operating in resource industries.

Principal definition business