Technology for Classrooms Tax Credit Statute Law Amendment Act, 2001 Hastings, John — Bill 64 (37th Parliament, 3rd Session)

Bill 64, 37-3

Ontario — Bills

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Bill 64, Technology for Classrooms Tax Credit Statute Law Amendment Act, 2001

Hastings, John

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[37] Bill 64 Original (PDF)

Bill 64 2001

An Act to amend

the Corporations Tax Act,

the Education Act

and the Income Tax Act

Her Majesty, by and with the advice and consent of the Legislative

Assembly of the Province of Ontario, enacts as follows:

PART I

AMENDMENT TO THE

CORPORATIONS TAX ACT

1. The Corporations Tax Act is amended by

adding the following section:

Technology for classrooms

tax credit

41.2

(1) A corporation that

donates eligible computer property to a school board in a taxation year

commencing after this

section comes into force may deduct an amount

determined under subsection (2) from its tax otherwise payable under this

Part for the taxation year, before making any deductions under sections 39,

40, 41, 43 and 43.3 to 43.12 for the taxation year, if the following

conditions are satisfied:

1. No consideration is paid or payable, directly or indirectly, for the

donated property.

2. The corporation acquired the property as new no earlier than 36 months

before the commencement of the taxation year.

3. The corporation used the property for the purposes of earning income

from a business or property.

4. The school board accepts the donation of the property.

Amount of tax credit

(2) The amount of a corporation's tax credit under this

section

for a taxation year is the lesser of the corporation's notional undepreciated

capital cost immediately before the donation of the eligible computer

property and the amount determined using the formula:

A × B/C × D

in which,

"A" is the amount of tax payable under this Part for the taxation year

before the deduction of any amounts to which the corporation is entitled

under sections 39, 40, 41, 43 and 43.3 to 43.12;

"B" is the amount of the corporation's income from business or property

for the taxation year;

"C" is the amount of the corporation's income for the taxation year;

and

"D" is the fraction that would be the corporation's Ontario allocation

factor for the taxation year, within the meaning of

section 12.

Notional undepreciated capital cost

(3) The corporation's notional undepreciated capital cost of

the eligible computer property is the amount determined under the following

rules:

1. If the property is the only depreciable property included by the

corporation in a class prescribed by the regulations made under the

Income Tax Act (Canada), the notional undepreciated capital cost of

the property is the undepreciated capital cost to the corporation of

depreciable property of that class, as determined for the purposes of this

Act, immediately before the donation.

2. If the property is not the only depreciable property included by the

corporation in a class prescribed by those regulations, the notional

undepreciated capital cost of the property is the amount determined under the

prescribed rules.

Supporting documentation

(4) A corporation that claims a deduction under this

section

shall deliver, with the annual return required under

section 75 for the

taxation year in which the donation is made,

(

a) such material as the Provincial Minister may direct to prove the date

of acquisition by the corporation of the donated property and that the

property is eligible computer property; and

(

b) the certificate in respect of the property, issued by the school board

under paragraph 17.2 of subsection 170 (1) of the Education Act .

Definitions

(5) In this section,

"eligible computer property" means, in respect of a corporation, computer

software or hardware,

(

a) that is depreciable property of a class prescribed by the regulations

made under the Income Tax Act (Canada),

(

b) that has not been used, or acquired for use or lease, for any purpose

before it was acquired by the corporation, and

(

c) that satisfies the prescribed rules; ("biens informatiques

admissibles")

"school board" means a board within the meaning of the Education

Act ; ("conseil scolaire")

"undepreciated capital cost" has the meaning given by subsection 248

(1) of the Income Tax Act (Canada). ("fraction non amortie du coût

en capital")

Regulations

(6) The Lieutenant Governor in Council may make regulations

prescribing rules for determining the amount of a tax credit, if any, that

may be claimed under this

section by a corporation in respect of eligible

computer property donated to a school board by a partnership of which the

corporation is a member.

PART II

AMENDMENT TO THE

EDUCATION ACT

2. Subsection 170 (1) of the Education Act , as

amended by the Statutes of Ontario, 1993,

chapter 11,

section 30, 1996,

chapter 11,

section 29, 1996,

chapter 12,

section 64, 1996,

chapter 13,

section 5, 1997,

chapter 31,

section 80 and 2000,

chapter 11,

section 3, is

further amended by adding the following paragraphs:

17.2 upon accepting a donation mentioned in

section 41.2 of the

Corporations Tax Act or subsection 8 (8.6) of the Income Tax

Act , issue a certificate to the donor in a form approved by the Minister

of Finance, stating that the board accepts the donation and the date on

acceptance and containing any other information the Minister of Finance may

specify;

17.3 to the extent reasonably possible, use the computer hardware or

software that it receives as a donation mentioned in paragraph 17.2 in the

classroom for the purposes of the instruction of pupils in,

i. the schools under its charge that the donor specifies, if the donor

specifies any schools in connection with the donation, or

ii. schools under its charge, if the donor does not specify any schools in

the donation;

