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3rd Session, 40th Legislature

This HTML version is provided for ease of use and is based on the bilingual version that was distributed in the Legislature after First Reading.

Bill 73

THE BUDGET IMPLEMENTATION AND TAX STATUTES AMENDMENT ACT, 2014


  Bilingual version (PDF) Explanatory Note

(Assented to                                         )

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

PART 1

THE EMISSIONS TAX ON COAL ACT

C.C.S.M. c. E90 amended

1           The Emissions Tax on Coal Act is amended by this Part.

2           The title is amended by adding "AND PETROLEUM COKE" after "COAL".

3           Section 1 is amended by adding the following definition:

"taxable fuel" means coal and petroleum coke. (« combustible imposable »)

4(1)        Subsection 3(1) is amended

(a) in the part before clause (a), by striking out "coal" and substituting "taxable fuel";

(b) in the part of clause (b) before subclause (i), by striking out "coal" and substituting "taxable fuel"; and

(c) in subclause (b)(i), by adding "or class of petroleum coke" after "grade of coal".

4(2)        Subsection 3(2) is amended

(a) in the part before clause (a), by adding "and for petroleum coke" after "coal"; and

(b) by adding the following after clause (d):

(e) for petroleum coke, $31.90 per tonne.

4(3)        Subsection 3(3) is amended by striking out everything after "lower rate applies" and substituting ", the highest rate applicable to coal or petroleum coke, as the case may be, applies in determining the tax payable.".

5           Subsection 4(1) is amended

(a) in clause (a), by adding "or classes of petroleum coke" after "coal";

(b) in clause (b), by adding "or class of petroleum coke" after "coal" wherever it occurs; and

(c) by replacing clause (c) with the following:

(c) prescribing different uses for any grade of coal or class of petroleum coke and prescribing a rate of emissions tax for each prescribed use that does not exceed the emissions tax rate for that grade of coal or class of petroleum coke as determined under clause (b) or under subsection 3(2);

PART 2

THE EMPLOYMENT AND INCOME

ASSISTANCE ACT

C.C.S.M. c. E98 amended

6           The Employment and Income Assistance Act is amended by this Part.

7           The title is replaced with "THE MANITOBA ASSISTANCE ACT".

8           Section 1 is amended

(a) in the definitions "applicant" and "recipient", by striking out "income assistance or general assistance" and substituting "income assistance, general assistance or shelter assistance";

(b) in the definition "director", by striking out "Director of Employment and Income Assistance" and substituting "Director of Assistance";

(c) in the definition "general assistance", by striking out everything after "means" and substituting "an amount paid to a person under section 5.1;";

(d) by repealing the definition "basic necessities"; and

(e) by adding the following definitions:

"prescribed" means prescribed by regulation;

"shelter assistance" means an amount paid to a person under section 5.3.1; (« aide au logement »)

9           Subsection 2.1(1) is amended by striking out "Director of Employment and Income Assistance" and substituting "Director of Assistance".

10          Subsection 5(5) is amended

(a) by renumbering it as subsection 18(3); and

(b) by striking out "income assistance or general assistance" and substituting "income assistance, general assistance or shelter assistance".

11          Subsection 5.3(1) is repealed.

12          The following is added after section 5.3:

Shelter assistance

5.3.1(1)    The director must provide assistance in support of shelter costs in accordance with this Act and the regulations to

(a) persons who receive income assistance;

(b) persons who receive general assistance; and

(c) persons who

(i) do not receive income assistance or general assistance,

(ii) reside in prescribed accommodations, and

(iii) meet prescribed eligibility requirements.

Calculating shelter assistance

5.3.1(2)    The amount of shelter assistance payable is to be calculated in accordance with the regulations.

Combining payments

5.3.2       If a person receives income assistance or general assistance, the director may combine any shelter assistance payable to that person with the person's income assistance or general assistance into one payment.

Portability of shelter assistance

5.3.3       The director must take steps to ensure that a person who receives shelter assistance while receiving income assistance or general assistance continues to receive shelter assistance even if he or she no longer qualifies for income assistance or general assistance, provided that he or she continues to meet the applicable eligibility requirements.

13(1)       Subsection 5.4(1) is amended in the part before clause (a) by striking out "An applicant, recipient or dependant as specified in the regulations" and substituting "A person applying for or receiving income assistance or general assistance and a prescribed dependant of that person".

13(2)       Subsection 5.4(2) is amended by striking out ", as specified in the regulations,".

14          Sections 5.5, 9, 15 and 16 are amended by striking out "income assistance or general assistance" wherever it occurs and substituting "income assistance, general assistance or shelter assistance".

15          Subsection 16.2(1) is amended by adding "and shelter assistance to a person who receives general assistance" at the end.

16          Section 16.3 is amended by adding "of income assistance and general assistance" after "recipients".

17(1)       Subsection 18(1) is amended by striking out "make application for a income assistance or general assistance" and substituting "apply for income assistance, general assistance or shelter assistance".

17(2)       Subsection 18(2) is amended by striking out everything after "Every application" and substituting "is to be made to the director on an application form approved by the minister and must contain all of the information required by the form.".

18(1)       Subsection 19(1) is amended

(a) by adding the following after clause (e):

(e.1) respecting shelter assistance, including regulations that establish eligibility requirements for shelter assistance and determine the amount of shelter assistance to be provided to an eligible person;

(b) in clauses (g), (g.4) and (g.5), by striking out "income assistance or general assistance" wherever it occurs and substituting "income assistance, general assistance or shelter assistance"; and

(c) by adding the following after clause (o):

(o.1) prescribing anything referred to in this Act as being prescribed;

18(2)       Subsection 19(3) is amended by striking out "clauses (1)(d) and (e)" and substituting "clause (1)(d), (e) or (e.1)".

18(3)       The following is added after subsection 19(3):

Classes of applicants and recipients

19(4)       A regulation made under subsection (1) may establish classes of applicants and recipients and provide differently for different classes.

19          Section 20 is amended by striking out "income assistance or general assistance" wherever it occurs and substituting "income assistance, general assistance or shelter assistance".

20          Clause 22(1)(b) is amended by striking out "any income assistance or general assistance" and substituting "income assistance, general assistance or shelter assistance".

21          Section 23 is replaced with the following:

C.C.S.M. reference

23          This Act may be referred to as chapter A150 of the Continuing Consolidation of the Statutes of Manitoba.

TRANSITIONAL PROVISION AND CONSEQUENTIAL AMENDMENTS

Transitional

22          A person who, immediately before the coming into force of section 12 of this Act, was receiving benefits under Part 2 of the RentAid Regulation, Manitoba Regulation 148/2006, is to receive shelter assistance without being required to apply for such assistance.

C.C.S.M. c. F20 amended

23(1)       The Family Maintenance Act is amended by this section.

23(2)       The definition "director" in section 52 is amended by striking out "Director of Employment and Income Assistance appointed under The Employment and Income Assistance Act" and substituting "Director of Assistance designated under The Manitoba Assistance Act".

23(3)       Subsection 53(4) is amended by striking out "The Employment and Income Assistance Act" and substituting "The Manitoba Assistance Act".

23(4)       The definition "director" in subsection 64(1) is amended by striking out "Director of Employment and Income Assistance appointed under The Employment and Income Assistance Act" and substituting "Director of Assistance designated under The Manitoba Assistance Act".

C.C.S.M. c. F50 amended

24          Clause 6(c) of The Fatal Accidents Act is amended by striking out "or The Employment and Income Assistance Act" and substituting "The Manitoba Assistance Act".

C.C.S.M. c. I10 amended

25          Clause 7.17(2)(d) of The Income Tax Act is amended by striking out "The Employment and Income Assistance Act" and substituting "The Manitoba Assistance Act".

C.C.S.M. c. L105 amended

26          Section 26 of The Legal Aid Manitoba Act is amended by striking out "The Employment and Income Assistance Act" wherever it occurs and substituting "The Manitoba Assistance Act".

C.C.S.M. c. S165 amended

27          The definition "income assistance" in section 1 of The Social Services Administration Act is amended by striking out "The Employment and Income Assistance Act" and substituting "The Manitoba Assistance Act".

C.C.S.M. c. S167 amended

28          Clause (c) of the definition "designated Act" in section 1 of The Social Services Appeal Board Act is amended by striking out "The Employment and Income Assistance Act" and substituting "The Manitoba Assistance Act".

PART 3

THE FUEL TAX ACT

C.C.S.M. c. F192 amended

29          The Fuel Tax Act is amended by this Part.

30          The part of clause 9(1)(h) before subclause (i) is amended by striking out "the buyer's" and substituting "a".

31          Subsection 13(4) is replaced with the following:

Refund of tax — fuel used to produce electricity

13(4)       A buyer of fuel who uses it to produce electricity is entitled to a refund of the tax paid on that fuel if

(a) the electricity is produced for sale; or

(b) the buyer pays tax under The Retail Sales Tax Act on the electricity so produced.

PART 4

THE INCOME TAX ACT

C.C.S.M. c. I10 amended

32          The Income Tax Act is amended by this Part.

33          The definition "regulations" in subsection 1(1) is amended by striking out "by the Lieutenant Governor in Council".

34          Subsection 4(1) is amended

(a) in clause (g) of Rule 7,

(i) by replacing subclause (i) with the following:

(i) the individual's non-refundable community enterprise development tax credit for the year determined under subsection 11.8(2.3),

(ii) by replacing subclause (iii) with the following:

(iii) the individual's non-refundable employee share purchase tax credit for the year determined under subsection 11.20(4);

(b) in Rule 9, by adding the following after clause (f):

(g) the amount, if any, that the individual is deemed by subsection 11.8(2.2) (community enterprise development tax credit) to have paid on account of his or her tax payable for the year;

(h) the individual's refundable employee share purchase tax credit for the year determined under subsection 11.20(3).

35(1)       Section 5.3 is amended

(a) in clauses (a), (b), (c) and (d) of the definition "dwelling unit cost", by adding ", if it wasn't the individual's principal residence for the whole year," after "principal residence for the year or";

(b) in the definition "municipal taxes", by replacing clause (b) with the following:

(b) school taxes, or

(c) by replacing the definition "principal residence" with the following:

"principal residence" of an individual for a taxation year or part of a year means a residential dwelling unit located in Manitoba that is

(a) owned or rented by the individual or the individual's cohabiting spouse or common-law partner throughout the year or that part of the year,

(b) ordinarily occupied or inhabited by the individual or the individual's cohabiting spouse or common-law partner as a residence throughout the year or that part of the year,

(c) designated in accordance with subsections (2) to (4), for the year or that part of the year, as the principal residence of the individual and, if the individual has a cohabiting spouse or common-law partner, of that spouse or common-law partner, and

(d) not designated by any other individual (other than the individual's cohabiting spouse or common-law partner) as a principal residence for the year or that part of the year; (« résidence principale »)

(d) by repealing the definition "school taxes" and adding the following definition:

"school tax" means the tax imposed for school purposes under section 188 of The Public Schools Act; (« taxe scolaire »)

35(2)       Section 5.3 is further amended by renumbering it as subsection 5.3(1) and adding the following as subsections 5.3(2) to (7):

How to designate principal residence

5.3(2)      A residential dwelling unit may be designated as the principal residence of an individual and his or her cohabiting spouse or common-law partner, if there is one,

(a) on the form on which the education property tax credit is claimed by the individual or the spouse or common-law partner under section 5;

(b) on an application for a municipal tax reduction in a form authorized by the Minister of Finance for Manitoba; or

(c) on an application under The Property Tax and Insulation Assistance Act for a seniors' school tax rebate.

