Second Session, 44th General Assembly

49 Elizabeth II, 2000

BILL 22

AN ACT

AN ACT TO AMEND

THE INCOME TAX ACT

Received and

Read the First Time

Second Reading

Committee

Third Reading

Royal Assent

HONOURABLE LLOYD MATTHEWS

Minister of Finance

Ordered to be printed by the

Honourable House of Assembly

EXPLANATORY NOTE

This Bill would amend the Income Tax Act to

provide for an equity tax credit.

A BILL

AN ACT TO AMEND THE INCOME TAX ACT

Analysis

1. S.8.2 Added

Equity tax credit

2. Commencement

Be it enacted by the

Lieutenant-Governor and House of Assembly in Legislative

Session convened, as follows:

RSN1990 cI-1

1. The Income Tax Act is amended by adding

immediately after

section 8.1 the following:

Equity tax credit

8.2

(1) An eligible investor may apply to the

minister for a non refundable tax credit in respect of an eligible

investment in an eligible corporation.

(2) The minister may give a tax credit to a

person who applies under subsection (1).

(3) A tax credit given under subsection (2) shall

be calculated in the manner prescribed by the regulations.

(4) A tax credit shall be deducted against the

tax which is otherwise payable under this Act.

(5) The Lieutenant-Governor in Council may make

regulations

(

a) establishing the criteria for

determining who is an eligible investor, what corporation is

an eligible corporation and what investments are eligible

investments;

(

b) respecting the issuance of and the

grounds for revocation of certificates of eligibility to

corporations;

(

c) limiting the amounts which an

eligible corporation may raise through the use of credits;

(

d) prescribing how funds raised may be

used by a corporation;

(

e) respecting the wind-up and

dissolution of an eligible corporation;

(

f) setting the amount of a tax credit

that may be paid to an eligible investor;

(

g) setting limits on the amounts of

eligible investments;

(

h) respecting the carrying forward or

back of a credit;

(

i) respecting the holding period for an

eligible investment;

(

j) prescribing penalties for failure to

comply with the regulations; and

(

k) generally to give effect to the

purpose of this section.

Commencement

2. This Act comes into force on a day to be proclaimed

by the Lieutenant-Governor in Council.

Earl G. Tucker, Queen's Printer