Bill 140 2013

An Act to amend the Taxation Act, 2007 to implement a promoting educational success tax credit

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

   1.  The Taxation Act, 2007 is amended by adding the following Part:

Part IV.0.1
Promoting educational success tax credit

Promoting educational success tax credit

   103.1.2  (1)  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 a deduction under this section; and

  (b)  the amount equal to 25 per cent of the total of all amounts each of which is an eligible fee incurred by the taxpayer in the year.

Eligible fee

   (2)  An eligible fee means a fee paid, either directly or indirectly, by a taxpayer on behalf of a qualifying employee for the purpose of the employee,

  (a)  enrolling in a high school credit course under the distance education program established by the Ontario Educational Communications Authority under section 16 of the Ontario Educational Communications Authority Act; or

  (b)  registering to take the GED tests through the Ontario Educational Communications Authority.

Qualifying employee

   (3)  For the purposes of subsection (2), an individual is a qualifying employee of a taxpayer if he or she satisfies such criteria as may be prescribed by the Minister of Finance.

Partnerships

   (4)  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 individual and its fiscal period were its taxation year, the portion of the amount of the partnership's eligible fees that may reasonably be considered to be the partner's share of that amount may be included in determining the partner's total eligible fees for the partner's taxation year.

Application of section

   (5)  A taxpayer may only claim a credit under this section if the Federal Minister has agreed to make such amendments to the collection agreement referred to in subsection 161 (1) as are necessary to authorize the administration of the tax credit by the Canada Revenue Agency on behalf of the Minister of Finance.

Commencement

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

Short title

   3.  The short title of this Act is the Promoting Educational Success Tax Credit Act, 2013.

EXPLANATORY NOTE

The Bill amends the Taxation Act, 2007 to implement a promoting educational success tax credit.  The tax credit is non-refundable and is available to employers who pay the fees for qualifying employees to enrol in high school credit courses through correspondence or to register to take the GED tests.  The tax credit is 25 per cent of the fees paid by the employer.  A qualifying employee is an individual who satisfies such criteria as may be prescribed by the Minister of Finance.