Only primary residence may be designated

5.3(3)      A residential dwelling unit may be designated as an individual's principal residence for a period only if, throughout that period, it is the primary residence of the individual or the individual's cohabiting spouse or common-law partner as evidenced by such indicators as

(a) the amount of time spent by the individual, spouse or common-law partner at the unit in relation to the amount of time spent by him or her at any other residence;

(b) the address of the individual, spouse or common-law partner shown on his or her income tax return, driver's licence, motor vehicle registration, registration cards for health and health insurance, bank and credit card statements and statements of account for utilities; and

(c) any other prescribed indicators.

Only one principal residence at a time

5.3(4)      A residential dwelling unit may not be designated as the principal residence of an individual for any period during which any other residential dwelling unit is the principal residence of the individual.

Extended meaning of "principal residence"

5.3(5)      A principal residence includes contiguous land that contributes to its use and enjoyment as a residence, but does not include

(a) any land or premises that are exempt from municipal taxes and are not the subject of a grant in lieu of municipal taxes; or

(b) any land not assessed as residential property.

Communal and other arrangements

5.3(6)      For the purposes of this section and section 5.4, municipal taxes paid in respect of property of a communal living arrangement, cooperative housing scheme, Hutterite colony or incorporated farm that includes an individual's principal residence are to be apportioned on the same basis as those taxes are apportioned under that arrangement or by that organization or its governing body among its members, participants, partners or shareholders, as the case may be.

Principal residence and farm property

5.3(7)      For the purpose of determining the education property tax credit and the municipal tax reduction for a principal residence for which the municipal taxes are not shown separately from the municipal taxes on other farm property on the tax statement, the municipal taxes payable in respect of the principal residence are to be determined by the following formula:

T = A × B

In this formula,

T   is the municipal taxes payable in respect of the principal residence;

A   is the portioned value of the principal residence for the purposes of The Municipal Assessment Act;

B   is the total, expressed as a percentage, of the tax rates that apply in determining the municipal taxes payable in respect of the principal residence.

36(1)       The following is added after subsection 5.4(2):

Only one EPTC per residence

5.4(2.1)    An individual is not eligible for an education property tax credit for a residential dwelling unit for any period if

(a) he or she is not the assessed owner of the property that includes the dwelling unit; and

(b) either

(i) a municipal tax reduction was granted in respect of the property that includes the dwelling unit, or

(ii) another individual claims an education property tax credit for that dwelling unit for that period.

36(2)       Clause 5.4(4)(b) is replaced with the following:

(b) the total of

(i) the municipal tax reduction given for the year in respect of the individual's principal residence for that year or, if a residential dwelling unit was the individual's principal residence for less than the full year, the total of all amounts each of which is the municipal tax reduction given in respect of a principal residence of the individual for a part of the year, and

(ii) the seniors' school tax rebate, if any, received for that year by the individual or the individual's cohabiting spouse or common-law partner.

37          Subsection 5.5(2) is amended

(a) in clause (b), by striking out "$160." and substituting "the total of $160 and the seniors' school tax rebate, if any, received for that year by the individual or the individual's cohabiting spouse or common-law partner"; and

(b) in clause (c), by striking out everything after "exceeds" and substituting "the total of the individual's education property tax credit for the year and the seniors' school tax rebate, if any, received for that year by the individual or the individual's cohabiting spouse or common-law partner."

38(1)       Subsection 5.6(1) is amended

(a) in the part before clause (a),

(i) by striking out "The" and substituting "Subject to subsection (1.1), the", and

(ii) by striking out ", in accordance with the regulations,"; and

(b) by replacing clause (a) with the following:

(a) the amount prescribed by regulation for that year or, if no amount is prescribed for the year, $700; and

38(2)       The following is added after subsection 5.6(1):

No municipal tax reduction for property with multiple residences

5.6(1.1)    A property that includes more than one residential dwelling unit, as determined by the Minister of Finance for Manitoba, is not eligible for a municipal tax reduction.

Assessed owner may apply for municipal tax reduction

5.6(1.2)    The assessed owner of a property that includes only one residential dwelling unit may apply to the Minister of Finance for Manitoba for the municipal tax reduction to be applied to the property for the year if

(a) the property's municipal tax statement for that year does not include the municipal tax reduction; and

(b) the dwelling unit is at the time of the application, and was at the beginning of the year, the principal residence of the assessed owner or of his or her spouse or common-law partner.

The application must be made before November 16 of the year in question and must be made in a form authorized by the Minister of Finance for Manitoba.

Amount paid to municipality or local government district

5.6(1.3)    If the Minister of Finance for Manitoba is satisfied that the applicant is entitled to the municipal tax reduction, the minister must pay the amount of the reduction to the municipality or local government district entitled to collect taxes on the property, who must then credit that amount to the payment of those taxes.

38(3)       Subsection 5.6(2) is amended by striking out ", in accordance with the regulations,".

38(4)       Subsection 5.6(3) is replaced with the following:

Repayment of municipal tax reduction

5.6(3)      If a municipal tax reduction has been granted in respect of a property for a period during which

(a) the property was the principal residence of neither its assessed owner nor the assessed owner's spouse or common-law partner; or

(b) the property contained more than one residential unit;

the person who was the assessed owner during that period must pay to the Minister of Finance for Manitoba the portion of the reduction that relates to that period determined by prorating the reduction on a daily basis.

38(5)       The following is added after subsection 5.6(3):

Repayment due date

5.6(3.1)    The amount payable under subsection (3) must be paid within 45 days after the due date for the municipal taxes payable for the year. But if, after that due date, the property ceases

(a) to be the principal residence of that person or the person's spouse or common-law partner; or

(b) to be eligible for the municipal tax reduction;

the amount must be paid within 90 days after that occurs.

38(6)       Subsection 5.6(4) is replaced with the following:

Interest payable

5.6(4)      If a person fails to pay to the Minister of Finance for Manitoba the amount payable under subsection (3) within the period within which it must be paid under subsection (3.1), interest is payable by the person on the unpaid amount at the prescribed rate from the beginning of that period.

38(7)       Clauses 5.6(7)(c), (d), (f) and (g) are repealed.

39          The definition "qualified property" in subsection 7.2(2) is amended, in the part before clause (a), by striking out "2015" and substituting "2018".

40(1)       Subsection 10.1(1) is amended

(a) in the definition "qualifying graduate",

(i) by striking out "completed a cooperative education program before 2015 and", and

(ii) by striking out "the program" and substituting "a cooperative education program";

(b) in the definition "qualifying journeyperson", by striking out "and became a journeyperson in that trade before 2015";

(c) in the definition "qualifying work placement", by striking out "a work placement that ends before 2015 and is" in the part before clause (a);

(d) by repealing the definitions "advanced level", "certifying authority", "high school apprentice" and "proof-of-credit certificate"; and

(e) by replacing the definition "qualifying period of employment" with the following:

"qualifying period of employment" in a taxation year means, subject to subsections (1.1) and (1.2),

(a) in relation to the employment of a qualifying apprentice at any level, a period of employment in that year — or two or more periods of employment in that year considered collectively — throughout which

(i) the apprenticeship is governed by an apprenticeship agreement that is in effect and is registered under The Apprenticeship and Certification Act,

(ii) the apprentice is employed at that level and performing work to fulfill the minimum practical experience requirements for that level,

(iii) the work is performed primarily in Manitoba,

(iv) the apprentice is resident in Manitoba and the employer is resident in Manitoba or has a permanent establishment in Manitoba, and

(v) the apprentice is being paid no less than the applicable minimum wage for that employment,

and, for this purpose, a period of employment at any level is deemed to include a period of technical training at that level if the apprentice is employed by the same employer immediately before and after the training period;

(b) in relation to the employment of a qualifying graduate, a period of employment in that year in respect of which the following requirements are satisfied:

(i) throughout the period, the graduate is employed in a permanent position, and not in a position for a specified term or completion of a specified task or project,

(ii) the employment is full-time (at least 35 hours per week),

(iii) the work is being performed primarily in Manitoba,

(iv) the work is closely related to the subject matter of the cooperative education program completed by the graduate, or requires skills and knowledge acquired in that program,

(v) throughout the period, the graduate is resident in Manitoba and the employer is resident in Manitoba or has a permanent establishment in Manitoba,

(vi) the employer's first qualifying period of employment of the graduate began within 18 months after the graduate completed the cooperative education program; and

(c) in relation to the employment of a qualifying journeyperson, a period of employment in that year in respect of which the following requirements are satisfied:

(i) throughout the period, the journeyperson is employed in a permanent position and not in a position for a specified term or completion of a specified task or project,

(ii) the employment is full-time (at least 35 hours per week),

(iii) the work is being performed primarily in Manitoba,

(iv) the work is in, or closely related to, the trade in which the journeyperson is certified,

(v) throughout the period, the journeyperson is resident in Manitoba and the employer is resident in Manitoba or has a permanent establishment in Manitoba,

(vi) the employer's first qualifying period of employment of the journeyperson began within 18 months after the journeyperson became a qualifying journeyperson. (« période d'emploi admissible »)

40(2)       The following is added after subsection 10.1(1):

Limitation — employment of graduate or journeyperson

10.1(1.1)   If an individual has been employed as a qualifying graduate or a qualifying journeyperson for one or more qualifying periods of employment totalling 24 months, any further period of employment of the graduate or journeyperson is not a qualifying period of employment unless the Minister of Finance for Manitoba, on application by the employer, has approved that period of employment for the hiring incentive.

Limitation — qualifying work placements

10.1(1.2)   If a student has completed five qualifying work placements, any further work placement is not a qualifying work placement unless the Minister of Finance for Manitoba, on application by the employer, has approved the hiring incentive for that placement.

40(3)       Subsection 10.1(3) is amended

(a) in the part before clause (a), by striking out "to (11)" and substituting "and (10)";

(b) in clause (c), by striking out "early level";

(c) by repealing clause (d); and

(d) by adding the following after clause (e):

(f) for the 2015 taxation year, the taxpayer's additional hiring incentive determined in accordance with subsection (8.1).

40(4)       Subsection 10.1(4) is amended

(a) in the part before the formula, by adding "in that year" after "employment"; and

(b) by replacing the description of W in the formula with the following:

W   is the lesser of

(a) $1,000 less the amount, if any, of the incentive determined under this subsection for a preceding taxation year for that work placement, and

(b) 10% of the amount by which

(i) the total salary and wages paid to the employee under that work placement for that year for work performed primarily in Manitoba,

exceeds

(ii) the amount of any other government assistance received or receivable by the taxpayer in respect of the work placement or the salary and wages referred to in subclause (i);

40(5)       Subsection 10.1(5) is amended

(a) in the part before the formula, by adding "in that year" after "employment"; and

(b) in the description of W in the formula,

(i) by replacing clause (a) with the following:

(a) that proportion of $2,500 that the number of days in the qualifying period of employment is of 365, and

(ii) by replacing subclause (b)(i) with the following:

(i) the total salary and wages paid to the graduate for that period,

40(6)       The portion of subsection 10.1(6) before the formula is replaced with the following:

Apprentice hiring incentive

10.1(6)     A taxpayer's apprentice hiring incentive for a taxation year is the total of all amounts each of which is the lesser of the amounts determined under clause (a) and clause (b) in respect of a qualifying period of employment of a qualifying apprentice in that year:

(a) the proportion of $5,000 that the number of days in the qualifying period of employment is of 365;

(b) the amount determined by the following formula in respect of the qualifying period of employment:

40(7)       Subsection 10.1(6.1) is replaced with the following:

Increased incentive for rural or northern early level apprentice

10.1(6.1)   In determining the hiring incentive under subsection (6) in respect of a qualifying period of employment of a rural or northern apprentice at an early level of apprenticeship, the reference in the description of W in the formula in clause (6)(b) to "15%" is to be read as "20%".

