Natural Gas Superhighway Act, 2013 Bailey, Robert — Bill 97 (40th Parliament, 2nd Session)

Bill 97, 40-2

Ontario — Bills

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Bill 97, Natural Gas Superhighway Act, 2013

Bailey, Robert

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[40] Bill 97 Original (PDF)

Bill 97 2013

Act to encourage the purchase of vehicles that use natural gas as a fuel

Preamble

Since

the development of two of North America's first commercial oil wells near Oil

Springs and Petrolia, Ontario, our province has been at the forefront of developing

affordable and reliable energy resources for Ontario's residents and

businesses.

order to meet the demand for an affordable, clean and safe source of fuel for

future generations, businesses and governments are now exploring the

transformative potential of natural gas as a transportation fuel for North

America's energy dependent trucking and manufacturing sectors.

The

recent development of the vast shale gas deposits in North America has driven

demand for what is becoming a readily available domestic fuel source that has

historically been priced lower than oil. Estimates of the North American gas

fields suggest accessible deposits of natural gas could meet North American

demand for the next 100 years.

a transportation fuel, natural gas (including both compressed natural gas and

liquefied natural gas) represents a cleaner and lower cost alternative to

traditional fuels and a viable solution to increased consumer costs.

While

the initial costs to purchase natural gas vehicles can be higher for operators,

the overall savings associated with using natural gas make switching an

attractive option. With an expected fuel cost savings of 20 to 30 per cent,

major American trucking companies are already taking the important first steps

to transition to natural gas as a fuel source. Moreover, private investment is

growing a network of dedicated fuelling stations across the United States,

linking important manufacturing regions and transportation corridors.

The

Province of Quebec has taken an early lead by offering fiscal incentives to

encourage fleets to purchase natural gas vehicles. If Ontario does not take

steps soon to open its borders to the same type of investment, it risks being

left behind and our businesses will lose their ability to get their products to

market at competitive prices. The best way to encourage fleets to adopt low

carbon emission natural gas vehicles is to reduce the financial risk by

offering a time limited, non-refundable tax credit for the purchase of vehicles

that use natural gas as a fuel and to ensure that weight limits on roads are

adjusted to accommodate the added weight of liquefied natural gas vehicles.

Therefore,

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

the Province of Ontario, enacts as follows:

Highway Traffic Act

1. The

Highway Traffic Act is amended by adding the

following section:

Regulations,

vehicles that use liquefied natural gas as a fuel

126.1

(1) The

Lieutenant Governor in Council may make regulations prescribing weight limits,

other than those specified or referred to in any provision in this Part, that

apply to vehicles that use liquefied natural gas as a fuel.

Where

weights set by regulation apply

(2) A weight limit prescribed under

subsection (1) applies to vehicles that use liquefied natural gas as a fuel instead

of the weights specified or referred to in a particular provision in this Part.

Tabling

report in Assembly

(3) Unless a regulation is made under

subsection (1), the Minister shall, on every anniversary of the day th e Natural Gas Superhighway Act, 2013 rec eives

Royal Assent, table a report in the Legislative Assembly that includes reasons

why such a regulation has not been made and the progress that has been made in

developing the regulation.

Taxation Act, 2007

2. The

Taxation Act, 2007 is amended by adding the

following Part:

Part

v.9

tax credit for vehicles that use Natural Gas as a fuel

Tax

credit for vehicles that use natural gas as a fuel

Definition

104.42

(1) In

this section,

"qualifying

vehicle" means a vehicle that uses natural gas as a fuel, other than a type or

class of vehicle prescribed by the Minister of Finance.

Amount

of tax credit

(2) A taxpayer may deduct from the amount

of tax otherwise payable under this Act for a taxation year ending after this

section comes into force, a tax credit not exceeding the lesser of,

(

a) the

amount of tax payable by the taxpayer under this Act for the year before making

the deduction under this section; and

(

b) the

taxpayer's eligible amount for the year as determined under subsection (3).

