Second

Session, 45th General Assembly

Elizabeth II, 2005

BILL 48

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

LOYOLA SULLIVAN

Minister

of Finance and President of Treasury Board

Ordered

to be printed by the Honourable House of Assembly

EXPLANATORY NOTES

Clause 1 of the Bill would amend the Income Tax Act, 2000 to provide for a

non-refundable tax credit for eligible adoption expenses up to a maximum of

$10,000, based upon the federal adoption tax credit.

Clause 2 of the Bill would amend

section 23 of the Act to include the new adoption tax credit in the ordering of

tax credits for the purpose of computing the income tax payable by an

individual under the Act.

A BILL

AN ACT TO AMEND THE INCOME TAX ACT, 2000

NO. 2

Analysis

S.17.1 Added

Adoption credit

S.23 Amdt.

Ordering of credits

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

SNL2000 cI-1.1

as amended

1. The Income

Tax Act, 2000 is amended by adding immediately after

section 17 the

following:

Adoption credit

17.1

(1) For

the purpose of computing the tax payable under this Part for a taxation year by

an individual who was resident in the province on the last day of the taxation

year, there may be deducted an amount determined by the formula:

A x B

where

A is the appropriate percentage for the year;

and

B is the amount that would be determined in the

formula in subsection 118.01(2) of the federal Act for B in computing the

individual's deduction under that

section for the year, if the amount in

paragraph 118.01(2)(

a) of the federal Act is read as $10,000.

(2) Section 118.01 of the federal Act applies for

the purpose of this Act, except that subsection (1) of this

section applies

instead of subsection 118.01(2) of the federal Act.

2. Subsection 23(2) of the Act is amended by

adding immediately after paragraph (

b) the following:

(b.1)

section 17.1;

Earl G. Tucker,

Queen's Printer