40(8)       Subsection 10.1(7) is repealed.

40(9)       Subsection 10.1(8) is amended

(a) in the part before the formula, by adding "in that year" after "employment"; and

(b) in the description of W in the formula,

(i) by replacing clause (a) with the following:

(a) that proportion of $5,000 that the number of days in the qualifying period of employment is of 365, and

(ii) in the part of clause (b) before subclause (i), by striking out "10%" and substituting "15%", and

(iii) by replacing subclause (b)(i) with the following:

(i) the total salary and wages paid to the journeyperson for that period,

40(10)      The following is added after subsection 10.1(8) and before the centred heading that follows it:

Transitional — additional 2015 hiring incentive

10.1(8.1)   For the 2015 taxation year, a taxpayer may claim, in addition to the taxpayer's hiring incentives, if any, determined under subsections (4) to (8), an additional hiring incentive equal to the total of all amounts each of which is

(a) in respect of the employment of a co-op student under a qualifying work placement that ended in the taxation year, the amount that would have been determined for that work placement for the 2014 taxation year under subsection (4) (as it read on December 31, 2014) if

(i) the work placement had ended at the end of the 2014 taxation year, and

(ii) no amount were included in respect of salary or wages paid for work performed in the 2015 taxation year under that work placement; or

(b) in respect of the employment of a qualifying graduate, a qualifying apprentice or a qualifying journeyperson for a qualifying period of employment that did not end in the 2014 taxation year, the amount that would have been determined under subsection (5), (6), (7) or (8) (as it read on December 31, 2014) in relation to that period of employment if

(i) the qualifying period of employment had ended in the employer's 2014 taxation year,

(ii) no amount were included in respect of salary or wages paid for work performed in the 2015 taxation year under that qualifying period of employment, and

(iii) the maximum hiring incentive for that qualifying period of employment were that proportion of the maximum hiring incentive otherwise determined ($2,500 for a qualifying graduate, $3,000 for an early level of apprenticeship, $4,000 for a rural or northern apprentice at an early level of apprenticeship, $5,000 for an advanced level of apprenticeship or a journeyperson) that

(A) the number of days in the 2014 taxation year that fall within that qualifying period of employment,

is of

(B) 365.

Transitional — proof-of-credit certificate

10.1(8.2)   Subsections (9) to (19) (as they read on December 31, 2014) continue to apply, with necessary changes, for the purpose of the additional hiring incentive provided for in subsection (8.1). But the proof-of-credit certificate issued for a qualifying work placement or a qualifying period of employment (as those terms were defined on December 31, 2014) that ended in the 2015 taxation year must specify the amount of the additional hiring incentive provided in respect of salary and wages paid for work performed under that work placement or period of employment in the 2014 taxation year.

40(11)      Subsection 10.1(9) is amended by striking out ", (7)".

40(12)      Subsection 10.1(9.1) is repealed.

40(13)      Subsection 10.1(10) is amended by striking out "early level".

40(14)      Subsections 10.1(11) to (16), including the centred headings after subsections (11) and (14), are repealed.

40(15)      The part of subsection 10.1(17) before clause (a) is amended by striking out "The certifying authority must not issue a proof-of-credit certificate in respect of the employment of a journeyperson" and substituting "Despite subsection (8), an employer's hiring incentive in respect of the employment of a journeyperson is nil".

40(16)      Subsections 10.1(18) and (19) are repealed.

40(17)      Subsections 10.1(20) and (21) are amended by striking out "Advanced Education and Literacy" wherever it occurs and substituting "Education and Advanced Learning".

40(18)      The part of subsection 10.1(22) after clause (b) and before clause (c) is amended by striking out "the certifying authority" and substituting "the Minister of Finance for Manitoba or a person designated by that minister".

41          Subsection 10.2(2) is amended

(a) in the definition "eligible expenditure",

(i) in the part before clause (a), by striking out ", determined without any tax credit under this section being treated as government assistance,", and

(ii) in clauses (b) and (c), by striking out "2015" and substituting "2018"; and

(b) by adding the following definitions:

"capital cost", in relation to a business entity's depreciable capital property, means the amount that would be the business entity's capital cost of the property if the amount of any government assistance received or receivable in respect of the property by the entity, or by a taxpayer claiming an amount under subsection (4), were deducted from the capital cost otherwise determined. (« coût en capital »)

"government assistance" means assistance from a government, municipality or other public authority whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or any other form of assistance, other than a tax credit under this section. (« aide gouvernementale »)

42          Subsection 10.2.1(2) is amended

(a) in the part before clause (a) in the definition "eligible expenditure", by striking out ", determined without any tax credit under this section being treated as government assistance,"; and

(b) by adding the following definitions:

"capital cost", in relation to a business entity's depreciable capital property, means the amount that would be the business entity's capital cost of the property if the amount of any government assistance received or receivable in respect of the property by the entity, or by a taxpayer claiming an amount under subsection (4), were deducted from the capital cost otherwise determined. (« coût en capital »)

"government assistance" means assistance from a government, municipality or other public authority whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or any other form of assistance, other than a tax credit under this section. (« aide gouvernementale »)

43          Subsection 10.4(3) is amended

(a) in clauses (a) and (b) of the definition "book publishing labour costs", by striking out "2015" and substituting "2018";

(b) in clause (b) of the definition "eligible book", by striking out "2015" and substituting "2018"; and

(c) in clause (b) of the definition "eligible printing costs", by striking out "2016" and substituting "2019".

44(1)       Subsection 10.4.1(1) is amended by striking out "the printer's eligible printing revenue for the taxation year" and substituting "the total of all amounts each of which is the printer's eligible printing revenue for the taxation year in relation to an eligible book".

44(2)       Subsection 10.4.1(3) is amended

(a) by adding the following definition:

"eligible book" means an eligible book as defined in subsection 10.4(3) that meets the following requirements:

(a) at least 90% of its content is new material that has not previously been published otherwise than as an earlier printing of the same publication;

(b) if it contains pictures and it is not a children's book, the ratio of text to pictures is at least 65%;

(c) the printer satisfies the minister that the book is for sale through an established distributor. (« livre admissible »)

(b) by replacing the definition "eligible printing revenue" with the following:

"eligible printing revenue" of an eligible printer for a taxation year in relation to the printed copies of an eligible book means the lesser of

(a) $30,000 less the amount, if any, included in the printer's eligible printing revenue for a previous taxation year in relation to that book; and

(b) the total of all amounts each of which is an amount paid in the taxation year and before 2016

(i) to the printer by a publisher who is not related to the printer and is resident in Canada, and

(ii) for the service, provided before 2016, of printing, assembling or binding copies of that eligible book in Manitoba. (« revenus d'impression admissibles »)

45(1)       Subsection 10.6(1) is amended

(a) by replacing the definitions "affordable residential unit" and "eligible rental housing project" with the following:

"affordable residential unit" means a residential unit for which the monthly rent does not exceed the limit for that type of unit determined in accordance with the regulations. (« unité résidentielle à prix abordable »)

"eligible rental housing project" for a taxation year means

(a) in the case of a qualifying entity's project, a rental housing project certified under subsection (5) to be an eligible rental housing project for that year; and

(b) in the case of a qualifying corporation's project, a rental housing project certified under subsection (6) to be an eligible rental housing project for a specified number of months in that year. (« projet admissible de logements locatifs »)

(b) by adding the following definitions:

"approved tenant" means a person certified by the minister to be an approved tenant. (« locataire approuvé »)

"capital cost", in relation to an eligible rental housing project of a qualifying corporation or qualifying entity, means the amount that would be its capital cost if the amount of any government assistance received or receivable by the corporation or entity in respect of the project were deducted from the capital cost otherwise determined. (« coût en capital »)

"government assistance" means assistance from a government, municipality or other public authority whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or any other form of assistance, other than a tax credit under this section. (« aide gouvernementale »)

"program income limit", in relation to a household, means the annual income limit for that household determined in accordance with the regulations. (« plafond de revenu pour le programme »)

45(2)       Subsection 10.6(3) is replaced with the following:

Rental housing construction tax credit — qualifying corporation

10.6(3)     A qualifying corporation may deduct from its tax otherwise payable under this Act for a taxation year, for each project that is an eligible rental housing project of the corporation in that year, the amount determined by the following formula:

credit = M × C/60

In this formula,

M   is the number of months in the taxation year that the project is an eligible rental housing project;

C   is the lesser of

(a) 8% of the corporation's capital cost of the project, and

(b) $12,000 multiplied by the number of residential units in the project.

45(3)       Subsections 10.6(5) and (6) are replaced with the following:

Certification — project of qualifying entity

10.6(5)     Upon application by a qualifying entity, the minister must certify a rental housing project of the entity as an eligible rental housing project for a taxation year if the minister is satisfied that

(a) the project first became available for use in that year;

(b) from the day the project became available for use to the day the application was made, at least 10% of the residential units in the project were

(i) designated as, and rented or available for rent as, affordable residential units, and

(ii) either rented to an approved tenant or vacant; and

(c) the entity has undertaken to make at least 10% of the residential units in the rental housing project available for rent as affordable residential units for at least five years after the rental housing project became available for use.

Certification — project of qualifying corporation

10.6(6)     Upon application by a qualifying corporation within two months after the end of its taxation year, the minister must certify a rental housing project of the corporation as an eligible rental housing project for the months in the taxation year that are not more than 60 months after the project became available for use if the minister is satisfied that, throughout those months in that taxation year, at least 10% of the residential units in the project were

(a) designated as, and rented or available for rent as, affordable residential units; and

(b) either rented to an approved tenant or vacant.

Certification — approved tenant

10.6(6.1)   The minister must certify a person who rents or applies to rent an affordable residential unit as an approved tenant if the minister is satisfied that

(a) as of the date on which the person first rents or applies to rent an affordable residential unit, the person's household income does not exceed the program income limit applicable to the person's household; and

(b) the person is not related to the owner of the rental housing project.

Meaning of "household income"

10.6(6.2)   For the purpose of subsection (6.1), a person's household income is the total of all amounts each of which is the taxable income, for the immediately preceding taxation year, of the person or any other person that resides in or intends to reside in the affordable residential unit.

Meaning of "related person"

10.6(6.3)   For the purpose of subsection (6.1), a person is related to a taxpayer if the taxpayer and the person are "related persons", or persons related to each other, as defined in subsection 251(2) of the Income Tax Act (Canada), unless deemed by regulation not to be.

45(4)       Subsection 10.6(7) is amended by striking out "or a corporation" and "or (3)".

45(5)       The following is added after subsection 10.6(10):

Regulations by minister

10.6(11)    The minister may make regulations

(a) for the purpose of the definition "program income limit" in subsection (1), establishing annual household income limits for different types of households;

(b) for the purpose of the definition "affordable residential unit" in subsection (1), establishing rent limits for different types of units.

46          The part of subsection 11.7(2) before clause (a) is amended by striking out "2015" and substituting "2018".

47(1)       Subsection 11.8(1) is amended

(a) by replacing the definition "CED tax credit" with the following:

"CED tax credit" for a taxation year means

(a) in relation to an eligible investment acquired by an individual or a qualifying trust for an individual, the amount of the individual's community enterprise development tax credit determined under subsection (2),

(b) in relation to an eligible investment acquired by an eligible corporation, the amount of the corporation's community enterprise development tax credit determined under subsection (2.1); (« crédit d'impôt pour l'expansion des entreprises dans les collectivités »)

(b) in the definitions "CED tax credit receipt" and "issuer" by adding "an eligible corporation," before "an individual".

