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DB 59: Market value substituted
or “Limits on deductions when prices don't match market value”
You could also call this:

“Tax rules for receiving free emissions units”

When you get an emissions unit for free, you can’t claim a tax deduction for it. This rule applies in two situations:

  1. If you receive the emissions unit under section 64, or Part 4, subpart 2, of the Climate Change Response Act 2002.

  2. If you receive the emissions unit under a permanent forestry scheme.

Even if you spend money or lose something to get the free emissions unit, you can’t claim it as a tax deduction. This rule overrides the general permission that usually allows deductions.

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Next up: DB 60B: Liabilities for emissions

or “No tax deductions for certain emission-related costs in forestry”
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Part D Deductions
Specific rules for expenditure types

DB 60Acquisition of emissions units

  1. This section applies when an emissions unit is transferred to a person for a price of zero—

  2. under section 64, or Part 4, subpart 2, of the Climate Change Response Act 2002:
    1. under a permanent forestry scheme.

      1. The person is denied a deduction for an amount of expenditure or loss incurred as consideration for the emissions unit.

      2. Subsection (2) overrides the general permission.

      Notes
      • Section DB 60: substituted (with effect on 1 January 2009), on , by section 80 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section DB 60(1): substituted (with effect on 1 January 2009), on , by section 20 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
      • Section DB 60(1)(b): replaced, on , by section 279 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).
      • Section DB 60 list of defined terms permanent forestry scheme: inserted, on , by section 279 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).