The "Corporation" acquires sludge from municipal water treatment plant which, through processing by a digester, produces gas and digestate. The gas is stored by the Corporation and sold to its customers to produce thermal energy. The digestate is spread on farmers’ lands. Respecting the digester’s inclusion in Class 43.2, CRA stated:
The digester related to gas production involved in this project could be included in Class 43.2 by virtue of subparagraph (d)(xiii) of Class 43.1 if the following conditions are satisfied:
(1) The digester is part of a system used by the taxpayer, or its lessee, primarily to produce and store Biogas 2008 produced from organic waste such as sludge from "eligible sewage treatment facilities”;
(2) The digester is an anaerobic digester reactor;
(3) The digester is not property described in clauses (A) to (D) of subparagraph (d)(xiii) of Class 43.1;
(4) The digester is located in Canada; and,
(5) Corporation acquires a new digester to use for the purpose of earning income from a business carried on in Canada or income from property situated in Canada.