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DB 60: Acquisition of emissions units
or “Tax rules for receiving free emissions units”
You could also call this:

“No tax deductions for certain emission-related costs in forestry”

You can’t claim a deduction for certain liabilities related to emissions. This applies in two cases:

  1. If you have to pay for emissions from post-1989 forest land or pre-1990 forest land under the Climate Change Response Act 2002.

  2. If you have to give emissions units to the government as part of a permanent forestry scheme.

In both these cases, you’re not allowed to claim these costs as a deduction from your taxes. This rule overrides the general permission that usually allows you to claim deductions.

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Next up: DB 61: Surrender of certain emissions units for post-1989 forest land emissions

or “Using specific emissions units to meet obligations for post-1989 forest land”
Next

Part D Deductions
Specific rules for expenditure types

DB 60BLiabilities for emissions

  1. This section applies when a person incurs a liability—

  2. under the Climate Change Response Act 2002 for emissions relating to post-1989 forest land or pre-1990 forest land:
    1. to transfer emissions units to the Crown under a permanent forestry scheme.

      1. The person is denied a deduction for the liability.

      2. Subsection (2) overrides the general permission.

      Notes
      • Section DB 60B: inserted (with effect on 1 April 2008), on , by section 81(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section DB 60B(1): substituted (with effect on 1 January 2009), on , by section 21(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
      • Section DB 60B(1)(b): replaced, on , by section 279 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).
      • Section DB 60B list of defined terms emissions unit: inserted (with effect on 1 January 2009), on , by section 21(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
      • Section DB 60B 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).