First

Session, 51st General Assembly

Charles III, 2026

BILL 17

AN ACT TO AMEND THE

INCOME TAX ACT, 2000 NO. 2

Received

and Read the First Time ................................................................

Second

Reading ............................................................................................

Committee .....................................................................................................

Third

Reading ...............................................................................................

Royal

Assent .................................................................................................

HONOURABLE CRAIG

PARDY

Minister of Finance and President of Treasury Board

Ordered to be printed by

the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would amend the Income Tax Act, 2000 to

extend eligibility for the

Newfoundland and Labrador Child Benefit in respect of a deceased child for 6

months after the death of the child;

allow unused manufacturing and

processing investment tax credits and unused green technology tax credits of an

eligible corporation to be used by a new corporation created by the

amalgamation of the eligible corporation with one or more other corporations;

allow unused manufacturing and

processing investment tax credits and unused green technology tax credits of an

eligible corporation to be used by the eligible corporation's parent

corporation where the eligible corporation is wound up;

prescribe the green technology

tax credit limit for associated corporations with more than one taxation year

in a calendar year;

prescribe the green technology

tax credit limit for eligible corporations with taxation years that are less

than 51 weeks; and

require that a film or video

industry tax credit that exceeds the tax payable by a corporation in a taxation

year be refunded to the corporation.

A BILL

AN ACT TO AMEND THE INCOME TAX ACT, 2000 NO. 2

Analysis

S.38 Amdt .

Newfoundland and Labrador child tax benefit

S.41.1 Amdt .

Manufacturing and processing investment tax credit

S.41.2 Amdt .

Green technology tax credit

S.45 Amdt .

Film or video tax credit

Commencement

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

SNL2000 cI-1.1

as amended

1. (1) Subsection 38(5) of the Income Tax Act, 2000 is repealed and the

following substituted:

(5) Subsection

122.61(2), paragraph 122.61(3)(a), subsection 122.61(3.1) and subsections

122.62(1), (2), (4), (5), (6), (9) and (10) of the federal Act apply for the

purpose of this section.

(2) Notwithstanding subsection 3(3) of the Act,

subsections 122.62(9) and (10) of the federal Act apply in respect of the death

of a person that occurs on or after July 1,

Section

41.1 of the Act is amended by adding immediately after subsection (7) the

following:

(8) Where

2 or more corporations amalgamate within the meaning of subsection 87(1) of the

federal Act and one or more of the corporations had a manufacturing and processing investment tax credit for

any taxation year, any portion of which was not deducted by it in computing its

tax otherwise payable under this Act for any taxation year, for the purpose of

determining the manufacturing and

processing investment tax credit of the new eligible corporation for a taxation

year preceding any taxation year of the new eligible corporation, the new eligible

corporation shall be considered to be the same corporation as, and a

continuation of, each such predecessor eligible corporation.

(9) Where

(

a) a subsidiary, within

the meaning assigned by subsection 88(1) of the federal Act, is wound up and

that subsection applies to the winding-up; and

(

b) at

the end of the last taxation year of the subsidiary it had a manufacturing and processing investment tax

credit, any portion of which was not deducted in

computing its tax otherwise payable under this Act by it for the year,

for the purpose of applying this section, the parent, within the meaning assigned by subsection 88(1)

of the federal Act, shall be considered to be the same person as, and a continuation

of, the subsidiary.

(1) Subparagraph 41.2(1)(d)(ii) of the Act is repealed

and the following substituted:

(ii) the

eligible corporation's tax credit limit for the taxation year;

(2) Section

41.2 of the Act is amended by adding immediately after subsection (2) the

following:

(2.1) Notwithstanding

subsection (2),

(

a) where an eligible corporation, in this paragraph referred to as the "first

eligible corporation", has

more than one taxation year ending in the same calendar year and it is

associated in 2 or more of those taxation years with another eligible corporation

that has a taxation year ending in that calendar year, the first eligible

corporation's tax credit limit for each taxation year ending in that calendar

year in which it is associated with the other eligible corporation is, subject

to the application of paragraph (b), an amount equal to the first eligible

corporation's tax credit limit for the first such taxation year determined

without reference to paragraph (b); and

(

b) where

an eligible corporation has a taxation year that is less than 51 weeks, the

eligible corporation's tax credit limit for the taxation year is that

proportion of the eligible corporation's tax credit limit determined without

reference to this paragraph that the number of days in the taxation year is of

(3) Section 41.2 of the Act is amended by adding

immediately after subsection (8) the following:

(9) Where

2 or more corporations amalgamate within the meaning of subsection 87(1) of the

federal Act and one or more of the corporations had a green technology tax credit for any taxation year, any portion of which was not deducted by it in

computing its tax otherwise payable under this Act for any taxation year, for

the purpose of determining the green

technology tax credit of the new eligible

corporation for a taxation year preceding any taxation year of the new eligible

corporation, the new eligible corporation shall be considered to be the same corporation

as, and a continuation of, each such predecessor eligible corporation.

(10) Where

(

a) a subsidiary, within

the meaning assigned by subsection 88(1) of the federal Act, is wound up and

that subsection applies to the winding-up; and

(

b) at

the end of the last taxation year of the subsidiary it had a green technology tax credit, any portion of which was not deducted in computing its tax otherwise

payable under this Act by it for the year,

for the purpose of applying this section, the parent, within the meaning assigned by subsection 88(1)

of the federal Act, shall be considered to be

the same person as, and a continuation of, the subsidiary.

4. Subsection 45(4) of the Act is repealed and the

following substituted:

(4) Where

the tax credit calculated in accordance with subsection (2) exceeds the tax

otherwise payable under this Act, the amount of the excess shall be refunded to

the corporation.

Commencement

Section 1 comes into force on July 1, 2026.

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