Bill 40

Bill 401999

An Act to amend the Education Act and the Income Tax Act to provide a tax credit for private sector investment in classroom technology

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

1.Subsection 170 (1) of the Education Act, as amended by the Statutes of Ontario, 1993, chapter 11, section 30, 1996, chapter 12, section 64, 1996, chapter 13, section 5 and 1997, chapter 31, section 80, is further amended by adding the following paragraphs:

17.2upon accepting a donation mentioned in subsection 8 (8.6) of the Income Tax Act from a taxpayer, issue a certificate to the taxpayer in the form approved by the Minister of Finance stating the fact that the board accepts the donation and the date on which the board accepts it;

17.3to the extent reasonably possible, use the computer hardware or software that it receives as a donation mentioned in subsection 8 (8.6) of the Income Tax Act in the classroom for the purpose of the instruction of pupils in,

i.the schools under its charge that the donor specifies, if the donor specifies such schools in the donation, or

ii.schools under its charge, if the donor does not specify any such schools in the donation.

2.(1)Section 8 of the Income Tax Act, as amended by the Statutes of Ontario, 1992, chapter 18, section 55, 1992, chapter 25, section 3, 1993, chapter 29, section 6, 1994, chapter 17, section 99, 1996, chapter 1, Schedule C, section 8, 1996, chapter 24, section 13, 1996, chapter 29, section 9, 1997, chapter 10, section 3, 1997, chapter 19, section 9 and 1997, chapter 43, Schedule B, section 4, is further amended by adding the following subsections:

Tax credit for computer donation

(8.6)A taxpayer who donates computer hardware or software for no consideration to a board within the meaning of the Education Act in a taxation year that ends after the year in which this subsection comes into force may deduct from the amount of tax otherwise payable under this Act on income from a business or property for the taxation year the amount of the capital cost of the property being donated that is undepreciated at the time of the donation if,

(a)the taxpayer acquired, as new, the property being donated no earlier than the third year before the taxation year; and

(b)the board accepts the donation.

Supporting documentation

(8.7)A taxpayer who claims a deduction under subsection (8.6) shall, in the annual return for the taxation year in which the taxpayer claims the deduction, file,

(a)proof, in a form approved by the Provincial Minister, showing the date of acquisition of the property being donated and the fact that the taxpayer acquired it as new property on that date; and

(b)the certificate that the board is required to issue to the taxpayer in the form approved by the Provincial Minister stating the fact that the board accepts the donation and the date on which the board accepts it.

Regulations

(8.8)The Lieutenant Governor in Council may make regulations specifying that certain classes or items of computer hardware or software to which the deduction described in subsection (8.6) does not apply.

(2)Subsection 8 (10) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 43, Schedule B, section 4, is amended by adding at the end "except if the amount relates to a deduction described in subsection (8.6)".

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 Technology for Classrooms Tax Credit Act, 1999.

EXPLANATORY NOTE

The Bill amends the Income Tax Act to permit taxpayers who donate computer property to a school board to obtain an income tax credit against their income from a business or property for the amount of the undepreciated capital cost of the computer property at the time of the donation if they acquired the property as new no earlier than the third year before the taxation year in which making the donation and the board accepts the donation. Regulations under the Act can limit the classes or items of computer property for which the donation gives rise to a tax credit.

Under an amendment to the Education Act, a school board that receives a donation of computer property is required, to the extent reasonably possible, to use it in the classroom for the purpose of the instruction of pupils in the schools under its charge, and specifically in the schools that the donor specifies in the donation, if applicable.