O. Reg. 59/06: Co-operative Education Tax Credit

 

ontario regulation 59/06

made under the

Income Tax Act

Made: March 1, 2006
Filed: March 6, 2006
Published on e-Laws: March 8, 2006
Printed in The Ontario Gazette: March 25, 2006

Amending O. Reg. 330/97

(Co-operative Education Tax Credit)

1. The definition of “qualifying leading edge technology education program” in section 1 of Ontario Regulation 330/97 is amended by striking out “apprentice training program” in the portion before paragraph 1 and in paragraphs 2 and 3 and substituting in each case “apprenticeship program”.

2. (1) Subsection 2 (2) of the Regulation is amended by striking out “vocational schools registered under the Private Vocational Schools Act” and substituting “private career colleges registered under the Private Career Colleges Act”.

(2) Subsection 2 (3) of the Regulation is amended by striking out “apprentice training program” and substituting “apprenticeship program”.

3. (1) Paragraph 1 of subsection 4 (1.2) of the Regulation is amended by striking out “apprentice training program” in the portion before subparagraph i and substituting “apprenticeship program”.

(2) Paragraph 2 of subsection 4 (1.2) of the Regulation is amended by striking out “apprentice training program” and substituting “apprenticeship program”.

(3) Paragraph 4 of subsection 4 (1.2) of the Regulation is amended by striking out “subsections (2.1) and (2.2)” and substituting “subsections (2.1), (2.2) and 4.1 (3)”.

(4) Subclause 4 (2.1.1) (a) (i) and subsection 4 (2.2) of the Regulation are amended by striking out “apprentice training program” wherever it appears and substituting in each case “apprenticeship program”.

4. The Regulation is amended by adding the following sections:

Transitional Rules — 2004 Ontario Budget

4.1 (1) This section applies to a work placement that would otherwise be a qualifying leading edge technology work placement under section 4 if,

(a) the work placement ended after May 18, 2004;

(b) the work placement was under an apprenticeship program; and

(c) on May 19, 2004, the student employed in the work placement was in the first 36 months of a qualifying leading edge technology education program.

(2) No portion of the work placement that was after May 18, 2004 shall be a qualifying work placement.

(3) If the work placement commenced after March 10, 2004, the portion of the work placement before May 19, 2004 shall be deemed to be a qualifying leading edge technology work placement, despite the number of weeks in that portion of the work placement, if the student was employed in that portion of the work placement for an average of at least 24 hours a week.

4.2 (1) Subject to subsection (2), a work placement that would otherwise be a qualifying leading edge technology work placement under section 4 is not a qualifying leading edge technology work placement if,

(a) the initial work placement of the student with the employer commenced after May 18, 2004; and

(b) the work placement was under an apprenticeship program.

(2) Subsection (1) does not apply in respect of a work placement of a student who was in an apprenticeship program on May 19, 2004 if the student was not in the first 36 months of a qualifying leading edge technology education program on that day.

4.3 A work placement that would otherwise be a qualifying leading edge technology work placement under section 4 is not a qualifying leading edge technology work placement if the student was first employed with the employer after October 25, 2004 and,

(a) the work placement was not under an apprenticeship program; or

(b) the work placement was under an apprenticeship program but, on May 19, 2004, the student employed in the work placement was not in the first 36 months of a qualifying leading edge technology education program.

5. (1) Subsection 5 (1) of the Regulation is amended by striking out the portion before paragraph 1 and substituting the following:

(1) Subject to subsection (1.1), the following amounts paid or payable by an eligible employer in respect of a qualifying work placement are eligible expenditures for a taxation year for the purposes of section 8.2 of the Act and this Regulation:

. . . . .

(2) Paragraph 1 of subsection 5 (1) of the Regulation is amended by striking out “paid to the student” in the portion before subparagraph i and substituting “paid or payable to the student”.

(3) Subparagraph 1 ii of subsection 5 (1) of the Regulation is amended by striking out “included in the income” and substituting “included, when paid, in the income”.

(4) Paragraph 2 of subsection 5 (1) of the Regulation is amended by striking out “paid to an eligible educational institution or to an employment agency” and substituting “paid or payable to an employment agency”.

(5) Section 5 of the Regulation is amended by adding the following subsection:

(1.1) The following amounts are not eligible expenditures for the purposes of section 8.2 of the Act and this Regulation:

1. An amount paid or payable in respect of services performed after December 31, 2004 by a student who was employed in a qualifying leading edge technology work placement before October 26, 2004 if,

i. the work placement was not under an apprenticeship program, or

ii. the work placement was under an apprenticeship program but, on May 19, 2004, the student employed in the work placement was not in the first 36 months of a qualifying leading edge technology education program.

2. An amount paid or payable in respect of services performed after May 18, 2004 by a student who was in a qualifying leading edge technology education program on May 18, 2004 if,

i. the work placement was under an apprenticeship program, and

ii. on May 19, 2004, the student was in the first 36 months of a qualifying leading edge technology education program.