13.2 (1) A corporation, other than a child care operator that controls or manages a child care facility with an expectation of profit, may deduct in computing its income from a business for a taxation year a workplace child care tax incentive for the taxation year equal to the amount determined using the formula, (A/B) × 30% in which, “A” is the amount of the corporation’s qualifying expenditures for the taxation year, and “B” is the corporation’s Ontario allocation factor for the taxation year. 1998, c. 34, s. 30; 1999, c. 9, s. 77; 2004, c. 16, s. 2 (2). Qualifying expenditures (2) Subject to subsection (4), the amount of a corporation’s qualifying expenditures for a taxation year is the total of, (a) all capital costs in respect of expenditures incurred by the corporation after May 5, 1998 and before January 1, 2005, (i) in the construction or renovation of a licensed child care facility in Ontario that are included by the corporation for that year for the purposes of the Income Tax Act
(Canada) in Class 1, 3, 6 or 13 of Schedule II to the regulations made under that Act, and (ii) on the acquisition of playground equipment for the child care facility that are included by the corporation for that year for the purposes of the Income Tax Act (Canada) in Class 8 of Schedule II to the regulations made under that Act; (b) all payments of money and the value of qualified contributions that are made by the corporation after May 5, 1998 and before January 1, 2005 to a child care operator who deals at arm’s length with the corporation, to the extent the child care operator has used the money and contributions for the purposes described in clause (a) in the corporation’s taxation year, so long as the operator has provided to the corporation, (i) confirmation in writing of the amount of money and qualified contributions used for those purposes, and (ii) the operator’s license number under the Day Nurseries Act; and (c) repayments of government assistance made by the corporation during the taxation year that do not exceed the amount of the assistance that, (i) has not been repaid in a prior taxation year, and (ii) can reasonably be considered to have reduced the amount of a deduction that would otherwise have been allowed to the corporation under this section.  1998, c. 34, s. 30; 2004, c. 16, s. 2 (2); 2004, c. 31, Sched. 9, s. 4. Qualified contribution (3) The following contributions are qualified contributions from a corporation for the purposes of clause (2) (b): 1. The fair market value of property the ownership of which is transferred by the corporation to the child care operator, if the property is used by the child care operator in the activities and for the purposes described in clause (2) (a). 2. The fair market value of services provided by the corporation to the child care operator, if the services are used by the child care operator in the activities and for the purposes described in clause (2) (a). 3. The reasonable monetary value of the benefit from a loan or a loan guarantee given by the corporation to the child care operator, to the extent the proceeds of the loan are used by the child care operator in the activities and for the purposes described in clause (2) (a).  1998, c. 34, s. 30; 2004, c. 16, s. 2 (2). Limitation on qualifying expenditures (4) The amount of a corporation’s qualifying expenditures for a taxation year shall be determined after the deduction of, (a) all government assistance, if any, in respect of the qualifying expenditures that, at the time the corporation’s return is required to be delivered under section 75 for the taxation year for which the deduction is claimed under this section, the corporation has received, is entitled to receive or may reasonably be expected to be entitled to receive; and (b) the amount, if any, of the expenditures that would not be considered to be reasonable in the circumstances if they had been incurred by persons dealing with each other at arm’s length.  1998, c. 34, s. 30; 2004, c. 16, s. 2 (2). Corporate partner (5) If a corporation is a member of an eligible 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, an expenditure in respect of a licensed child care facility that would be a qualifying expenditure for the purposes of this section if the expenditure had been made by the corporation, the portion of the expenditure that may reasonably be considered to be the corporation’s share may be included in the corporation’s qualifying expenditures for the taxation year for the purposes of this section.  1998, c. 34, s. 30; 2004, c. 16, s. 2 (2). Limited partner (6) Despite subsection (5), a limited partner’s share of an expenditure that is considered under subsection (5) to be a qualifying expenditure for the purposes of this section shall be deemed to be nil.  1998, c. 34, s. 30; 2004, c. 16, s. 2 (2). Definitions (7) In this section, “child care facility” means a day nursery as defined in the
Day Nurseries Act; (“garderie”) “child care operator” means a person who has control or management of a child care facility; (“exploitant de garderie”) “eligible partnership” means a partnership that does not carry on the business of a child care operator; (“société de personnes admissible”) “licensed child care facility” means a child care facility operated under the authority of a licence issued by the Ministry of Community and Social Services under the Day Nurseries Act; (“garderie agréée”) “Ontario allocation factor” of a corporation for a taxation year has the meaning assigned by subsection 12 (1); (“coefficient de répartition de l’Ontario”) “playground equipment” means a structure erected in the playground area of a licensed child care facility for recreational purposes. (“matériel de terrains de jeux”)  1998, c. 34, s. 30; 2004, c. 16, s. 2 (2). Section Amendments with date in force (d/m/y) 1998, c. 34, s. 30 - 06/05/1998; 1999, c. 9, s. 77 - 06/05/1998 2004, c. 16, s. 2 (2)
- 01/01/2004; 2004, c. 31, Sched. 9, s. 4 (1, 2) - 16/12/2004