47(2)       The following is added after subsection 11.8(1):

Eligible corporation

11.8(1.1)   For the purpose of this section and sections 11.9 to 11.12, a corporation is an eligible corporation in relation to an investment if

(a) at the end of the taxation year in which it acquired the investment and at the time of acquiring the investment, the corporation has a permanent establishment in Manitoba; and

(b) at least 25% of the salary and wages paid by the corporation for the taxation year in which it acquired the investment are paid to individuals who are resident in Manitoba.

47(3)       Subsections 11.8(2) and (3) are replaced with the following:

Tax credit — individual

11.8(2)     An individual's community enterprise development tax credit for a taxation year ending after 2013 is the lesser of $27,000 and the total of the following amounts:

(a) the lesser of $9,000 and 30% of the total of all amounts each of which is the cost to the individual, or to a qualifying trust for the individual, of an eligible investment acquired in the year and before June 12, 2014, by the individual or the qualifying trust;

(b) 45% of the total of all amounts each of which is the cost to the individual, or to a qualifying trust for the individual, of an eligible investment acquired in the year after June 11, 2014, and before 2021 by the individual or the qualifying trust;

(c) the amount, if any, by which

(i) the total of all amounts each of which is the amount determined under clause (a) for one of those preceding years,

exceeds

(ii) the total of all amounts each of which is the amount that would be determined under Rule 7 of subsection 4(1) for one of those preceding years if the individual's CED tax credit for that preceding year were nil.

Tax credit — eligible corporation

11.8(2.1)   An eligible corporation's community enterprise development tax credit for a taxation year is the lesser of $27,000 and 45% of the total of all amounts each of which is the cost to the corporation of an eligible investment acquired by it in the year and before 2021.

Refundable tax credit

11.8(2.2)   A taxpayer is deemed to have paid on the taxpayer's balance due day for a taxation year, on account of the tax payable by the taxpayer for that taxation year, such amount as is claimed by the taxpayer not exceeding

(a) in the case of an individual, the amount determined under clause (2)(b) for the year; and

(b) in the case of an eligible corporation, its CED tax credit determined under subsection (2.1) for the year.

Non-refundable tax credit

11.8(2.3)   An individual's non-refundable CED tax credit for a taxation year ending after 2013 is the amount, if any, by which individual's CED tax credit for the year exceeds the individual's refundable tax credit determined under subsection (2.2) for the year.

Interpretation

11.8(3)      For the purpose of subsections (2) and (2.1), if a person irrevocably subscribes and pays for an eligible investment before acquiring it, the person is deemed to have acquired it when it was irrevocably subscribed and paid for.

47(4)       The section heading for subsection 11.8(4) is amended by adding "to individual" at the end.

47(5)       The following is added after subsection 11.8(4):

Issuer must provide receipt to eligible corporation

11.8(4.1)   The issuer of an eligible investment issued after 2014 to an eligible corporation must provide a CED tax credit receipt to the corporation within 60 days after the day the investment was acquired by the corporation.

47(6)       Subsection 11.8(5) is amended by striking out "An individual" and substituting "A taxpayer".

48(1)       Subsection 11.9(2) is replaced with the following:

Minister may assess penalty

11.9(2)     If satisfied that the issuer has not used or invested the proceeds in accordance with the regulations, the responsible minister may, by written order, require the issuer to pay to the Minister of Finance for Manitoba a penalty not exceeding

(a) if the investment was issued before June 12, 2014, 30% of the proceeds that were not used or invested as required; and

(b) if the investment was issued after June 11, 2014, 45% of the proceeds that were not used or invested as required.

48(2)       Clause 11.11(1)(a) is amended by adding "or an eligible corporation" after "individual".

49(1)       Subsection 11.13(3) is replaced with the following:

SBVC tax credit

11.13(3)    An eligible investor's small business venture capital tax credit for a taxation year ending after June 11, 2014, is the lesser of $67,500 and the total of the following amounts:

(a) the lesser of $135,000 and 30% of the total of all amounts each of which is

(i) the cost to the investor of an eligible investment issued to the investor in the taxation year and before June 12, 2014, or

(ii) the investor's share, as determined under the regulations, of the cost to a flow-through investment vehicle of an eligible investment issued to it in the investor's taxation year and before June 12, 2014;

(b) the lesser of $202,500 and 45% of the total of all amounts each of which is

(i) the cost to the investor of an eligible investment issued to the investor in the taxation year, after June 11, 2014, and before 2017, or

(ii) the investor's share, as determined under the regulations, of the cost to a flow-through investment vehicle of an eligible investment issued to it in the investor's taxation year, after June 11, 2014, and before 2017;

(c) the amount, if any, by which

(i) the total of all amounts each of which is the amount determined under clause (a) for any of the 10 immediately preceding taxation years or the amount determined under clause (b) for any of the 10 immediately preceding taxation years or the 3 immediately following taxation years,

exceeds

(ii) the total of all amounts each of which is,

(A) if the investor is an individual, the amount that would be determined under Rule 7 of subsection 4(1) for any of those preceding or following taxation years if the individual's tax credit under this section for that year were nil, or $67,500, whichever is less, or

(B) if the investor is a corporation, the total of all amounts each of which is the amount that would be the corporation's tax payable for any of those preceding or following taxation years if the corporation's tax credit under this section for that year were nil, or $67,500, whichever is less.

The references in paragraphs (c)(ii)(A) and (B) to "$67,500" are to be read as "$45,000" in relation to each preceding taxation year that ended before June 12, 2014.

49(2)       Clause 11.13(4)(b) is replaced with the following:

(b) the cost to an individual of an eligible investment that also qualifies as an eligible investment of the individual under section 11.8 is the amount, if any, by which the cost otherwise determined exceeds

(i) $30,000 if the investment was acquired before June 12, 2014, or

(ii) $60,000 if the investment was acquired after June 11, 2014.

50          Subsection 11.14(2) is replaced with the following:

Administrator may assess penalty

11.14(2)    If satisfied that the issuer has not used or invested the proceeds in accordance with the regulations, the administrator may, by written order, require the issuer to pay to the Minister of Finance for Manitoba a penalty not exceeding

(a) if the investment was issued before June 12, 2014, 30% of the proceeds that were not used or invested as required; and

(b) if the investment was issued after June 11, 2014, 45% of the proceeds that were not used or invested as required.

51          Clause 11.16(1)(a) is amended by striking out "30%" and substituting "45% (or 30%, if the investment was issued before June 12, 2014)".

52          Section 11.18 is replaced with the following:

Purposes of employee share purchase tax credit

11.18       The purposes of the employee share purchase tax credit provided for in section 11.20 are

(a) to assist and facilitate succession planning for family businesses in Manitoba;

(b) to assist and facilitate employee buyouts and takeovers designed to create or maintain employment in Manitoba;

(c) to foster the growth of worker cooperatives in Manitoba; and

(d) to facilitate and promote employee participation in business successes in Manitoba.

Definitions

11.19(1)    The following definitions apply in this section and sections 11.20 and 11.21.

"administrator" means the minister appointed by the Lieutenant Governor in Council to administer section 11.21 or a person designated by that minister as the administrator. (« administrateur »)

"affiliate" of a corporation means a person or partnership that is related to or affiliated with the corporation under section 251 or 251.1 of the federal Act, but does not include a person or partnership that, upon application by the corporation, is declared by the administrator not to be an affiliate of the corporation. (« affiliée »)

"eligible corporation" means

(a) a corporation authorized to issue shares that qualify for a CED tax credit under section 11.8 or the SBVC tax credit under section 11.13;

(b) a corporation that meets the requirements set out in subsection (2); and

(c) an ESOP holding corporation. (« corporation admissible »)

"eligible individual", in relation to a share issued under a registered ESOP, means an individual, other than a trust, who

(a) is resident in Manitoba at the end of the taxation year in which the share was issued; and

(b) did not acquire the share in his or her capacity as a dealer under The Securities Act. (« particulier admissible »)

"eligible share" means a share issued under a registered ESOP by an eligible corporation to

(a) an individual who, at the time of acquiring the share, is resident in Manitoba and is an employee in relation to the issuer; or

(b) a qualifying trust for such an individual. (« action admissible »)

"employee", in relation to an issuer, means an individual who is an employee, director or officer of

(a) the issuer;

(b) an affiliate of the issuer; or

(c) an employer in relation to whom the issuer is a corporation described in clause (c) of the definition "eligible corporation". (« employé »)

"ESOP holding corporation" means a corporation organized and operated primarily for the purposes of issuing shares under a registered ESOP to employees of

(a) a corporation described in clause (a) or (b) of the definition "eligible corporation"; or

(b) one or more affiliates of such a corporation;

and, in accordance with that ESOP, acquiring, holding and otherwise dealing with shares of those employers. (« corporation de portefeuille RADE »)

"issuer" means a corporation that issues shares under a registered ESOP. (« émetteur »)

"qualifying trust", in relation to an eligible individual, means

(a) a trust governed by a registered retirement savings plan under which

(i) if it is not a spousal plan, the individual is the annuitant, or

(ii) if it is a spousal plan, the individual or the individual's spouse or common-law partner is the annuitant, if the individual and no other individual claims a deduction under this section in respect of the share; and

(b) an arrangement in trust that is registered under the federal Act, and under the Social Insurance Number of the individual, as a TFSA. (« fiducie admissible »)

"registered ESOP" means an employee share ownership plan that is registered under section 11.21. (« RADE enregistré »)

Requirements for "eligible corporation"

11.19(2)    For the purpose of clause (b) of the definition "eligible corporation" in subsection (1), a corporation is an eligible corporation in relation to an employee share ownership plan if all of the following requirements are satisfied at the time that an application is made for the registration of the plan:

CCPC with permanent establishment in Manitoba

1.  The corporation is a Canadian-controlled private corporation other than

(a) a financial institution as defined in subsection (3); and

(b) a prescribed venture capital corporation under Part LXVII of the federal regulations;

and has a permanent establishment in Manitoba.

Assets used in active business

2.  All or substantially all of the carrying value of the assets of the corporation is attributable to one or more of the following:

(a) assets used principally in an active business carried on by the corporation or by one or more affiliates of the corporation;

(b) shares or indebtedness of, or partnership or beneficial interests in, one or more affiliates of the corporation all or substantially all of the carrying value of the assets of each of which is attributable to assets described in clause (a) or this clause.

Revenue from active business

3.  The revenue of the corporation and its affiliates (determined on a combined and consolidated basis where applicable) for the immediately preceding fiscal period was derived principally from one or more active businesses and not principally from property, prescribed activities or any combination of them.

Small business

4.  The total carrying value of the assets of the corporation and its affiliates, determined as at the beginning of the fiscal period on a combined and consolidated basis in accordance with generally accepted accounting principles,

(a) is not more than $25,000,000; and

(b) does not exceed the total indebtedness of the corporation and its affiliates (determined in a similar manner) by more than $10,000,000.

Manitoba employees

5.  At least 25% of the total wages and salaries paid or payable by the corporation

(a) for its immediately preceding fiscal period; or

(b) before the day the application is made, if the corporation's first fiscal period has not ended before that day;

was paid to employees who are resident in Manitoba.

Financial institution

11.19(3) For the purpose of subsection (2), "financial institution" means

(a) a corporation

(i) that carries on business as a bank, credit union or caisse populaire,

(ii) that provides services as a trustee to the public,

(iii) that carries on the business of insurance,

(iv) that carries on business as a trader or dealer in securities,

(v) whose principal business is the business of lending money, cashing cheques, purchasing and collecting or selling debt obligations, discounting tax refunds or rebates, or any combination of these activities, or

(vi) that derives more than 50% of its revenue from any combination of the businesses referred to in subclauses (i) to (v); and

(b) an affiliate of a corporation described in clause (a).

