New Zealand Legislation: Bills
Bills are proposed Acts
After section CB 35, the following is added:
“Emissions units under Climate Change Response Act 2002
“CB 36 Disposal of emissions units
“When this section applies
“(1) This section applies when a person disposes of an emissions unit.
“Income
“(2) The amount that the person derives on the disposal is income.
“Surrender of unit: generally no income
“(3) If the disposal is by surrender under the Climate Change Response Act 2002, the person is treated as having sold the unit, at the time of the surrender, to an unrelated person for an amount equal to the unit's cost, except if 1 of subsections (4) and (5) applies.
“Surrender of unit: post-1989 forest land deforestation
“(4) Despite subsection (3), the person is treated as deriving income of zero if the person surrenders the emissions unit in relation to the deforestation of post-1989 forest land.
“Surrender of unit: deforestation of some pre-1990 forest land
“(5) Despite subsection (3), the person is treated as deriving income of zero if—
“(a) the person surrenders the emissions unit in relation to the deforestation of pre-1990 forest land; and
“(b) the person would derive income, other than exempt income or excluded income, from a disposal of the land without timber at the time of the surrender.
“Converted unit treated as sold
“(6) If a person converts a New Zealand emissions unit, other than a forest land emissions unit, into a Kyoto emissions unit under the Climate Change Response Act 2002, the person is treated as having sold the converted unit for an amount equal to the unit's cost.
“Exempt income: pre-1990 forest land unit
“(7) Section CW 3B (Pre-1990 forest land emissions units) applies to the disposal to another person of a pre-1990 forest land emissions unit.
“Disposal at below market value
“(8) Section GC 4B (Disposals of emissions units at below market value) may apply to treat a disposal, other than a surrender, as being for market value.
“Defined in this Act: amount, convert, emissions unit, forest land emissions unit, income, Kyoto emissions unit, New Zealand emissions unit, pre-1990 forest land emissions unit, post-1989 forest land emissions unit, surrender”.
