13.4 (1) In computing its income from a business for a taxation year, a corporation may deduct an Ontario school bus safety tax incentive for the taxation year equal to the total of all amounts determined using the formula, (A/B) × 0.3 in which, “A” is the capital cost of an eligible school bus acquired by the corporation in the taxation year, and “B” is the corporation’s Ontario allocation factor for the taxation year. 1999, c. 9, s. 78; 2004, c. 16, s. 2 (2). Eligible school bus (2) A vehicle acquired by a corporation is an eligible school bus if, (a) it is a school bus as defined under subsection 175 (1) of the Highway Traffic Act that meets the requirements of sections 1 and 3 of Regulation 612 of the Revised Regulations of Ontario, 1990 (School Buses) made under the Highway Traffic Act and that conforms to the Canadian Standards Association Standard D250-1998; (b) it is acquired by the corporation after May 4, 1999 and before January 1, 2006; (c) it is used in Ontario to transport children or to transport adults with a developmental disability and has not previously been used; and (d) the capital cost of the vehicle is included by the corporation for the purposes of the Income Tax Act
(Canada) in class 10 of Schedule II to the regulations made under that Act.  1999, c. 9, s. 78; 2001, c. 13, s. 11 (1); 2002, c. 22, s. 39; 2004, c. 16, s. 2 (2). Corporate partner (3) If a corporation is a member of a partnership at the end of a taxation year and the partnership incurs, in a fiscal period of the partnership that ends in the taxation year, a capital cost in respect of the acquisition of an eligible school bus that would qualify for the Ontario school bus safety tax incentive if the expenditure had been made by a corporation, the portion of the capital cost that may reasonably be considered to be the corporation’s share of the capital cost may be included by the corporation in determining the amount of its Ontario school bus safety tax incentive for the taxation year.  1999, c. 9, s. 78; 2004, c. 16, s. 2 (2). Limited partner (4) Despite subsection (3), no amount may be included by a corporation in the amount of its Ontario school bus safety tax incentive for a taxation year in respect of an expenditure incurred by a partnership in which the corporation is a limited partner.  1999, c. 9, s. 78; 2004, c. 16, s. 2 (2). Recapture (5) Subsection (6) applies if, within 36 months after the day a corporation or a partnership in which the corporation is a member acquires a school bus that is an eligible school bus in a taxation year, the corporation or partnership disposes of the bus or begins to primarily use the bus for a purpose other than transporting children in Ontario or transporting adults with a developmental disability in Ontario.  1999, c. 9, s. 78; 2001, c. 13, s. 11 (2); 2004, c. 16, s. 2 (2). Same, calculation (6) When calculating its income for the taxation year, the corporation shall include the amount determined using the formula, [(A/B) × 0.3] × [(1096 – C)/1096] in which, “A” is the capital cost of the eligible school bus, to the extent that the cost was included by the corporation in determining the amount of an Ontario school bus safety tax incentive for a taxation year of the corporation, “B” is the corporation’s Ontario allocation factor for the taxation year, and “C” is the number of days that the corporation or a partnership in which the corporation is a member owned the eligible school bus before disposing of it or beginning to use it for a purpose other than transporting children in Ontario or transporting adults with a developmental disability in Ontario. 1999, c. 9, s. 78; 2001, c. 13, s. 11 (3); 2004, c. 16, s. 2 (2). Exception (7) Subsection (6) does not apply in respect of a disposition of an eligible school bus by a corporation or by a partnership in which the corporation is a partner, (a) if the corporation or partnership disposes of the bus in connection with a disposition by the corporation or partnership of all or substantially all of the business in which the bus was used, and the person acquiring the business continues after the disposition to carry on the business in Ontario; (b) if the corporation is in bankruptcy or receivership or is insolvent, and the bus is disposed of in the course of a disposition of the assets of the corporation’s business; or (c) if the corporation disposes of the bus to another corporation (referred to in this clause as the “recipient corporation”) as a result of a winding-up of the corporation into the recipient corporation to which subsection 88 (1) of the Income Tax Act
(Canada) applies or as a result of an amalgamation or merger of the corporation with another corporation to form the recipient corporation to which subsection 87 (1) of that Act applies.  1999, c. 9, s. 78; 2004, c. 16, s. 2 (2). Interpretation (8) For the purposes of subsections (5), (6) and (7), (a) a corporation that is formed as a result of an amalgamation or merger of two or more corporations shall be deemed to be the same corporation as, and a continuation of, each of the corporations that amalgamated or merged; and (b) a corporation that is a parent for the purposes of subsection 88 (1) of the Income Tax Act (Canada), or would be a parent if it were a taxable Canadian corporation, shall be deemed to be the same corporation as, and a continuation of, each corporation that, if it were a taxable Canadian corporation, would be described as a subsidiary in that subsection, after the winding up of the subsidiary.  1999, c. 9, s. 78; 2004, c. 16, s. 2 (2). Definition (9) In this section, “Ontario allocation factor”, of a corporation for a taxation year, means Ontario allocation factor as defined in subsection 12 (1).  1999, c. 9, s. 78; 2004, c. 16, s. 2 (2). Section Amendments with date in force (d/m/y) 1999, c. 9, s. 78 - 05/05/1999 2001, c. 13, s. 11 (1-3)
- 30/11/2001 2002, c. 22, s. 39
- 05/05/2002 2004, c. 16, s. 2 (2)
- 01/01/2004