Eligible

amount

(3) A taxpayer's eligible amount for a

taxation year is determined as follows:

1. Determine

the sum of the taxpayer's eligible expenditures made in the year and in the

previous five taxation years.

2. Determine

the sum of the amounts, if any, deducted under this

section for the previous

five taxation years.

3. Deduct

the amount determined under paragraph 2 from the amount determined under

paragraph 1 to determine the eligible natural gas amount for the year.

Eligible

expenditure

(4) An eligible expenditure means half of

the amount of the tax payable under subsection 165 (2) of the Excise Tax Act (Canada) that the taxpayer paid in respect

of the purchase of a qualifying vehicle, if the amount is paid in or after the

first taxation year ending after this

section comes into force but before the end

of the seventh taxation year after this

section comes into force.

Partnerships

(5) If a taxpayer is a partner in a

partnership, but is not a limited partner, and the partnership would qualify

for a fiscal period ending in a taxation year of the partner for a tax credit

under this

section if the partnership were a corporation or an individual and

its fiscal period were its taxation year, the portion of the partnership's

eligible amount that may reasonably be considered to be the partner's share of

that amount may be included in determining the partner's total eligible amount

for the partner's taxation year.

Application

(6) This

section does not apply unless the

Federal Minister has agreed to make the amendments to the collection agreement

referred to in subsection 161 (1) that are necessary to authorize the

administration of the tax credit under this

section by the Canada Revenue

Agency on behalf of the Minister of Finance.

Commencement

3. This

Act comes into force on the day it receives Royal Assent.

Short

title

4. The

short title of this Act is the Natural Gas Superhighway Act,

2013 .

EXPLANATORY

NOTE

The

Bill amends the Highway Traffic Act and the Taxation Act, 2007 .

Part

VIII of the Highway Traffic Act currently sets out

weight limits for vehicles. New

section 126.1 of the Act enables the

Lieutenant Governor in Council to make regulations prescribing different weight

limits for vehicles that use liquefied natural gas as a fuel. The Minister of

Transportation is required to table a progress report in the Legislative

Assembly every year until a regulation is made.

The

Taxation Act, 2007 is amended to provide for a

non-refundable tax credit to taxpayers who purchase certain vehicles that use

natural gas as a fuel. The tax credit is equal to half of the Ontario portion

of the HST that the taxpayer paid for the vehicle. To qualify, the HST on the

vehicle must be paid within a period of seven taxation years, beginning with

the first taxation year that ends after the Bill receives Royal Assent. Any

unused tax credits in a taxation year may be carried forward and deducted in

the following five years.

Date Bill stage Activity Committee

September 26, 2013

Ordered referred to Standing Committee

Standing Committee on Government Agencies

September 26, 2013

Second Reading

Carried

September 26, 2013

Second Reading

Debate

September 10, 2013

First Reading

Carried

Debates and Progress

First Reading

September 10, 2013

Committee

Second Reading

September 26, 2013

Mr. Robert Bailey, Mr. Jonah Schein, Mr. Kevin Daniel Flynn, Mr. Michael Harris, Hon. Tracy MacCharles, Mrs. Jane McKenna, Mr. Jeff Leal, Mr. John O’Toole

September 26, 2013

Declared carried. Referred to the Standing Committee on Government Agencies.

Committee

Standing Committee on Government Agencies

Third Reading

Royal Assent

Acts affected - Bill 97

Most Ontario public acts are available electronically; to view copies of the Acts to be amended by this bill visit e-laws

Highway Traffic Act

Taxation Act, 2007

Legislative Assembly of Ontario

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Document details

Collection	Ontario — Bills
Citation	Bill 97, 40-2
Type	bill
Volume / chapter	p40 s2 bill 97 html
Language	en
Format	html
Source	PROVINCIAL
Identifier	6c09d21a1ee29bbc8da5cf30960e9648debe5c28

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