13.5 (1) In this section, “eligible course” means a course of study offered by an eligible educational institution that provides credit towards a post-secondary degree, diploma, certificate or an apprentice training program approved by the Director of Apprenticeships under the Apprenticeship and Certification Act, 1998 or the Trades Qualification and Apprenticeship Act; (“cours admissible”) “eligible educational institution” means, (a) a university or college of applied arts and technology in Ontario, whose enrolment is counted for the purposes of calculating its entitlement to annual operating grants from the Government of Ontario, (b) the Michener Institute of Applied Health Sciences, or (c) the Ontario College of Art & Design;  (“établissement d’enseignement autorisé”) “eligible equipment” means the equipment described in subsection (14) and excludes the things described in subsection (15); (“matériel admissible”) “eligible learning technology” means, (a) custom or pre-packaged computer programs for use primarily in delivering an eligible course to students or instructors, (b) custom computer programs for use primarily in providing digital library services to students or instructors, or (c) instructional aids consisting of collections of images, sounds or animated pictures that are archived and shared through the Internet and can be accessed and used in eligible courses; (“technologie d’apprentissage admissible”) “notional price” means, in respect of eligible equipment that is donated or sold or eligible learning technology that is donated, sold or licensed in a taxation year to an eligible educational institution, (a) the lowest amount that the corporation would normally have charged in the year on a sale or licensing of the equipment or technology to a person dealing at arm’s length with the corporation, if the corporation carries on a business of selling eligible equipment or selling or licensing eligible learning technology in the taxation year, or (b) the cost to the corporation of the equipment or technology, in any other case;  (“prix théorique”) “Ontario allocation factor” of a corporation for a taxation year has the meaning assigned by subsection 12 (1); (“coefficient de répartition de l’Ontario”) “systems software” means a combination of computer programs and associated procedures, related technical documentation and data that, (a) performs compilation, assembly, mapping, management or processing of other programs, (b) facilitates the functioning of a computer system by other programs, (c) provides service or utility functions such as media conversion, sorting, merging, system accounting, performance measurement, system diagnostics or programming aids, (d) provides general support functions such as data management, report generation or security control, or (e) provides general capability to meet widespread categories of problem solving or processing requirements where the specific attributes of the work to be performed are introduced mainly in the form of parameters. (“logiciel de systèmes”)  2000, c. 42, s. 12; 2002, c. 8, Sched. P, s. 2; 2004, c. 16, s. 2 (2). Incentive (2) In computing its income from a business for a taxation year, a corporation may deduct an educational technology tax incentive in respect of eligible equipment that is donated or sold or eligible learning technology that is donated, sold or licensed to an eligible educational institution during the taxation year but after May 2, 2000 and before January 1, 2005.  2000, c. 42, s. 12; 2004, c. 16, s. 2 (2); 2004, c. 31, Sched. 9, s. 6 (1). Amount of incentive (3) The amount of a corporation’s educational technology tax incentive for a taxation year is the total of all amounts each of which is calculated, in respect of eligible equipment that is donated or sold or eligible learning technology that is donated, sold or licensed to an eligible educational institution in the taxation year, using the formula, [(A – B) ÷ C] × 0.15 in which, “A” is the corporation’s notional price for the equipment or technology, “B” is the fair market value of the consideration, if any, paid or payable by the institution for the equipment or technology, and “C” is the corporation’s Ontario allocation factor for the taxation year. 2000, c. 42, s. 12; 2004, c. 16, s. 2 (2). Transitional rule for licences, 2004 (3.1) In determining, for the purposes of subsection (3), a corporation’s notional price for technology that is licensed to an institution pursuant to a licence granted before January 1, 2005, the following rules apply: 1. If clause (a) of the definition of “notional price” in subsection (1) applies in respect of the corporation and the amount that the corporation normally would have charged for the grant of the licence would require more than one payment by a customer, the corporation’s notional price for the technology for the purposes of this section shall not include any amount that would have been paid or payable by a customer after December 31, 2004. 2. If clause (a) of the definition of “notional price” in subsection (1) applies in respect of the corporation and the amount that the corporation normally would have charged for the grant of the licence would require that a single payment be made by a customer, the corporation’s notional price for the technology for the purposes of this section shall be nil unless the single amount would have been paid or payable by a customer on or before December 31, 2004. 3. If clause (b) of the definition of “notional price” in subsection (1) applies in respect of the corporation, the corporation’s notional price for the technology for the purposes of this section shall not include any amount that would be paid or payable by the corporation after December 31, 2004.  2004, c. 31, Sched. 