Bill 53 2003

An Act respecting the
equity in education tax credit

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

1. Subsection 8.4.2 (3) of the Income Tax Act, as enacted by the Statutes of Ontario, 2001, chapter 8, section 41 and amended by 2002, chapter 22, section 109, is repealed and the following substituted:

Appropriate percentage

(3) For the purposes of "A" in subsection (2), the following is the appropriate percentage for the taxation year indicated:

1. For a taxation year that commences after December 31, 2001 and ends before January 1, 2003, 10 per cent.

2. For a taxation year that commences after December 31, 2002 and ends before January 1, 2004, 20 per cent.

3. For a taxation year that commences after December 31, 2003 and ends before January 1, 2005, 30 per cent.

4. For a taxation year that commences after December 31, 2004 and ends before January 1, 2006, 40 per cent.

5. For a taxation year that commences after December 31, 2005, 50 per cent.

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 Right Choices for Equity in Education Act (Budget Measures), 2003.

EXPLANATORY NOTE

This Explanatory Note was written as a reader's aid to Bill 53 and does not form part of the law. Bill 53 has been enacted as Chapter 5 of the Statutes of Ontario, 2003.

Section 8.4.2 of the Income Tax Act establishes the equity in education tax credit. The Bill re-enacts subsection 8.4.2 (3) which sets out the phase-in of the rate of the tax credit. The tax credit is calculated as a percentage of eligible fees. Eligible fees are the lesser of the tuition fees paid and $7,000 per child ($3,500 for a child of kindergarten age).

The amendment provides that the rate of the tax credit will be 20 per cent for 2003, 30 per cent for 2004, 40 per cent for 2005 and 50 per cent for 2006 and subsequent years.

Bill 53 2003

An Act respecting the
equity in education tax credit

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

1. Subsection 8.4.2 (3) of the Income Tax Act, as enacted by the Statutes of Ontario, 2001, chapter 8, section 41 and amended by 2002, chapter 22, section 109, is repealed and the following substituted:

Appropriate percentage

(3) For the purposes of "A" in subsection (2), the following is the appropriate percentage for the taxation year indicated:

1. For a taxation year that commences after December 31, 2001 and ends before January 1, 2003, 10 per cent.

2. For a taxation year that commences after December 31, 2002 and ends before January 1, 2004, 20 per cent.

3. For a taxation year that commences after December 31, 2003 and ends before January 1, 2005, 30 per cent.

4. For a taxation year that commences after December 31, 2004 and ends before January 1, 2006, 40 per cent.

5. For a taxation year that commences after December 31, 2005, 50 per cent.

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 Right Choices for Equity in Education Act (Budget Measures), 2003.

EXPLANATORY NOTE

Section 8.4.2 of the Income Tax Act establishes the equity in education tax credit. The Bill re-enacts subsection 8.4.2 (3) which sets out the phase-in of the rate of the tax credit. The tax credit is calculated as a percentage of eligible fees. Eligible fees are the lesser of the tuition fees paid and $7,000 per child ($3,500 for a child of kindergarten age).

The amendment provides that the rate of the tax credit will be 20 per cent for 2003, 30 per cent for 2004, 40 per cent for 2005 and 50 per cent for 2006 and subsequent years.