Bill C-382: An Act to amend the Excise Tax Act and the Income Tax Act (extra-energy-efficient products)

R.S., c. E-15 Excise Tax Act 1 Subsection 123(1) of the Excise Tax Act is amended by adding the following in alphabetical order: extra-energy-efficient product  means a product that is designated in regulations made under section 125.1; ( produit super-écoénergétique ) 2 The Act is amended by adding the following after section 125: Regulations Regulations — Governor in Council 125.1 (1) For the purposes of this Part in relation to Part XI of Schedule VI, the Governor in Council, on the recommendation of the Minister and the Minister of Natural Resources, may make regulations designating certain products or classes of products as extra-energy-efficient products, subject to the following conditions: (a) the product or class of products must exceed, by at least 10%, the energy efficiency standard that applies to it under the Energy Efficiency Regulations, 2016 ; (b) the product or class of products must not occupy more than 50% of the domestic market share for that product or class of products; and (c) consideration must be given to harmonizing, if possible, the basis for the designation with criteria used in other jurisdictions or by relevant organizations to identify products or classes of products whose energy efficiency is exemplary. Review of regulations (2) Regulations made under subsection (1) must be reviewed regularly, at least once every five years, to ensure that the “extra-energy-efficient” designation reflects technological development and responds to changes in the consumer market and to encourage the use of products whose energy efficiency is exemplary. 3 Schedule VI to the Act is amended by adding the following after Part X: PART XI Extra-energy-efficient Products 1 A supply of the following household appliances that are extra-energy-efficient products: (a) clothes dryers; (b) clothes washers; (c) integrated clothes washer-dryers; (d) dishwashers; (e) refrigerators and combination refrigerator-freezers; (f) freezers; (g) electric ranges; (h) dehumidifiers; (i) microwave ovens; (j) miscellaneous refrigeration products; and (k) ceiling fans. 2 A supply of the following air conditioners, condensing units and chillers that are extra-energy-efficient products: (a) room air conditioners; (b) large air conditioners; (c) packaged terminal air conditioners; (d) single package central air conditioners; (e) single package vertical air conditioners; (f) split system central air conditioners; (g) large condensing units; (h) chillers; and (i) portable air conditioners. 3 A supply of the following heat pumps that are extra-energy-efficient products: (a) ground-source heat pumps; (b) internal water loop heat pumps; (c) air-source heat pumps; (d) large heat pumps; (e) packaged terminal heat pumps; (f) single package central heat pumps; (g) single package vertical heat pumps; and (h) split system central heat pumps. 4 A supply of the following furnaces and recovery ventilators that are extra-energy-efficient products: (a) electric furnaces; (b) recovery ventilators; (c) energy-recovery ventilators; and (d) heat-recovery ventilators. 5 A supply of electric boilers that are extra-energy-efficient products. 6 A supply of electric water heaters that are extra-energy-efficient products. 7 A supply of the following lamps and lamp ballasts that are extra-energy-efficient products: (a) compact fluorescent lamps; (b) general service lamps; (c) modified spectrum incandescent lamps; (d) general service incandescent reflector lamps; (e) general service fluorescent lamps; (f) fluorescent lamp ballasts; and (g) metal halide lamp ballasts. 8 A supply of the following lighting fixtures that are extra-energy-efficient products: (a) torchieres; and (b) ceiling fan light kits. 9 A supply of the following electronic products that are extra-energy-efficient products: (a) compact audio products; (b) video products; (c) televisions; (d) external power supplies; and (e) battery chargers. 10 A supply of the following motors that are extra-energy-efficient products: (a) electric motors; and (b) small electric motors. R.S., c. 1 (5th Supp.) Income Tax Act 4 The Income Tax Act is amended by adding the following after section 118.07: Definition of extra-energy-efficient product 118.08 (1) In this section, extra-energy-efficient product means a product that falls within any of the following classes and that is designated as an extra-energy- efficient product in regulations made under subsection (4): (a) clothes dryers; (b) clothes washers; (c) integrated clothes washer-dryers; (d) dishwashers; (e) refrigerators and combination refrigerator-freezers; (f) freezers; (g) electric ranges; (h) dehumidifiers; (i) microwave ovens; (j) miscellaneous refrigeration products; (k) ceiling fans; (l) room air conditioners; (m) large air conditioners; (n) packaged terminal air conditioners; (o) single package central air conditioners; (p) single package vertical air conditioners; (q) split system central air conditioners; (r) large condensing units; (s) chillers; (t) portable air conditioners; (u) ground-source heat pumps; (v) internal water loop heat pumps; (w) air-source heat pumps; (x) large heat pumps; (y) packaged terminal heat pumps; (z) single package central heat pumps; (aa) single package vertical heat pumps; (bb) split system central heat pumps; (cc) electric furnaces; (dd) recovery ventilators; (ee) energy-recovery ventilators; (ff) heat-recovery ventilators; (gg) electric boilers; (hh) electric water heaters; (ii) compact fluorescent lamps; (jj) general service lamps; (kk) modified spectrum incandescent lamps; (ll) general service incandescent reflector lamps; (mm) general service fluorescent lamps; (nn) fluorescent lamp ballasts; (oo) metal halide lamp ballasts; (pp) torchieres; (qq) ceiling fan light kits; (rr) compact audio products; (ss) video products; (tt) televisions; (uu) external power supplies; (vv) battery chargers; (ww) electric motors; and (xx) small electric motors. Extra-energy-efficient product tax credit (2) For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted the amount, up to a maximum of $1000 for the individual in that year, determined by the formula A × B where A is 10%; and B is the total of all amounts paid by the individual in the taxation year towards the purchase of extra- energy-efficient products. Apportionment of credit (3) If more than one individual is entitled to a deduction under this section for a taxation year in respect of an extra-energy-efficient product, the total of all amounts so deductible must not exceed the maximum amount that would be so deductible for the year by any one of those individuals for that extra-energy-efficient product if that individual were the only individual entitled to deduct an amount for the year under this section, and, if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions. Regulations (4) The Governor in Council, on the recommendation of the Minister and the Minister of Natural Resources, may make regulations designating certain products or classes of products as extra-energy-efficient products, subject to the following conditions: (a) the product or class of products must exceed, by at least 10%, the energy efficiency standard that applies to it under the Energy Efficiency Regulations, 2016 ; (b) the product or class of products must not occupy more than 50% of the domestic market share for that product or class of products; and (c) consideration must be given to harmonizing, if possible, the basis for the designation with criteria used in other jurisdictions or by relevant organizations to identify products or classes of products whose energy efficiency is exemplary. Review of regulations (5) Regulations made under subsection (4) must be reviewed regularly, at least once every five years, to ensure that the “extra-energy-efficient” designation reflects technological development and responds to changes in the consumer market and to encourage the use of products whose energy efficiency is exemplary.