Bill 104, Taxation Amendment Act (Food Bank Donation Tax Credit for Farmers), 2012

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Bill 104 2012

An Act to amend the Taxation Act, 2007 to provide a tax credit to farmers for donating to Ontario food banks certain agricultural products they produced

Note: This Act amends the Taxation Act, 2007. For the legislative history of the Act, see the Table of Consolidated Public Statutes - Detailed Legislative History at www.e-Laws.gov.on.ca.

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

1. Section 9 of the Taxation Act, 2007 is amended by adding the following subsection:

Exception re charitable donation tax credit

(21.1) If an individual claims a food bank donation tax credit under section 103.1.1 for a taxation year, the following rules apply:

1. The amount of "HH" in subsection (21) for the year is deemed to be the lesser of,

i. $200 minus four times the amount of the tax credit claimed under section 103.1.1 for the year, and

ii. that part of the individual's total gifts for the year under section 118.1 of the Federal Act that was used to determine the amount deducted by the individual for the year under subsection 118.1 (3) of that Act, minus four times the amount of the tax credit claimed under section 103.1.1 for the year.

2. The amount of "JJ" in subsection (21) for the year is deemed to be the amount determined under subparagraph 1 ii.

2. The Act is amended by adding the following Part:

Part IV.0.1
Non-Refundable Tax Credits

Food bank donation tax credit for farmers

103.1.1 (1) In this section,

"agricultural product" has the meaning prescribed by the regulations made under this section; ("produit agricole")

"eligible donation" means the wholesale value of an agricultural product produced in Ontario by an eligible farmer and donated by the eligible farmer to an eligible food bank in Ontario; ("don admissible")

"eligible farmer" means,

(a) an individual who, alone or with persons related to him or her, carries on the business of farming in Ontario, or

(b) a corporation that carries on the business of farming in Ontario; ("agriculteur admissible")

"eligible food bank" means a person or entity that,

(a) is registered as a charity under the Federal Act,

(b) is engaged in the distribution of food to the public without charge in Ontario, and

(c) satisfies the other conditions that are prescribed by the regulations made under this section. ("banque alimentaire admissible")

Amount of the tax credit

(2) An eligible farmer may deduct from the amount of tax otherwise payable under this Act, for a taxation year ending after this section comes into force, a food bank donation tax credit not exceeding the lesser of,

(a) the amount of tax payable by the eligible farmer under this Act for the year before making a deduction under this section; and

(b) the eligible farmer's food bank donation amount for the year as determined under subsection (3).

Food bank donation amount

(3) An eligible farmer's food bank donation amount for a taxation year is determined as follows:

1. Determine the sum of the eligible farmer's eligible donations made in the year and in the previous five taxation years.

2. Multiply the amount determined under paragraph 1 by 25 per cent.

3. Determine the sum of the amounts, if any, deducted under this section for the previous five taxation years.

4. Deduct the amount determined under paragraph 3 from the amount determined under paragraph 2 to determine the food bank donation amount for the year.

Partnerships

(4) If a corporation or individual 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 food bank donation tax credit if the partnership were a corporation or individual and its fiscal period were its taxation year, the portion of the partnership's food bank donation amount that may reasonably be considered to be the partner's share of that amount may be included in determining the partner's total food bank donation amount for the partner's taxation year.

Regulations

(5) The Minister of Finance may make regulations for the purposes of this section,

(a) prescribing agricultural products;

(b) prescribing rules for determining the wholesale value of agricultural products;

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 a day to be named by proclamation of the Lieutenant Governor.

Short title

4. The short title of this Act is the Taxation Amendment Act (Food Bank Donation Tax Credit for Farmers), 2012.

EXPLANATORY NOTE

The Bill amends the Taxation Act, 2007 to provide a non-refundable tax credit to eligible Ontario farmers who donate certain agricultural products they produced to Ontario food banks. The tax credit is 25 per cent of the wholesale value of the donated agricultural products. Unused tax credits may be carried forward and deducted in the following five years. If the tax credit is claimed for a year, no charitable donation tax credit may be claimed in respect of the donated agricultural products.