Canada Education Savings Act — C-3.6 5
CES grants 5 (1) Subject to this Act and the regulations, on application to the Minister in a form and manner approved by the Minister, the Minister may, in respect of any contribution made in 1998 or a subsequent year to a registered education savings plan by or on behalf of a subscriber under the plan in respect of a beneficiary under the plan who is less than 17 years of age at the end of the year preceding the contribution, pay to a trustee of a trust governed by the plan a CES grant for the benefit of the trust. The payment is to be made on any terms and conditions that the Minister may specify by agreement between the Minister and the trustee. Amount of grant (2) The amount of a CES grant that may be paid for a particular year at any time is equal to the lesser of (a) 20% of the contribution, and (b) the amount, if any, by which the lesser of (i) $1,000, unless the particular year is any of 1998 to 2006, in which case, $800, and (ii) the beneficiary’s unused CES grant room for the particular year at that time exceeds (iii) the total of all CES grants paid before that time — other than those amounts paid under subsection (4) — in respect of contributions made in the particular year in respect of the beneficiary. Unused CES grant room (3) The unused CES grant room for a beneficiary for a particular year at any time is (a) if the beneficiary was 17 years of age or older at the end of the preceding year, nil; or (b) in any other case, determined by the formula $400A + $500B - C where A is the number of years after 1997 and before 2007 in which the beneficiary was alive, other than a year throughout which the beneficiary was (i) an ineligible beneficiary in accord-ance with the regulations, or (ii) not resident in Canada, B is the number of years after 2006 in which the beneficiary was alive, up to and including the particular year, other than a year throughout which the beneficiary was (i) an ineligible beneficiary in accord-ance with the regulations, or (ii) not resident in Canada, and C is the total of all CES grants paid before that time — other than those amounts paid under subsection (4) — in respect of contributions made in a preceding year in respect of the beneficiary. Additional amount of grant (4) The amount of a CES grant that may be paid for a particular year at any time is increased by the lesser of (a) the amount that is (i) 20% of the contribution, if the beneficiary (A) is a qualified dependant of an eligible individual whose adjusted income used to determine the amount of a Canada child benefit in respect of January in the particular year is the first threshold for the particular year or less, or (B) is a person in respect of whom a special allowance under the Children’s Special Allowances Act is payable for at least one month in the particular year, and (ii) 10% of the contribution, if the beneficiary is a qualified dependant of an eligible individual whose adjusted income used to determine the amount of a Canada child benefit in respect of January in the particular year is more than the first threshold for the particular year but not more than the second threshold for the particular year, and (b) the amount by which (i) $100, in the case of a beneficiary referred to in subparagraph (a)(i), or (ii) $50, in the case of a beneficiary referred to in subparagraph (a)(ii) exceeds (iii) the total of all amounts paid under this subsection before that time in respect of contributions made in the particular year in respect of the beneficiary. Eligible individual — first month (5) If there has been no determination of eligibility for a Canada child benefit in respect of January in a particular year, the adjusted income to be used for the purposes of subsection (4) is the adjusted income used to determine the amount of a Canada child benefit for the first month in the particular year in respect of which eligibility has been established. Beneficiary born in December (6) In applying subsection (5) in respect of a benefi