Employee share purchase tax credit

11.20(1)    Subject to subsections (6) and (7), an eligible individual's employee share purchase tax credit for a taxation year is the total of the following amounts:

(a) the lesser of $202,500 and 45% of the cost to the individual, or to a qualifying trust for the individual, of the eligible shares issued in the year to the individual or trust under a registered ESOP established and registered for one or more of the following purposes:

(i) to facilitate succession planning for a family business in Manitoba,

(ii) to facilitate an employee buyout or takeover designed to create or maintain employment in Manitoba;

(b) the lesser of $27,000 and 45% of the cost to the individual, or to a qualifying trust for the individual, of the eligible shares issued in the year to the individual or trust under any other registered ESOP.

Interpretation — time of issuance

11.20(2)    For the purpose of subsection (1), a share that is issued to an individual or a qualifying trust for an individual is deemed to have been issued when it was irrevocably subscribed and paid for by the individual or the trust.

Refundable tax credit

11.20(3)    An eligible individual's refundable employee share purchase tax credit for a taxation year is equal to the lesser of $27,000 and the amount determined under subsection (1) for the year.

Non-refundable tax credit

11.20(4)    An eligible individual's non-refundable employee share purchase tax credit for a taxation year is such amount as the individual claims, but not exceeding the least of the following amounts:

(a) the amount by which $67,500 exceeds the individual's refundable employee share purchase tax credit for the year under subsection (3);

(b) the total of

(i) the amount, if any, by which

(A) the individual's employee share purchase tax credit for the year under subsection (1),

exceeds

(B) the individual's refundable employee share purchase tax credit for the year under subsection (3), and

(ii) the individual's unused employee share purchase tax credit for that year as determined under subsection (5);

(c) the amount, if any, that would be determined by Rule 7 of subsection 4(1) if it were read without reference to subclause (g)(iii).

Unused credit from other years

11.20(5)    An eligible individual's unused employee share purchase tax credit for a taxation year beginning after 2013 is the amount, if any, by which

(a) the total of all amounts each of which is the individual's employee share purchase tax credit under subsection (1) for any of the 10 immediately preceding taxation years or the 3 immediately following taxation years;

exceeds the total of

(b) the total of all amounts each of which is the individual's refundable tax credit under subsection (3) for any of those preceding or following taxation years; and

(c) the total of all amounts each of which is the individual's non-refundable tax credit under subsection (4) for any of those preceding or following taxation years.

Reduction in current year's tax credit

11.20(6)    An eligible individual's tax credit otherwise determined under subsection (1) for a taxation year (the "current year") is to be reduced by an amount equal to the lesser of

(a) the amount of the tax credit determined under subsection (1) for the current year without reference to this subsection; and

(b) the total of all amounts each of which is the amount, if any, by which

(i) 45% of the greater of the following amounts in respect of an eligible share that was issued under that registered ESOP to the individual or a qualifying trust for the individual and, at the end of the current year, is owned by neither the individual nor a qualifying trust for the individual:

(A) the cost included in computing the individual's tax credit under this section for the current year or any previous taxation year, and

(B) all amounts that the individual or a qualifying trust for the individual received before the end of the current year, or became entitled before the end of the current year to receive, as a return of capital on the share, on a redemption or purchase for cancellation of the share by the issuer or as proceeds of a disposition of the share directly or indirectly to the issuer or an affiliate of the issuer,

exceeds

(ii) the total of all amounts each of which is the amount by which the individual's employee share purchase tax credit for a previous taxation year in respect of shares issued under that registered ESOP was reduced by this subsection.

Restriction re shares issued to RRSP

11.20(7)    For the purpose of subsection (1), an amount may be included in respect of eligible shares issued to a registered retirement savings plan only to the extent permitted by the regulations.

Issuer to issue tax credit receipt

11.20(8)    Within the first 60 days after the end of a calendar year in which an eligible share is issued to an individual or a qualifying trust for an individual, the issuer must issue a tax credit receipt to the individual setting out the following information in a form approved by the administrator:

(a) the name, address and Social Insurance Number of the individual;

(b) the tax certificate number assigned by the administrator;

(c) the name of the issuer;

(d) the total number of eligible shares issued to the individual or qualifying trust in that calendar year and the total cost to the individual or qualifying trust of those shares;

(e) the amount, if any, of the individual's tax credit under subsection (1), taking into account any reduction made under subsection (6);

(f) any other information required by the administrator.

Proof of credit

11.20(9)    An individual is entitled to a tax credit under this section for a taxation year only if the tax credit receipt issued by the issuer for the eligible shares acquired by the individual or a qualifying trust for the individual in the taxation year is

(a) filed with the individual's return for that year; or

(b) if the return is filed electronically, held by the individual and filed with the Minister of National Revenue upon request.

Application for registration of ESOP

11.21(1)    A corporation that wishes to issue eligible shares must apply to the administrator, in a form approved by the administrator, for the registration of the corporation's employee share ownership plan. The corporation's application must include the following:

(a) a copy of its most recent annual financial statements;

(b) a copy of its most recent income tax return and the notice of assessment issued by the Canada Revenue Agency for the taxation year for which that return was filed;

(c) a copy of the terms and conditions that will apply to the shares to be issued, including any ownership restrictions affecting those shares;

(d) a copy of the plan;

(e) a statement specifying the period for which the plan is to be registered;

(f) a statement certifying that the corporation is an eligible corporation;

(g) a statement setting out the amount of equity capital to be raised under the plan;

(h) any other information, undertakings and documents stipulated by the application form;

(i) a statement, signed by an officer of the corporation, attesting to the completeness and accuracy of the information provided in the application and the accompanying documents.

Administrator may require additional information

11.21(2)    When reviewing an application for registration, the administrator may require the applicant to provide any additional information or documents that the administrator considers necessary

(a) to determine or verify the applicant's status as an eligible corporation; and

(b) to satisfy himself or herself that the purposes of the employee share ownership plan are consistent with the purposes of the employee share purchase tax credit.

Conditions for registration

11.21(3)    The administrator may register an employee share ownership plan only if

(a) the plan

(i) sets outs the minimum and maximum numbers of employees who will be eligible to acquire shares under the plan, or confirms that there is no such minimum or maximum number,

(ii) requires the issuer to issue to a participating employee, within 30 days after issuing shares to the employee, an investment confirmation that sets out

(A) the number of shares issued to the employee,

(B) the price per share,

(C) the total amount paid for those shares, and

(D) any additional information required by the administrator or by regulation,

(iii) sets out how and when, or how frequently, the value of the shares will be established,

(iv) sets out the proposed use of the share proceeds,

(v) does not allow for shares to be issued until they have been fully subscribed and paid for,

(vi) gives all eligible employees under the plan equal rights and opportunities to acquire shares under the plan, and

(vii) includes any other provisions required by the administrator or by regulation;

(b) the administrator is satisfied that the shares to be issued under the plan

(i) are shares of only one class, no shares of which will have been issued before the plan is registered,

(ii) may be issued only to

(A) individuals who are employees in relation to the issuer and are resident in Manitoba, or

(B) to qualifying trusts for such individuals,

(iii) do not have any rights, privileges or restrictions prohibited by the administrator or by regulation,

(iv) are common shares if the corporation is a worker cooperative or the purpose of the plan is to facilitate and promote employee participation in the corporation's business successes, and

(v) immediately after they are issued to an employee or a qualifying trust for an employee, will be registered in the name of the employee or the trustee of that trust; and

(c) the administrator is satisfied that

(i) the issuer is an eligible corporation,

(ii) the purposes of the plan are consistent with the purposes of employee share purchase tax credit as described in section 11.18,

(iii) the issuer is required under the plan to ensure, within 60 days after the end of each year during the term for which the plan is registered, a report setting out the matters described in clause (a), including a report of the number of shares issued in that year, the amount of equity raised in that year, and how the share proceeds have been or are being used, is given to each participating employee and to the administrator, and

(iv) the plan meets any other prescribed requirements.

Maximum equity capital to be raised

11.21(4)    The administrator may

(a) refuse to register a plan under which more than $10,000,000 of equity capital, or any greater amount allowed by the administrator, may be raised; or

(b) de-register a plan under which more than $10,000,000 of equity capital, or any greater amount allowed by the administrator, has been raised.

Amendment of ESOP requires employee approval

11.21(5)    A registered ESOP may not be amended without the approval of a majority of the participating employees.

Amendment to be registered

11.21(6)    If an amendment to a registered ESOP takes effect before the amendment is registered by the administrator, the registration of the registered ESOP is suspended from the moment the amendment takes effect until the amendment is registered. The administrator may refuse to register an amendment if, in the administrator's opinion, the plan as amended would not have qualified for registration.

Regulations

11.21(7)    The Lieutenant Governor in Council may make regulations

(a) prescribing activities for the purpose of subsection 11.19(2);

(b) establishing the extent to which the cost of shares issued to a registered retirement savings plan may be included in computing an individual's tax credit under subsection 11.20(1);

(c) respecting the reduction of a tax credit under subsection 11.20(6);

(d) for the purpose of subsection (3),

(i) specifying rights, privileges, restrictions or conditions that may be attached to a class of eligible shares or that are not to be attached to a class of eligible shares, and

(ii) prescribing additional conditions for the registration of an employee share ownership plan;

(e) prescribing duties and requirements for issuers and plan administrators in relation to employee share ownership plans that are or have been registered, including recordkeeping and reporting requirements;

(f) respecting the deregistration of a registered ESOP;

(g) prescribing what is to be included in, or excluded from, the cost of a share for the purpose of calculating an individual's tax credit under this section;

(h) respecting the recovery of an employee share purchase tax credit in the event that a share in relation to which it was obtained is redeemed, transferred or otherwise disposed of contrary to the regulations or the terms and conditions of the registered ESOP under which it was issued;

(i) respecting the recovery of an employee share purchase tax credit obtained on the issuance of an eligible share, by imposing a tax or penalty on the issuer or any other entity that benefited from the share proceeds, in the event that

(i) the share proceeds are not used for the purposes set out in the registered ESOP, or

(ii) the issuer or plan administrator fails to comply with the regulations or the terms and conditions of the ESOP;

(j) respecting any other matter that the Lieutenant Governor in Council considers necessary or advisable for the proper administration of the employee share purchase tax credit.

53          Subsection 69(2) is amended by striking out "A person" and substituting "Subject to subsection 76(1.1), a person".

54          The following is added after subsection 70(1):

No right to refund in respect of false return

70(1.1)     A discounter must not acquire a right to a refund in respect of a taxpayer's return that contains information that the discounter knows to be false.

55(1)       The following is added after subsection 76(1):

Minister may refuse registration

76(1.1)     If the minister has reasonable and probable grounds to believe, based on the past conduct of the person applying for registration or the person's relationship to a discounter whose registration was or could have been cancelled or suspended under subsection (1), that the person will likely not comply with any provision of this Part, the minister may refuse to register the person as a discounter.

55(2)       Subsection 76(2) is replaced with the following:

Appeal

76(2)       A person whose registration as a discounter has been suspended or cancelled under subsection (1) or refused under subsection (1.1) may, within 30 days after receiving notice of the suspension, cancellation or refusal, appeal the minister's action or decision to the court.

PART 5

THE PROPERTY TAX AND INSULATION

ASSISTANCE ACT

C.C.S.M. c. P143 amended

56          The Property Tax and Insulation Assistance Act is amended by adding the following after section 16.11 and before Part IV:

PART III.3

SENIORS' SCHOOL TAX REBATE

Definitions

16.12(1)    The following definitions apply in this Part.

