43 (1) There may be deducted from the tax otherwise payable under this Part for a taxation year by a corporation an amount equal to 2 per cent of that proportion of the amount determined under subsection (2) that, (a) that portion of its taxable income or taxable income earned in Canada, as the case may be, for the year remaining after deducting therefrom that portion thereof which is earned in the taxation year in jurisdictions other than Ontario as determined for the purpose of section 39, is of, (b) the aggregate of the portions of its taxable income or taxable income earned in Canada, as the case may be, for the taxation year which were earned in the provinces or territories of Canada as determined for the purpose of section 39.  R.S.O. 1990, c. C.40, s. 43 (1); 1994, c. 14, s. 16 (1); 2004, c. 16, s. 2 (2). Transition, electricity corporation (1.1) Despite subsection (1), for a corporation that generates electrical energy for sale or produces steam for use in the generation of electrical energy for sale, the amount that may be deducted by the corporation for a taxation year ending after December 31, 1998 on its eligible Canadian profits from the generation of electrical energy for sale or the production of steam for use in the generation of electrical energy for sale is the amount that would be determined under subsection (1) if the reference in that subsection to “2 per cent” were read as the total of, (a) 0.5 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 1998 and before January 1, 2000 to the total number of days in the taxation year; (b) 1 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 1999 and before January 1, 2001 to the total number of days in the taxation year; (c) 1.5 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2000 and before January 1, 2004 to the total number of days in the taxation year; (d) 2 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2003 to the total number of days in the taxation year. (e), (f) Repealed:  2003, c. 7, s. 5 (1). 2000, c. 42, s. 15; 2001, c. 8, s. 23 (1); 2002, c. 22, s. 44 (1); 2003, c. 7, s. 5 (1); 2004, c. 16, s. 2 (2). Transition, 2002 Budget (1.2) The amount that may be deducted under subsection (1) by a corporation for a taxation year ending after September 30, 2001 may not exceed the amount that would be determined under subsection (1) for the taxation year if the reference in that subsection to “2 per cent” were read as the total of, (a) 2 per cent multiplied by the ratio of the number of days in the taxation year that are before October 1, 2001 to the total number of days in the taxation year; (b) 1.5 per cent multiplied by the ratio of the number of days in the taxation year that are after September 30, 2001 and before January 1, 2004 to the total number of days in the taxation year; (c) 2 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2003 to the total number of days in the taxation year. (d), (e)  Repealed:  2003, c. 7, s. 5 (2). 2002, c. 22, s. 44 (2); 2003, c. 7, s. 5 (2); 2004, c. 16, s. 2 (2). Transition, other steam producers (1.3) Despite subsection (1), the amount that may be deducted under this section by a corporation that produces steam for sale, other than a corporation referred to in subsection (1.1), for a taxation year ending after December 31, 1999 on its eligible Canadian profits from the production of steam for sale is the amount that would be determined under subsection (1) if the reference in that subsection to “2 per cent” were read as the total of, (a) 1.0 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 1999 and before January 1, 2001 to the total number of days in the taxation year; (b) 1.5 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2000 and before January 1, 2004 to the total number of days in the taxation year; (c) 2 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2003 to the total number of days in the taxation year. (d), (e)  Repealed:  2003, c. 7, s. 5 (3). 