Capital Investment Account for LNG Income Tax

Your capital investment account (CIA) is the cumulative balance of the capital cost of all your capital investment property you invested at an LNG facility or used for liquefaction activities. Capital investment property includes:

  • tangible property used for liquefaction activities at the LNG facility
  • intangible property used for liquefaction activities related to the LNG facility, such as permits, licenses and intellectual property
  • the feedstock spur pipeline
  • tangible property used on land under or contiguous to an LNG plant, by a person engaging in liquefaction activities, for constructing, administering or maintaining an LNG plant or supporting the operations of the plant

Capital investment property doesn't include:

  • Inventory
  • A share
  • An interest in a partnership or trust
  • A bond, debenture, bill of exchange, note, mortgage or similar obligation

You’re responsible for maintaining the balance of your CIA by tracking allowable additions and deductions.

You deduct your CIA balance to calculate your net income. When calculating your net income, you must deduct any balance in your net operating loss account before any amount in your capital investment account can be used to calculate your net income.


Partnerships engaged in liquefaction activities must keep track of the partnership’s CIA. Partners are allocated their share of the CIA each year.

Negative CIA Balance

A negative balance in your CIA at the end of a taxation year generally means that proceeds from dispositions of your capital investment property throughout the year are greater than the balance of your CIA at the beginning of the taxation year, plus the capital cost of any capital investment property you acquired during the year.

You must recapture a negative CIA balance as income when calculating your net income for the taxation year.

After you recapture your negative CIA balance as income, your CIA resets to zero for the next year.