"education property tax credit" means the tax credit under section 5.4 of The Income Tax Act. (« crédit d'impôt foncier pour l'éducation »)

"minister" means the minister appointed by the Lieutenant Governor in Council to administer this Part. (« ministre »)

"rebate" means the seniors' school tax rebate payable under this Part. (« remboursement »)

"school tax", in relation to a residential dwelling unit for a calendar year, means the total of

(a) the tax imposed for that year under section 188 of The Public Schools Act in respect of the property that includes that dwelling unit; and

(b) the community revitalization levy, if any, imposed for that year in respect of that property under The Community Revitalization Tax Increment Financing Act in lieu of a tax under section 188 of The Public Schools Act;

divided by the number of dwelling units included in that property as determined by the minister. (« taxe scolaire »)

"tax due date", in relation to a property for a calendar year, means the day on which the municipal taxes for that property are due or would be due if they were not being paid under an instalment plan. (« date d'échéance des taxes municipales »)

Information Note    A property classified as Residential 1 may have up to four dwelling units. For the purpose of the rebate, if a property has more than one dwelling unit, the school tax is apportioned equally among those units.

Additional terms defined in Income Tax Act

16.12(2)    "Cohabiting spouse or common-law partner", "municipal taxes", "municipal tax reduction" and "principal residence" have the same meaning as in section 5.3 of The Income Tax Act.

Residential and farm or other property

16.12(3)    If a property includes both

(a) property classified under The Municipal Assessment Act as Residential 1; and

(b) property classified under The Municipal Assessment Act as Farm Property or as Other Property;

and the school tax is not shown separately for each type of property on the tax statement, the school tax in respect of the residential property is its portioned value under The Municipal Assessment Act multiplied by the tax rate that applies to the residential property.

Eligibility for rebate

16.13       An individual is eligible for a rebate in respect of a residential dwelling unit for a calendar year if all of the following conditions are satisfied:

1.  The property that includes the dwelling unit

(a) is classified under The Municipal Assessment Act as Residential 1 or Residential 3; and

(b) if classified as Residential 3, consists of a condominium unit and the proportion of the common interest appurtenant to the unit.

2.  On the property's tax due date for that year, its registered owner, or one of its registered owners, is

(a) the individual or the individual's cohabiting spouse or common-law partner; or

(b) a family farm corporation, as defined in The Farm Lands Ownership Act, the shareholders of which include the individual or the individual's cohabiting spouse or common-law partner.

3.  At the time of applying for the rebate, the municipal taxes for the property are not in arrears.

4.  On the property's tax due date for that year, the dwelling unit is the principal residence of

(a) the individual; and

(b) if the individual has a cohabiting spouse or common-law partner, that spouse or common-law partner.

5.  At the beginning of that year, the individual or the individual's cohabiting spouse or common-law partner is at least 64 years old.

6.  The individual or the individual's cohabiting spouse or common-law partner is eligible for a municipal tax reduction or education property tax credit for the year in respect of the dwelling unit.

If an individual would have been eligible for a rebate for a calendar year but for the death of the individual or his or her cohabiting spouse or common-law partner after the beginning of the year and before the tax due date, the minister may treat the individual or his or her estate as being eligible for the rebate.

Application for rebate

16.14(1) To obtain a rebate in respect of a dwelling unit (referred to in this section as the "specified unit"), an eligible individual must apply for it in a form approved by the minister.

When to apply

16.14(2)    A separate application is required for each calendar year. Subject to the regulations, it must be made after the municipal tax statement for the year is issued and before April 1 of the following year.

Content of application

16.14(3)    The application must include or be accompanied by the following information:

(a) the name, address, date of birth and Social Insurance Number of the applicant and of the applicant's cohabiting spouse or common-law partner if he or she has one;

(b) the roll number for the property that includes the specified unit and, if the property is not in the City of Winnipeg, the name and number of the municipality in which it is located as shown on the tax statement for the property;

(c) a statement designating the specified unit, in accordance with The Income Tax Act and for the purposes of that Act and this Part, as the principal residence of

(i) the applicant, and

(ii) the applicant's cohabiting spouse or common-law partner, if he or she has one,

for the year or a part of the year that includes the tax due date for the property that includes the unit;

(d) any other information stipulated by the application form that is required to determine the applicant's eligibility for the rebate.

The applicant must also provide any other information that the minister requires to determine the applicant's eligibility for the rebate.

Seniors' school tax rebate

16.15       If the minister is satisfied that an applicant is eligible for a rebate in respect of a residential dwelling unit, the Minister of Finance must pay to the applicant, upon the requisition of the minister, a seniors' school tax rebate equal to the lesser of

(a) $235 or any greater amount prescribed or determined by regulation; and

(b) the amount, if any, by which

(i) the dwelling unit's school tax for the year,

exceeds

(ii) the municipal tax reduction that was or may be applied for the year to the applicant's principal residence, and

(iii) any education property tax credit that could be claimed for that year by the applicant or the applicant's cohabiting spouse or common-law partner in respect of the applicant's principal residence if no rebate were paid in respect of the dwelling unit.

Recovery of rebate

16.16(1)    If

(a) a rebate for a calendar year has been paid to an individual who was not eligible for it; or

(b) the amount paid as a rebate exceeds the amount that should have been paid to the individual;

the minister may issue a notice of assessment to the individual setting out the amount repayable by the individual. The individual must repay the amount to the Minister of Finance within 30 days after the date of the notice of assessment.

Interest payable

16.16(2)    If an individual fails to comply with subsection (1), interest is payable by the individual on the unpaid amount, at the rate prescribed under The Income Tax Act for the purpose of subsection 5.6(4) of that Act, from the date the rebate was paid.

Recovery by set-off

16.16(3)    The amounts payable by an individual under subsections (1) and (2) may be set off against any future rebate payable under section 16.15 to the individual or the individual's cohabiting spouse or common-law partner.

Delegation

16.17        The minister may delegate the administration of some or all of this Part to any person.

Use of information in government records

16.18       For the purpose of administering this Part and for the purposes of identifying those who may be eligible for a rebate and informing them about the rebate, the minister is to be given on request, and may use and disclose, the following information from records about individuals that are maintained under The Income Tax Act, The Municipal Assessment Act or The Real Property Act or by the Department of Health, Healthy Living and Seniors:

(a) the name, date of birth, Social Insurance Number, and address of the individual;

(b) if the individual is married or has a common-law partner,

(i) the name, date of birth, Social Insurance Number and address of the spouse or common-law partner, and

(ii) whether the spouse or common-law partner is a cohabiting spouse or common-law partner of the individual;

(c) the designation of a residential dwelling unit as the principal residence of an individual for income tax purposes;

(d) the ownership and classification of property in relation to which an individual is or may be eligible for a rebate and the number of residential dwelling units included in such a property.

Regulations

16.19       The Lieutenant Governor in Council may make regulations

(a) authorizing the amount of a rebate in respect of a dwelling unit to be paid to the municipality, to be credited to the taxes owing on the property that includes that unit;

(b) authorizing all or any part of the amount of an expected rebate in respect of a dwelling unit to be paid or credited, as an advance of the expected rebate, before the applicable tax due date;

(c) prescribing an amount or a method of determining an amount for the purpose of clause 16.15(a);

(d) establishing a process to deal with objections or complaints respecting the granting of, or the failure or refusal to grant, a rebate;

(e) respecting audits and inspections for the purpose of determining or verifying an individual's eligibility for a rebate or the amount payable as a rebate;

(f) respecting any matter the Lieutenant Governor in Council considers necessary or advisable for the purposes of this Part.

PART 6

THE RETAIL SALES TAX ACT

C.C.S.M. c. R130 amended

57          The Retail Sales Tax Act is amended by this Part.

58          The definition "sale" in subsection 1(1) is amended by striking out everything after clause (j).

59(1)       Subsection 3(1) is amended

(a) in subclause (w.4)(i), by striking out "welding tips and";

(b) by adding the following after subclause (w.4)(i):

(i.1) welding tips and nozzles,

(c) in clause (cc), by striking out "heating or cooking" and substituting "heating, cooking or producing electricity".

59(2)       Clauses 3(18)(f), 3(18.1)(c), 3(18.2)(c) and 3(18.3)(c) are amended by striking out "under this Act in respect of a previous purchase of the property" and substituting "under section 2 in respect of the property".

59(3)       The following is added after subsection 3(18.3):

Sale to new corporation by partnership

3(18.3.1)   No tax is payable in respect of a purchase of tangible personal property by a newly incorporated corporation from a partnership if

(a) throughout the first six months after the purchase, shares of the purchaser having a fair market value of not less than 95% of the fair market value of all the issued shares of the purchaser

(i) are owned by those who were the members of the partnership at the time of the purchase, and

(ii) are owned by them in the same proportion as the partnership interests were owned by them at the time of the purchase;

(b) no interest in the partnership was acquired or increased in contemplation of the purchase; and

(c) the partnership has paid tax under section 2 in respect of the property.

59(4)       Subsection 3(24) is amended

(a) in clause (a), by striking out "state or"; and

(b) in clause (b), by striking out "if registered as a commercial aircraft,".

59(5)       The following is added after subsection 3(34):

Exemption for rental of temporary replacement for multijurisdictional vehicle under repair

3(34.1)     No tax is payable in respect of a lease of a vehicle for a period if

(a) throughout that period, it is used as a replacement for a multijurisdictional vehicle that is being repaired;

(b) for that period, tax is paid under section 2.3 on the multijurisdictional vehicle being repaired; and

(c) the replacement vehicle is used only

(i) in accordance with the terms of the licence that was issued for the multijurisdictional vehicle, and

(ii) for the purposes for which that multijurisdictional vehicle would be used were it not being repaired.

59(6)       Clause 3(38)(b) is amended by striking out "or (18.3)" and substituting ", (18.3) or (18.3.1)".

59(7)       The following is added after subsection 3(39):

Bundling of taxable and non-taxable property

3(40)       A property that would be taxable if it were sold for a separate purchase price (a "taxable property") is exempt from tax imposed under this Act if

(a) the taxable property is sold along with a non-taxable property for a single price;

(b) the fair market value of the taxable property is

(i) $50 or less, and

(ii) 10% or less of the total fair market value of the taxable property and the non-taxable property;

(c) the taxable and non-taxable properties

(i) are acquired by the vendor as a prepackaged single product, or

(ii) are packaged by the vendor as a single product for sale;

(d) the taxable property is not being provided by way of promotional distribution; and

(e) the taxable property is not a liquor or tobacco product.

60          Subsection 9(2.9) is replaced with the following:

Tax on bulk sale

9(2.9)      If tax is payable in respect of a sale in bulk as defined in subsection 45(1) of The Tax Administration and Miscellaneous Taxes Act,

(a) despite subsection (2), the tax is not required to be collected and remitted by the seller; and

(b) despite subsection 2(4), the buyer is required to report the transaction and pay the tax in accordance with the regulations.

61(1)       Clause 26(4)(b) of the French version is replaced with the following:

b) le prix de vente du premier véhicule ou de la première remorque multiplié par le taux général de taxe de vente.

61(2)       Subsection 26(4.1) is replaced with the following:

Exceptions to refund of tax on motor vehicle or trailer

26(4.1)     A person is not entitled to a refund under subsection (4) if

(a) the tax payable in respect of the purchased vehicle was reduced under subsection 2.2(9);

(b) an amount has been refunded or is refundable under subsection (18) in respect of the returned vehicle;

(c) the tax on the purchased vehicle or the tax on the sold vehicle is subject to proration under this Act based on the use of the vehicle for interjurisdictional commercial purposes; or

(d) the vehicle was transferred to an insurer as part of the settlement of an insurance claim.

61(3)       Subsection 26(14) is amended by striking out "a medical doctor's order" and substituting "an order by a medical doctor, registered nurse, nurse practitioner, occupational therapist or physiotherapist".

61(4)       Clause 26(17)(a) is amended by striking out "tobacco products, liquor, wine or beer" and substituting "liquor or tobacco products".