9, s. 6 (2). Corporate partner (4) A corporation that is a member of a partnership at the end of the corporation’s taxation year may deduct the amount described in paragraph 3 in computing its income from a business for the taxation year in the circumstances described in paragraphs 1 and 2: 1. In a fiscal period of the partnership that ends in the taxation year of the corporation, the partnership donates or sells eligible equipment or donates, sells or licenses eligible learning technology to an eligible educational institution. 2. If the donation or sale had been made or the licence had been given by a corporation, the corporation would be entitled to claim a deduction under this section. 3. The amount deductible by the corporation is the amount that may reasonably be considered to be the corporation’s share of the amount that the partnership would be entitled to deduct in respect of the donation, sale or licence, if the partnership were a corporation and if the partnership used the corporation’s Ontario allocation factor for the taxation year.  2000, c. 42, s. 12; 2004, c. 16, s. 2 (2). Limited partner (5) Despite subsection (4), no amount may be deducted under this section by a corporation with respect to a sale or donation of eligible equipment or a sale, donation or licence of eligible learning technology by a partnership in which the corporation is a limited partner.  2000, c. 42, s. 12; 2004, c. 16, s. 2 (2). Certificate (6) An eligible educational institution shall issue a certificate to a corporation or partnership that donates or sells eligible equipment or that donates, sells or licenses eligible learning technology to it, stating that the equipment or technology is eligible equipment or eligible learning technology for the purposes of this section.  2000, c. 42, s. 12; 2004, c. 16, s. 2 (2). Same (7) The certificate must be issued in a form and be given to the corporation or partnership in a manner approved by the Minister.  2000, c. 42, s. 12; 2004, c. 16, s. 2 (2). Status of certificate (8) Unless otherwise directed by the Minister, the certificate forms part of the records and books of account required to be kept under section 94 by the corporation or partnership making the donation or sale or giving the licence.  2000, c. 42, s. 12; 2004, c. 16, s. 2 (2). Same (9) A corporation is not entitled to claim a deduction under this section in respect of a donation, sale or licence unless the corporation retains a copy of the certificate in its records.  2000, c. 42, s. 12; 2004, c. 16, s. 2 (2). Minister’s direction and order (10) If an eligible educational institution issues one or more incorrect certificates, (a) the Minister may direct the institution to cease issuing certificates under this section; and (b) the Minister may order that all or some of the equipment that is donated or sold to the institution or all or some of the technology that is donated, sold or licensed to the institution is not eligible equipment or eligible learning technology for the purposes of this section.  2000, c. 42, s. 12; 2004, c. 16, s. 2 (2). Revocation (11) The Minister may revoke a direction or order, or both, made under subsection (10) if the Minister is satisfied that the eligible educational institution will comply with the Minister’s directions with respect to the accuracy, form and content of certificates given under this section.  2000, c. 42, s. 12; 2004, c. 16, s. 2 (2). Conditions (12) The Minister may impose such conditions on the revocation of the direction and order under subsection (11) as he or she considers reasonable.  2000, c. 42, s. 12; 2004, c. 16, s. 2 (2). Effect of revocation (13) Upon the revocation of a direction and order, the equipment or technology that would have otherwise been eligible equipment or eligible learning technology is, to the extent approved by the Minister, eligible equipment or eligible learning technology for the purposes of this section and may be certified as such by the educational institution.  2000, c. 42, s. 12; 2004, c. 16, s. 2 (2). Eligible equipment (14) The following types of equipment are eligible equipment for the purposes of the educational technology tax incentive: 1. Computer, electronic and telecommunications equipment that has never been used before, including any systems software essential to the operation of the equipment, and that is to be used primarily to enhance and expand delivery of an eligible course by enabling better communication between instructors and students or between students, either inside or outside the classroom. 2. Instructional equipment or tools that have never been used before, including any specialized supplies and systems software essential to the operation of the equipment or tools, and that are to be used primarily for the delivery of an eligible course.  2000, c. 42, s. 12; 2004, c. 16, s. 2 (2). Exclusions from eligible equipment (15) The following things are not eligible equipment for the purposes of the educational technology tax incentive: 1. Office or classroom furniture. 2. Fixtures, wiring or components that are part of a building or structure. 3. Fibre optic cable. 4. A personal or laptop computer that a student will own after completing the eligible course. 5. Maintenance equipment. 6. Books.  2000, c. 42, s. 12; 2004, c. 16, s. 2 (2). Section Amendments with date in force (d/m/y) 2000, c. 42, s. 12
- 03/05/2000 2002, c. 8, Sched. P, s. 2 - 27/06/2002 2004, c. 16, s. 2 (2)
- 01/01/2004; 2004, c. 31, Sched. 9, s. 6 (1, 2) - 16/12/2004 2009, c. 22, s. 96 (1)
- no effect - see Table of Public Statute Provisions Repealed Under Section 10.1 of the Legislation Act, 2006 - 31/12/2019 13.6 Repealed:  2004, c. 31, Sched. 9, s. 7 (1). Section Amendments with date in force (d/m/y) 2002, c. 23, s. 2 (1)
- 09/12/2002 2004, c. 16, s. 2 (2) - 01/01/2004; 2004, c. 23, Sched. C, s. 2 - no effect - see 2004, c. 31, Sched. 9, s. 7 (1) - 09/12/2002; 2004, c. 31, Sched. 9, s. 7 (1) - 09/12/2002; 2004, c. 31, Sched. 9, s. 7 (2) - 16/12/2004 Subdivision B — Taxable Capital Gains and Allowable Capital Losses