Skip to main content

Bill C-421

If you have any questions or comments regarding the accessibility of this publication, please contact us at

First Session, Forty-first Parliament,
60-61 Elizabeth II, 2011-2012
BILL C-421
An Act to amend the Income Tax Act (nitrate reduction)

first reading, May 7, 2012

Ms. Crowder


This enactment provides a tax deduction for farmers and other landowners who establish a vegetative buffer zone to separate their real property from adjacent water bodies.

Also available on the Parliament of Canada Web Site at the following address:

1st Session, 41st Parliament,
60-61 Elizabeth II, 2011-2012
house of commons of canada
BILL C-421
An Act to amend the Income Tax Act (nitrate reduction)
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
Short title
1. This Act may be cited as the Nitrate Reduction Act.
R.S., c. 1 (5th Supp.)
2. The Income Tax Act is amended by adding the following after section 60.2:
60.3 (1) The definitions in this subsection apply in this section.
“eligible real property”
« bien immeuble admissible »
“eligible real property” means real property
(a) that is adjacent to a water body;
(b) that is utilized to produce income through agricultural or other uses; and
(c) on which fertilizer is customarily applied in the course of utilizing the property for the purpose of producing income.
“water body”
« plan d’eau »
“water body” includes any canal, reservoir, river, stream, lake or pond.
(2) For the purpose of computing the income for a taxation year of a taxpayer who owns eligible real property, there may be deducted from the income of the taxpayer derived from utilizing that property in the taxation year an amount determined in accordance with the regulations if, during the taxation year, the taxpayer
(a) has maintained a vegetative buffer zone between the property and an adjacent water body that is at least nine metres in depth and on which no fertilizer containing nitrates has been applied; and
(b) meets all other applicable requirements set out in the regulations.
(3) The Governor in Council may make regulations to carry out the purposes of this section.
Published under authority of the Speaker of the House of Commons
Available from:
Publishing and Depository Services
Public Works and Government Services Canada