C-403
Second Session, Fortieth Parliament,
57-58 Elizabeth II, 2009
HOUSE OF COMMONS OF CANADA
BILL C-403
An Act to amend the Alternative Fuels Act and the Excise Tax Act (motor vehicles operating on alternative fuels)
first reading, June 3, 2009
NOTE
3rd Session, 40th Parliament
This bill was introduced during the Second Session of the 40th Parliament. Pursuant to the Standing Orders of the House of Commons, it is deemed to have been considered and approved at all stages completed at the time of prorogation of the Second Session. The number of the bill remains unchanged.
Mr. Silva
402256
SUMMARY
The purpose of this enactment is to promote the use of motor vehicles powered by engines capable of operating on alternative fuels. The enactment increases the percentage of vehicles acquired by the federal government with engines capable of operating on alternative fuels to ten per cent of the fleet by 2012. It also encourages persons to purchase or convert to such vehicles by creating rebates on the goods and services tax paid by those persons.
Also available on the Parliament of Canada Web Site at the following address:http://www.parl.gc.ca
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2nd Session, 40th Parliament,
57-58 Elizabeth II, 2009
house of commons of canada
BILL C-403
An Act to amend the Alternative Fuels Act and the Excise Tax Act (motor vehicles operating on alternative fuels)
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
1995, c. 20
ALTERNATIVE FUELS ACT
1. Section 3 of the Alternative Fuels Act is renumbered as subsection 3(1) and is amended by adding the following:
Alternative fuels obligation
(2) Despite subsection (1), for the fiscal year commencing on April 1, 2012 and for every fiscal year thereafter, not less than ten per cent of motor vehicles acquired by all federal bodies and Crown corporations shall be motor vehicles operating on alternative fuels.
R.S., c. E-15
EXCISE TAX ACT
2. The Excise Tax Act is amended by adding the following after section 258.2:
Definitions
258.3 (1) In this section, “alternative fuel” and “motor vehicle” have the meanings assigned by subsection 2(1) of the Alternative Fuels Act.
Rebates — conversion or certain vehicles
(2) Where a person purchases, imports or brings into Canada an item described in column 1 of the following table, the Minister shall pay a rebate to the person equal to the corresponding amount set out in column 2 of the table.
TABLE 
MOTOR VEHICLES AND CONVERSION KIT
Item
Column 1 
Description 
Column 2
Amount of rebate
1.
A hybrid motor vehicle, namely, a motor vehicle powered by an electric engine and an engine operating on a fuel other than an alternative fuel.
(1) For a motor vehicle purchased, imported or brought into Canada before August 1, 2012, the lesser of $1,500 and 100% of the tax paid by the person.
(2) For a motor vehicle purchased, imported or brought into Canada on or after August 1, 2012, the lesser of $750 and 100% of the tax paid by the person.
2.
A motor vehicle powered by an engine capable of operating on an alternative fuel.
The lesser of $750 and 50% of the tax paid by the person.
3.
Kit of items used to convert a motor vehicle powered by an engine operating on a fuel other than an alternative fuel to a motor vehicle powered by an engine capable of operating on an alternative fuel, including the installation of such a kit.
The lesser of $750 and 50% of the tax paid by the person.
4.
A bus powered by an engine capable of operating on an alternative fuel.
The lesser of $4,000 and 50% of the tax paid by the person.
Published under authority of the Speaker of the House of CommonsAvailable from:Publishing and Depository ServicesPublic Works and Government Services Canada