Notice of Ways and Means Motion to amend the Income Tax Act

The new legislation restricting the availability of the stock option deduction under 110(1)(d) is out. Very roughly speaking securities issued by corporations other than CCPCs or other corporations meeting other prescribed criteria are ineligible for the 110(1)(d) deduction for options in excess of an amount set out in the formula (roughly $200K per vesting year but with certain modifications). It seems as though the government couldn’t define the criteria that would make a company non-qualifying and will accomplish this by regulation. Also it looks like 110(1)(d.1) wasn’t touched (which is somewhat interesting as you could have a very large CCPC – the only downside is the the two year hold). Any thoughts?