Section CZ 22 — Income Tax Act 2007: Geothermal wells between 31 March 2003 and 17 May 2006

CZ 22 Geothermal wells between 31 March 2003 and 17 May 2006 When this section applies (1) This section applies to a person’s geothermal well when— (a) the well is— (i) both started and completed between 31 March 2003 and 17 May 2006: (ii) acquired between 31 March 2003 and 17 May 2006; and (b) the person— (i) uses the well, or has the well available for use, after the end of the well’s geothermal energy proving period in deriving income or carrying on a business for the purpose of deriving income: (ii) disposes of the well. Income: using well (2) For a person to whom subsection (1)(b)(i) applies, the person has, for the first income year in which this section applies, an amount of income equal to the total amount of deductions that the person is allowed for the well under section DZ 7 of the Income Tax Act 1994, section DZ 15 of the Income Tax Act 2004, and section DZ 16 (Geothermal wells between 31 March 2003 and 17 May 2006) for all income years. Income: disposing of well (3) For a person to whom subsection (1)(b)(ii) applies, the person has, for the first income year in which this section applies, an amount of income equal to the lesser of— (a) the amount derived from disposing of the well; and (b) the total amount of deductions that the person is allowed for the well under section DZ 7 of the Income Tax Act 1994, section DZ 15 of the Income Tax Act 2004, and section DZ 16 for all income years. Defined in this Act: amount , business , deduction , dispose , geothermal energy proving period , geothermal well , income , income year Compare: 2004 No 35 s CZ 20