PART III

AMENDMENT TO THE

INCOME TAX ACT

Section 8 of the Income Tax Act, as amended

by the Statutes of Ontario, 1992,

chapter 18,

section 55, 1992,

chapter 25,

section 3, 1993,

chapter 29,

section 6, 1994,

chapter 17,

section 99, 1996,

chapter 1,

Schedule C,

section 8, 1996,

chapter 24,

section 13, 1996,

chapter

29,

section 9, 1997,

chapter 19,

section 9, 1997,

chapter 43,

Schedule B,

section 4, 1998,

chapter 5,

section 3, 1998,

chapter 9,

section 81, 1998,

chapter 34,

section 69, 1999,

chapter 9,

section 120 and 2000,

chapter 42,

section 55, is further amended by adding the following

subsections:

Technology for classrooms

tax credit

(8.6) A taxpayer who donates eligible computer property to a

school board in a taxation year commencing after this

section comes into

force may deduct an amount determined under subsection (8.7) from the amount

of tax otherwise payable under this Part for the taxation year before the

deduction of any amounts to which the taxpayer is entitled under subsection

(3), (3.1), (4), (9), (15), (15.1), (15.2), (15.3) or (15.4), if the

following conditions are satisfied:

1. No consideration is paid or payable, directly or indirectly, for the

donated property.

2. The taxpayer acquired the property as new no earlier than 36 months

before the commencement of the taxation year.

3. The taxpayer used the property for the purposes of earning income from

a business or property.

4. The school board accepts the donation of the property.

Amount of tax credit

(8.7) The amount of a taxpayer's tax credit under subsection

(8.6) is the lesser of the notional undepreciated capital cost of the

eligible computer property immediately before the donation and the amount

determined using the formula:

A × B/C

in which,

"A" is the amount of tax payable under this Part for the taxation year

before the deduction of any amounts to which the taxpayer is entitled under

subsection (3), (3.1), (4), (9), (15), (15.1), (15.2), (15.3) or (15.4);

"B" is the product determined by multiplying the amount of the taxpayer's

income from business or property for the taxation year as determined under

the Federal Act by the taxpayer's Ontario allocation factor for the taxation

year, within the meaning of

section 4; and

"C" is the amount of the taxpayer's income earned in the taxation year in

Ontario, within the meaning of

section 4.

Notional undepreciated capital cost

(8.8) The taxpayer's notional undepreciated capital cost of the

eligible computer property is the amount determined under the following

rules:

1. If the property is the only depreciable property included by the

taxpayer in a class prescribed by the Federal Regulations, the notional

undepreciated capital cost of the property is the undepreciated capital cost

to the taxpayer of depreciable property of the class immediately before the

donation.

2. If the property is not the only depreciable property included by the

taxpayer in a class prescribed by the Federal Regulations, the notional

undepreciated capital cost of the property is the amount determined under the

prescribed rules.

Supporting documentation

(8.9) A taxpayer who claims a deduction under subsection

(8.6) shall file, with the annual return for the taxation year in which the

taxpayer claims the deduction,

(

a) such material as the Provincial Minister may direct to prove the date

of acquisition by the taxpayer of the donated property and that the property

is eligible computer property; and

(

b) the certificate in respect of the property, issued by the school board

under paragraph 17.2 of subsection 170 (1) of the Education Act .

Regulations

(8.10 ) The Lieutenant Governor in Council may make regulations

prescribing rules for determining the amount of a tax credit, if any, that

may be claimed under subsection (8.6) by a taxpayer in respect of eligible

computer property donated to a school board by a partnership of which the

taxpayer is a member.

Definitions

(8.11) For the purposes of subsections (8.6) to (8.10),

"eligible computer property" means, in respect of a taxpayer, computer

software or hardware,

(

a) that is depreciable property of a class prescribed by the Federal

Regulations,

(

b) that has not been used, or acquired for use or lease, for any purpose

before it was acquired by the taxpayer, and

(

c) that satisfies the prescribed rules; ("biens informatiques

admissibles")

"school board" means a board within the meaning of the Education

Act ; ("conseil scolaire")

"undepreciated capital cost" has the meaning given by subsection 248

(1) of the Federal Act. ("fraction non amortie du coût en capital")

Commencement

4. This Act comes into force on the day it receives

Royal Assent.

Short title

5. The

short title of this Act is the Technology

for Classrooms Tax Credit Statute Law Amendment Act, 2001.

EXPLANATORY NOTE

The Bill would amend the Corporations Tax Act and the Income

Tax Act to establish a tax credit for a taxpayer who donates eligible

computer property to a school board if the board accepts the donation. The

tax credit would be in the amount of the taxpayer's undepreciated capital

cost of the computer property immediately before the donation. The eligible

computer property must have been acquired new by the taxpayer no earlier than

36 months before the taxation year in which the donation is made. Regulations

would be made under the Act to limit the type of computer property eligible

for the tax credit and to provide rules for determining the amount that a

partner may claim on a donation by the partnership.

The Bill would also amend the Education Act to provide that a

school board that accepts the donation of eligible computer property is

required, to the extent reasonably possible, to use the property in the

classroom for the purposes of instruction of pupils in the board's schools

and, specifically, in any schools of the board that the donor may specify in

connection with the donation.

Date Bill stage Activity Committee

December 5, 2001

Ordered carried over from previous session

December 5, 2001

Carried over to next session

May 31, 2001

First Reading

Carr

Document details

Collection	Ontario — Bills
Citation	Bill 64, 37-3
Type	bill
Volume / chapter	p37 s3 bill 64 html
Language	en
Format	html
Source	PROVINCIAL
Identifier	0bb794727332d213d8928ba61cf2a13a09ec6d0f

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