2001, c. 23, s. 34 (2); 2002, c. 22, s. 44 (3); 2003, c. 7, s. 5 (3); 2004, c. 16, s. 2 (2). Tax credit base (2) The amount determined under this subsection is the lesser of, (a) the amount, if any, by which the corporation’s eligible Canadian profits for the taxation year exceed the corporation’s adjusted Ontario small business income for the year; or (b) the amount, if any, by which the corporation’s taxable income for the year exceeds the aggregate of, (i) the corporation’s adjusted Ontario small business income for the year, (ii) the amount, if any, of that portion of the corporation’s taxable income for the year which is earned in jurisdictions outside Canada determined in the same manner as for the purposes of section 39, and (iii) the corporation’s aggregate investment income for the year, as defined in subsection 129 (4) of the Income Tax Act (Canada).  1992, c. 3, s. 10 (1); 2004, c. 16, s. 2 (2); 2006, c. 33, Sched. G, s. 1. Definition, “eligible Canadian profits” (3) For the purposes of subsection (2), “eligible Canadian profits”, of a corporation for a taxation year, means such portion of the aggregate of all amounts each of which is the income of the corporation for the year from manufacturing and processing, mining, farming, logging or fishing carried on in Canada as is determined under rules prescribed for that purpose by the regulations.  R.S.O. 1990, c. C.40, s. 43 (3); 2004, c. 16, s. 2 (2). Adjusted Ontario small business income (4) For the purposes of subsections (2) and 51 (4), a corporation’s adjusted Ontario small business income for a taxation year is the amount, if any, by which, (a) the least of the amounts determined in respect of the corporation for the taxation year under paragraphs 125 (1) (a), (b) and (c) of the Income Tax Act (Canada), as modified by section 41 of this Act, exceeds, (b) the amount that is the total of each of the amounts calculated using the following formulas, for which the variables are defined in subsection (5): 1. B/C × D/Z × A/0.06 2. B/C × E/Z × A/0.065 3. B/C × F/Z × A/0.07 4. B/C × G/Z × A/0.075 5. B/C × H/Z × A/0.065 6. B/C × I/Z × A/0.07 7. B/C × J/Z × A/0.085 8.  Repealed:  2003, c. 7, s. 5 (4). 9.  Repealed:  2003, c. 7, s. 5 (5). 1992, c. 3, s. 10 (2); 1994, c. 14, s. 16 (2); 1998, c. 5, s. 12 (1); 2000, c. 10, s. 6 (1); 2001, c. 8, s. 23 (3); 2002, c. 22, s. 44 (4); 2003, c. 7, s. 5 (4, 5); 2004, c. 16, s. 2 (2); 2004, c. 31, Sched. 9, s. 16. Same (5) For the purposes of clause (4) (b), “A” is the amount, if any, of the surtax determined under section 41.1 for the taxation year, “B” is the amount, if any, determined under clause (1) (b) for the taxation year, “C” is the amount, if any, determined under clause (1) (a) for the taxation year, “D” is the number of days in the taxation year that are after April 30, 1992 and before May 5, 1998, “E” is the number of days in the taxation year that are after May 4, 1998 and before January 1, 1999, “F” is the number of days in the taxation year that are after December 31, 1998 and before January 1, 2000, “G” is the number of days in the taxation year that are after December 31, 1999 and before October 1, 2001, “H” is the number of days in the taxation year that are after September 30, 2001 and before January 1, 2003, “I” is the number of days in the taxation year that are after December 31, 2002 and before January 1, 2004, “J” is the number of days in the taxation year that are after December 31, 2003, and “K”  Repealed:  2003, c. 7, s. 5 (7). “L”  Repealed:  2003, c. 7, s. 5 (8). “Z” is the number of days in the taxation year.  2000, c. 10, s. 6 (2); 2001, c. 23, s. 34 (3); 2002, c. 22, s. 44 (5); 2003, c. 7, s. 5 (6-8); 2004, c. 16, s. 2 (2). (6) Repealed:  2001, c. 23, s. 34 (4). (7) Repealed:  2001, c. 23, s. 34 (5). Section Amendments with date in force (d/m/y) 1992, c. 3, s. 10 (1, 2) - 25/06/1992; 1994, c. 14, s. 16 (1, 3) - 01/01/1993; 1994, c. 14, s. 16 (2, 4) - 01/05/1992; 1998, c. 5, s. 12 (1, 2) - 05/05/1998 2000, c. 10, s. 6 (1, 2)
- 02/05/2000; 2000, c. 42, s. 15
- 01/01/1999 2001, c. 8, s. 23 (1-3)
- 01/01/2002; 2001, c. 8, s. 23 (4)
- no effect - see 2001, c. 23, s. 34 (5)
- 01/10/2001; 2001, c. 23, s. 34 (1, 3-5) - 01/10/2001; 2001, c. 23, s. 34 (2)
- 01/01/2000 2002, c. 22, s. 44 (1-5)
- 09/12/2002 2003, c. 7, s. 5 (1-8)
- 01/01/2004 2004, c. 16, s. 2 (2)
- 01/01/2004; 2004, c. 31, Sched. 9, s. 16 - 16/12/2004 2006, c. 33, Sched. G, s. 1 - 20/12/2006 Corporate minimum tax credit