61(5)       The following is added after subsection 26(17):

Motor vehicle returned to manufacturer

26(18)      If the director is satisfied that

(a) a purchaser returned a motor vehicle as a result of an arbitrator's ruling in an independent, impartial third party dispute resolution process (such as the one provided for by the Canadian Motor Vehicle Arbitration Plan);

(b) on the return of the motor vehicle the manufacturer paid a refund or allowed a credit to the purchaser of all or a portion of the purchase price but did not pay a refund or allow a credit in respect of the tax paid on the purchase price; and

(c) the purchaser applied to the director for a refund under this subsection within two years after the date of the arbitrator's ruling;

the director must refund to the purchaser the amount of tax paid by the purchaser on the portion of the purchase price that the manufacturer refunded or allowed as a credit.

62          The following is added after clause 29(1)(i):

(i.1) respecting the tax payable, and any credits or refunds provided, under section 2.3 in respect of vehicles and trailers used for interjurisdictional commercial purposes, including the provision of information and keeping of records in relation to such vehicles and trailers;

PART 7

THE TAX ADMINISTRATION AND

MISCELLANEOUS TAXES ACT

C.C.S.M. c. T2 amended

63          The Tax Administration and Miscellaneous Taxes Act is amended by this Part.

64          Subsection 1(1) is amended by replacing clause (a.2) of the definition "tax Act" with the following:

(a.2) The Emissions Tax on Coal and Petroleum Coke Act;

65(1)       Subsection 14(3) is amended in the part before clause (a) by striking out "the contractor must" and substituting "the director may require the contractor to".

65(2)       The following is added after subsection 14(3):

Maximum amount of security during infrastructure funding period

14(3.1)     The reference to "9.15%" in subsection (3) shall be read as "10.15%" during the infrastructure funding period as defined in The Retail Sales Tax Act.

65(3)       Subsection 14(5) of the English version is amended in the part before clause (a) by striking out "as required by" and substituting "under".

66          Subsection 46(3) is amended in the part before clause (a) by striking out "a purchase of".

67          The following is added after subsection 53(3):

When amount is paid, remitted or received

53(3.1)     For the purpose of clauses (1)(b) and (2)(b) and any other provision of a tax Act that specifies the time within which an application for a refund of an amount paid or remitted as or on account of tax must be made, an amount paid or remitted by negotiable instrument — other than an instrument that is not honoured — is deemed to have been paid, remitted or received on the day the instrument is received.

68           Subsection 59(4) is replaced with the following:

Appellant to serve application on other party

59(4)       The appellant must serve a copy of the application on the other party to the appeal within 14 days after the application is filed with the court.

PART 8

THE TOBACCO TAX ACT

C.C.S.M. c. T80 amended

69          The Tobacco Tax Act is amended by this Part.

70          Subsection 2(6) is amended by striking out "the price paid" and substituting "the price (not including any tax under this Act or The Retail Sales Tax Act) paid".

71          Subclause 28(1)(o)(ii.1) is repealed.

Unproclaimed provision repealed

72          Clause 84(b) of The Budget Implementation and Tax Statutes Amendment Act, 2008, S.M. 2008, c. 3, is repealed.

PART 9

MISCELLANEOUS PROVISIONS

THE CIVIL SERVICE SUPERANNUATION ACT

C.C.S.M. c. C120 amended

73(1)       The Civil Service Superannuation Act is amended by this section.

73(2)       The following is added after subsection 6(5.2):

Payment of actuarial liability

6(5.3)      The Lieutenant Governor in Council may permit an employer who was not required to make matching contributions in respect of its employees during a prior period to pay to the board the amount calculated by the board's actuary as representing the actuarial liability for the employer's share of benefits in respect of service during that period.

Employer deemed to have made matching contributions

6(5.4)      An employer who makes a payment under subsection (5.3) in respect of a prior period is deemed for the purpose of subsection (5.1) to have made matching contributions in respect of its employees for that period.

73(3)       Subsection 22(2) is amended by striking out "subsection 6(5.1)" and substituting "subsections 6(5.1) and (5.4)".

73(4)       Subsection 23(2) is amended in the part before clause (a) by striking out "subsection 6(5.1)" and substituting "subsections 6(5.1) and (5.4)".

THE FINANCIAL ADMINISTRATION ACT

C.C.S.M. c. F55 amended

74(1)       The Financial Administration Act is amended by this section.

74(2)       Section 67.3 is repealed.

74(3)       The following is added as section 67.4 as part of Part 7:

Five-year core infrastructure plan — financial management strategy

67.4(1)     The statement of the government's financial strategy for a fiscal year beginning before 2019, referred to in section 8 of The Balanced Budget, Fiscal Management and Taxpayer Accountability Act, must set out as a measurable outcome the government's objective for core infrastructure investment for the fiscal year.

Five-year core infrastructure plan — report on outcomes

67.4(2)     The report on outcomes for a fiscal year beginning before 2019, referred to in section 9 of The Balanced Budget, Fiscal Management and Taxpayer Accountability Act, must include a report setting out the following:

(a) as incremental retail sales tax revenue, an amount equal to the following percentage of the government's revenue under The Retail Sales Tax Act for the fiscal year:

(i) 9.375% for the 2013-2014 fiscal year,

(ii) 12.5% for fiscal years beginning after 2013;

(b) as core infrastructure expenditures, the aggregate of

(i) the total of the expenditures for the fiscal year for roads, highways and bridges, as set out in subsection (4),

(ii) the total of the expenditures for the fiscal year for flood protection, as set out in subsection (5), and

(iii) the total of the amounts paid for the fiscal year out of the Building Manitoba Fund under The Municipal Taxation and Funding Act excluding transit operating support;

(c) the amount, if any, by which

(i) the incremental retail sales tax revenue for the fiscal year under clause (a),

exceeds, or falls short of,

(ii) the amount by which the core infrastructure expenditures for the fiscal year under clause (b) exceeds $729,000,000; and

(d) the amount, if any, by which the total of the amounts reported under subclause (c)(i) for the fiscal year and all previous fiscal years beginning after 2013 exceeds the total of the amounts reported under subclause (c)(ii) for those years.

Excess revenue

67.4(3)     If a cumulative excess amount is reported under clause (2)(d) in a report for a fiscal year beginning after 2013, the total of the government's estimates of core infrastructure expenditures for the subsequent fiscal years beginning before 2019 must exceed the total of

(a) the cumulative excess amount;

(b) the government's estimated incremental retail sales tax revenue for those subsequent years; and

(c) $729,000,000 for each of those subsequent years.

Interpretation — expenditures for roads, highways and bridges

67.4(4)     For the purpose of subclause (2)(b)(i), expenditures for roads, highways and bridges consist of

(a) highways infrastructure;

(b) transportation capital projects and equipment;

(c) airport runway infrastructure; and

(d) maintenance and preservation of provincial trunk highways, provincial roads and related projects.

Interpretation — expenditures for flood protection

67.4(5)     For the purpose of subclause (2)(b)(ii), expenditures for flood protection consist of

(a) water related infrastructure; and

(b) maintenance and preservation of waterway control projects.

THE RESEARCH MANITOBA ACT

Research Manitoba Act enacted

75           The Research Manitoba Act set out in the Schedule is hereby enacted.

PART 10

COMING INTO FORCE

Coming into force

76(1)       Except as otherwise provided in this section, this Act comes into force on the day it receives royal assent.

Part 1: The Emissions Tax on Coal Act

76(2)       Sections 2 to 5 are deemed to have come into force on January 1, 2014.

Part 2: The Employment and Income Assistance Act

76(3)       Sections 7 to 28 come into force on July 1, 2014.

Part 4: The Income Tax Act

76(4)       Sections 35 to 37 are deemed to have come into force on January 1, 2014.

76(5)       Section 40 comes into force on January 1, 2015 and applies to taxation years ending on or after that day.

76(6)        Section 44 is deemed to have come into force on March 6, 2014.

76(7)       Section 45 is deemed to have come into force on April 17, 2013.

Part 5: The Property Tax and Insulation Assistance Act

76(8)       Section 56 is deemed to have come into force on January 1, 2014.

Part 6: The Retail Sales Tax Act

76(9)       Subsection 61(1) is deemed to have come into force on July 1, 2013 immediately after subsection 48(1) of The Budget Implementation and Tax Statutes Amendment Act, 2013, S.M. 2013, c.55, came into force.

Part 9: Miscellaneous Provisions

76(10)      Section 74 is deemed to have come into force on July 1, 2013 immediately after section 3 of The Manitoba Building and Renewal Funding and Fiscal Management Act (Various Acts Amended), S.M. 2013, c.36, came into force.

SCHEDULE

THE RESEARCH MANITOBA ACT

TABLE OF CONTENTS

Section

1   Definitions

2   Research Manitoba

3   Mandate of Research Manitoba

4   Legal capacity

5   Board of directors

6   Chair and vice-chair

7   Terms of office

8   By-laws

9   Remuneration of directors

10  Fiscal year

11  Grants

12  Fund continued

13  Amounts held in fund

14  Auditor

15  Annual report

16  Reviews

17  Regulations

18-19 Transitional provisions

20  Repeal

21  C.C.S.M. reference

22  Coming into force

THE RESEARCH MANITOBA ACT

INTRODUCTORY PROVISIONS

Definitions

1           The following definitions apply in this Act.

"board" means the board of directors of Research Manitoba. (« conseil »)

"fund" means the Research Manitoba Fund referred to in section 12. (« Fonds »)

"minister" means the minister appointed by the Lieutenant Governor in Council to administer this Act. (« ministre »)

"Société" French version only

RESEARCH MANITOBA

Research Manitoba

2           The Manitoba Health Research Council is continued as a corporation without share capital under the name "Research Manitoba", consisting of the directors of the board appointed under section 5.

Mandate of Research Manitoba

3(1)        The mandate of Research Manitoba is to promote and support, and coordinate the funding of, research in the health, natural and social sciences, engineering and the humanities in Manitoba.

Additional activities of Research Manitoba

3(2)         Subject to this Act, to carry out its mandate, Research Manitoba may

(a) financially assist research in Manitoba;

(b) publish and distribute scientific, technical and economic information relating to the work of Research Manitoba; and

(c) advise and make recommendations to the minister on matters related to research in the health, natural and social sciences, engineering and the humanities in Manitoba.

Relationship to government

3(3)        In carrying out its mandate, Research Manitoba is to operate within a framework of accountability established by the minister, who may give Research Manitoba general direction on matters that relate to its mandate.

Legal capacity

4(1)        Subject to this Act and any restrictions specified in the regulations, Research Manitoba has the capacity, rights, powers and privileges of a natural person that are necessary for carrying out its mandate.

Corporations Act not to apply

4(2)        Except as otherwise provided in the regulations, The Corporations Act does not apply to Research Manitoba.

BOARD OF DIRECTORS

Board

5(1)        The business and affairs of Research Manitoba are to be managed by a board of directors consisting of at least 9 but not more than 17 directors.

Appointments

5(2)        The directors are to be appointed by the Lieutenant Governor in Council on the recommendation of the minister.

Considerations

5(3)        In recommending directors, the minister is to consider

(a) the types and degree of research carried out by Manitoba`s educational institutions;

(b) the interests of business and industry in using research outcomes to grow Manitoba`s economy; and

(c) the recommendations of the board.

Chair

6(1)        The chair of the board is to be appointed by the Lieutenant Governor in Council.

Vice-chair

6(2)        A vice-chair must be elected by the directors from among themselves.

Function of vice-chair

6(3)        The vice-chair is to act as the chair if the chair is absent or unable to act, or if the position of chair is vacant.

Term of office — chair

7(1)        The chair is to be appointed for a term of not more than five years.

Term of office — other directors

7(2)        A director other than the chair is to be appointed for a term not exceeding three years.

