8.4.4 (1) The amount of an eligible individual’s Ontario school bus safety tax credit for a taxation year is the amount equal to 5 per cent of the individual’s qualifying expenditures under this section for the taxation year.  2002, c. 22, s. 110; 2004, c. 16, s. 3. Eligible individual (2) For the purposes of this section, an individual is an eligible individual in respect of a taxation year if he or she, (a) carries on business through a permanent establishment in Ontario in the taxation year; and (b) is not exempt from tax under section 6.  2002, c. 22, s. 110; 2004, c. 16, s. 3. Qualifying expenditures under this section (3) The amount of an eligible individual’s qualifying expenditures under this section for a taxation year is the total of all amounts each of which is the capital cost to the individual of an eligible school bus acquired by the individual in the taxation year.  2002, c. 22, s. 110; 2004, c. 16, s. 3. Eligible school bus (4) A vehicle acquired by an eligible individual is an eligible school bus if the following conditions are satisfied: 1. The vehicle must be a school bus as defined in subsection 175 (1) of the Highway Traffic Act. 2. The vehicle must meet the requirements of sections 1 and 3 of Regulation 612 of the Revised Regulations of Ontario, 1990 (“School Buses”) made under that Act and it must conform to Canadian Standards Association Standard D250-1998 (“School Buses”). 3. The individual must have acquired the vehicle after June 17, 2002 and before January 1, 2006. 4. The vehicle must not have been used before the individual acquired it. 5. The vehicle must be used by the individual for at least 36 months after acquiring it.  It must be used throughout that period for the primary purpose of transporting children in Ontario or transporting adults with a developmental disability in Ontario. 6. For the purposes of the Federal Act, the individual must include the capital cost of the vehicle in class 10 of Schedule II to the regulations made under that Act.  2002, c. 22, s. 110; 2004, c. 16, s. 3. Partnerships (5) If an eligible individual is a member of a partnership at the end of a taxation year and if 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 credit if the bus had been acquired by an eligible individual, the eligible individual who is the member of the partnership may include, in determining the amount of his or her Ontario school bus safety tax credit, that portion of the capital cost of the bus that may reasonably be attributed to him or her.  2002, c. 22, s. 110; 2004, c. 16, s. 3. Limited partner (6) Subsection (5) does not apply if the eligible individual is a limited partner in the partnership.  2002, c. 22, s. 110; 2004, c. 16, s. 3. Penalty (7) An eligible individual is liable to pay a penalty equal to the amount calculated under subsection (8) if, within 36 months after an eligible school bus is acquired, the individual or a partnership in which the individual is a member disposes of the bus or begins to use it for a primary purpose other than transporting children in Ontario or transporting adults with a developmental disability in Ontario.  2002, c. 22, s. 110; 2004, c. 16, s. 3. Amount of penalty (8) The amount of the penalty under subsection (7) is calculated using the formula, A × [(1095 – B) / 1095] where, “A” is 0.05 multiplied by the amount of the capital cost of the eligible school bus that the eligible individual included in determining the amount of his or her Ontario school bus safety tax credit for a taxation year, and “B” is the number of days that the eligible individual or the partnership in which the individual is a member owned the eligible school bus before disposing of it or before beginning to use it for a primary purpose other than transporting children in Ontario or transporting adults with a developmental disability in Ontario. 2002, c. 22, s. 110; 2004, c. 16, s. 3. Exception (9) Subsection (7) does not apply in respect of the disposition of an eligible school bus by an eligible individual or by a partnership in which the eligible individual is a member, (a) if the individual or partnership disposes of the bus in connection with a disposition by the individual 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 individual is bankrupt, is in receivership or is insolvent and the bus is disposed of in the course of the disposition of the assets of the individual’s business; or (c) if the individual disposes of the bus to a corporation in a transfer to which subsection 85 (1) of the Federal Act applies, or disposes of the bus to a partnership in a transfer to which subsection 97 (2) of the Federal Act applies.  2002, c. 22, s. 110; 2004, c. 16, s. 3. Section Amendments with date in force (d/m/y) 2002, c. 22, s. 110
- 9/12/2002 2004, c. 16, s. 3
- 1/01/2004