(1) Despite the Income Tax Act where an approved developer carrying on a business in an income year has made a capital expenditure in that year on an industrial building or structure used or to be used in that business for some purpose other than resale, then in calculating the assessable income of that person for that income year there shall be deducted as an initial allowance in respect of that income year an amount equal to 40% of the capital expenditure on an industrial building or structure.
(2) Despite the Income Tax Act where an approved developer carrying on a business has made a capital expenditure on an industrial building or structure used or to be used in that business for some purpose other than resale, referred to as depreciable property, then in calculating the assessable income of the approved developer for an income year, an amount may, at the option of the approved developer be deducted as an annual allowance equal to 5% of that capital expenditure.