Terms to be staggered

7(3)        When appointing a director and establishing the director's term of office, the Lieutenant Governor in Council is to have regard for the need to ensure that the terms of office of not more than half of the board members expire in any one year.

Further terms

7(4)        Each director is eligible to hold office for a second term, but not for a further term until at least one year has elapsed since the end of his or her second term. For certainty, either of the terms may be as chair or as a director other than the chair.

Appointment continues

7(5)        A director continues to hold office until he or she is re-appointed, the appointment is revoked or a successor is appointed.

By-laws

8           The board may make by-laws respecting the conduct and management of the business and affairs of Research Manitoba, including

(a) by-laws respecting the calling and conduct of board meetings;

(b) by-laws establishing committees; and

(c) by-laws establishing a code of ethics and a conflict of interest policy for directors, officers and employees of Research Manitoba.

Remuneration of directors

9           The directors are to be paid such remuneration and expenses as the board determined by by-law.

FINANCIAL MATTERS AND ANNUAL REPORT

Fiscal year

10          The fiscal year of Research Manitoba ends on March 31 of each year.

Grants

11          The Minister of Finance, on the requisition of the minister, may make grants to the Research Manitoba out of money appropriated by the Legislature for that purpose.

Fund continued

12(1)       The Health Research Council Fund is continued as the Research Manitoba Fund.

Fund to be a separate account

12(2)       The board must ensure that amounts credited to the fund are held in a separate account in a financial institution, as defined in The Financial Administration Act.

Amounts held in fund

13          Until used in accordance with Research Manitoba's mandate, the board must ensure that the following amounts are held in the fund:

(a) grants from the government made under section 11;

(b) contributions received by Research Manitoba by way of agreement, grant, gift, donation or bequest;

(c) interest or other income earned from the investment of amounts described in clauses (a) and (b).

Auditor

14          The board must appoint an independent auditor to audit the records, accounts and financial transactions of Research Manitoba for each fiscal year.

Annual report

15(1)       Within six months after the end of each fiscal year, Research Manitoba must prepare an annual report on its activities and operations during that fiscal year. The report must include Research Manitoba's audited financial statements for the year.

Report tabled in Assembly

15(2)       The minister must table a copy of the report in the Legislative Assembly within 15 days after receiving it if the Assembly is sitting or, if it is not, within 15 days after the next sitting begins.

Further information

15(3)       Research Manitoba must provide the minister with any financial or other information that the minister may request.

Reviews

16(1)       The minister may in writing appoint one or more persons to review and report on any matter connected with the conduct and management of the business and affairs of Research Manitoba, in accordance with the terms of reference established by the minister.

Access to records, etc.

16(2)       Research Manitoba must cooperate with the review, and provide the person or persons carrying out the review access to information and records that are reasonably required for the purpose of the review.

REGULATIONS

Regulations

17          The Lieutenant Governor in Council may make regulations

(a) respecting the extent to which The Corporations Act applies to Research Manitoba;

(b) for the purpose of section 4, prescribing additional powers for the corporation or restricting the powers of the corporation. TRANSITION

Research Manitoba assumes place of Manitoba Health Research Council

18(1)       On the coming into force of this Act,

(a) every employee of The Manitoba Health Research Council is continued as an employee of Research Manitoba;

(b) all property, and interests in property, of The Manitoba Health Research Council is vested in Research Manitoba and may be dealt with by Research Manitoba in its own name, subject to any trusts or other conditions applicable to the property;

(c) all other assets, liabilities, rights, agreements, duties, functions and obligations of The Manitoba Health Research Council are vested in Research Manitoba, and Research Manitoba may deal with them in its own name; and

(d) all rights of action and actions by or against The Manitoba Health Research Council may be continued or maintained by or against Research Manitoba.

References to Manitoba Health Research Council

18(2)       Any reference to The Manitoba Health Research Council in any regulation, by-law, contract, agreement, or other document or record is deemed to be a reference to Research Manitoba.

Transitional re existing members

19          A member of The Manitoba Health Research Council who holds office on the coming into force of this Act

(a) continues to hold office as a board member of Research Manitoba until his or her term expires; and

(b) may be re-appointed in accordance with this Act.

REPEAL, C.C.S.M. REFERENCE AND COMING INTO FORCE

Repeal

20          The Manitoba Health Research Council Act, R.S.M. 1987, c. H28, is repealed.

C.C.S.M. reference

21          This Act may be referred to as chapter R118 of the Continuing Consolidation of the Statutes of Manitoba.

Coming into force

22          This Act comes into force on the day it receives royal assent.

Explanatory Note

This Bill implements measures in the 2014 Manitoba Budget and makes various other amendments to tax and financial legislation.

Budget Measures

The budget measures implemented by this Bill include the following:

Emissions Tax on Petroleum Coke (Part 1)

  • implementing an emissions tax on petroleum coke at the rate of $31.90 per tonne of petroleum coke, and renaming and making related amendments to The Emissions Tax on Coal Act (s. 2 to 5 and 64)

Employment and Income Assistance (Shelter Assistance) (Part 2)

  • establishing a shelter benefit available to recipients of income or general assistance and other persons who meet the eligibility requirements, and renaming The Employment and Income Assistance Act and making related amendments to it and six other Acts (s. 7 to 21 and 23 to 28)
  • providing for the transition to shelter assistance for persons currently receiving RentAid benefits (s. 22)

Income Tax (Part 4)

  • extending the manufacturing investment tax credit to December 31, 2017 (s. 39)
  • extending the co-op education and apprenticeship tax credit indefinitely and making the following changes:

    — increasing the maximum credit for level 1 and 2 apprentices to $5,000

    — increasing the tax credit for level 3, 4 and 5 and newly certified journeypersons to 15% of salary and wages

    — calculating the tax credit based on salary and wages paid in the taxation year rather than salary and wages paid for a level of apprenticeship or 12-month period of employment ending in the year

    — eliminating the requirement for a proof-of-credit certificate (s. 40)

  • extending the odour control tax credit to December 31, 2017 (s. 41)
  • extending the book publishing tax credit to December 31, 2017 (s. 43)
  • capping the cultural industries printing tax credit at $30,000 per eligible book title and adding new requirements for a book to be eligible:

    — it must contain at least 90% new material

    — it must be sold through an established distributor

    — the ratio of text to pictures must be at least 65%, except in the case of a children's book (s. 44)

  • extending the mineral exploration tax credit to cover flow-through share agreements entered into before April 1, 2018 (s. 46)
  • extending the community enterprise development tax credit to 2020 with the following improvements for eligible investments acquired on or after June 12, 2014:

    — increasing the credit from 30% to 45% of the cost of an eligible investment

    — increasing the maximum credit per year to $27,000 and making it fully refundable

    — extending the credit to eligible corporations with a permanent establishment in Manitoba (s. 34, 47 and 48)

  • improving the small business venture capital tax credit as follows for eligible investments acquired on or after June 12, 2014:

    — increasing the credit 30% to 45% of the cost of an eligible investment

    — increasing the maximum credit per year to $67,500 (s. 49 to 51)

Seniors' School Tax Rebate (Part 5)

  • providing a new seniors' school tax rebate that

    — is payable to a homeowner or spouse or common-law partner of a homeowner who, or whose spouse or common-law partner, is at least 64 years of age at the beginning of the year

    — is equal to the lesser of $235 and the amount by which the school tax exceeds the municipal tax reduction and education property tax credit (s. 56)

Civil Service Superannuation Act (Part 9)

  • allowing a non-matching employer to pay to the Civil Service Superannuation Fund the employer's actuarial liability for past service and be treated as if they were a matching employer in respect of that past service (s. 73)

Financial Administration Act (Part 9)

  • replacing the report and budget requirements under the Manitoba Building and Renewal Plan with the following requirements under the core infrastructure plan:

    — the government's financial management strategy tabled for each fiscal year beginning before 2019 must include the government's objective for core infrastructure investment

    — the report on outcomes tabled for each fiscal year beginning before 2019 must include a report comparing the incremental retail sales tax revenue to the amount by which core infrastructure expenditures exceed $729 million

    — any cumulative excess of incremental sales tax revenue over increased core infrastructure expenditures in a year beginning after 2013 must be included in subsequent estimates of core infrastructure expenditures within the period ending with the 2018-2019 fiscal year (s. 74)

Research Manitoba Act (Schedule)

  • continuing the Manitoba Health Research Council as Research Manitoba with a broader mandate to support research in health, natural and social sciences, engineering and the humanities (s. 75 and Schedule)

Other Amendments

    Other amendments to tax legislation include the following:

  • amendments to The Fuel Tax Act

    — to clarify the exemption for fuel used in a commercial logging operation (s. 30)

    — to clarify that tax paid on fuel used to produce electricity is refundable if the electricity is sold or the buyer pays tax on the electricity (s. 31)

  • various amendments to The Income Tax Act, including amendments

    — to clarify the definition "regulations" (s. 33)

    — to the definition "principal residence", which is relevant for the municipal tax reduction, the education property tax credit, the seniors' school tax credit and the new seniors' school tax rebate (s. 35 and 36)

    — to clarify that a property with more than one residence is not eligible for municipal tax reduction, set out the criteria and process to apply for municipal tax reduction, and clarify rules respecting the repayment of improperly granted municipal tax reductions (s. 38)

    — to clarify the treatment of government assistance in the calculation of certain tax credits (s. 41 and 42)

    — to establish rules for the employee share purchase tax credit, including rules that

    •   establish a process and criteria for registering an employee share ownership plan (ESOP)

    •   establish eligibility requirements for issuers and their shares

    •   increase the credit from 30% to 45% of the cost of an eligible share

    •   provide a refundable tax credit of up to $27,000 per year for eligible shares acquired in the year

    •   provide a non-refundable tax credit of up to $67,500 per year, less any refundable credit claimed in the year, for eligible shares acquired in the year and for unused credits carried over from other years

    •   establishing a tax credit limit of $202,500 per year for shares acquired under a registered ESOP designed to facilitate succession planning or an employee buyout or takeover

    •   establishing a tax credit limit of $27,000 per year for shares acquired under any other registered ESOP (s. 34 and 52)

  • various amendments to The Retail Sales Tax Act, including amendments

    — to clarify the exemption of welding tips and nozzles used in manufacturing (s. 59(1))

    — to extend the exemption for biomass materials to materials used to produce electricity (s. 59(1))

    — to provide an exemption for the sale of property by a partnership to a new corporation (s. 59(2) and (3))

    — to remove an unnecessary reference to state aircraft in the exemption for commercial aircraft (s. 59(4))

    — to exempt the rental of a vehicle used as a replacement for a damaged multijurisdictional vehicle (s. 59(5))

    — to provide an exemption for taxable property included in a bundle consisting primarily of non-taxable property (s. 59(6))

    — to clarify the due date for tax payable on a bulk sale (s. 60)

    — to correct an error in the French version (s. 61(1))

    — to provide that the refund in respect of a vehicle sold within 6 months of its purchase does not apply to a multijurisdictional vehicle on which prorated vehicle tax has been paid (s. 61(2))

    — to clarify the requirements for a request for refund of tax paid on a hospital bed (s. 61(3))

    — to provide for a refund of tax when a problem vehicle is returned to the manufacturer (s. 61(5))

    — to specify a power to make regulations respecting the taxation of interjurisdictional commercial vehicles (s. 62)

  • various amendments to The Tax Administration and Miscellaneous Taxes Act

    — to clarify that the director has the discretion to require an extra-provincial contractor to provide security in respect of the contractor's obligation to pay or remit tax (s. 65(1) and (3))

    — to specify the rate used during the infrastructure funding period to calculate the maximum amount an extra-provincial contractor may be required to secure (s. 65(2))

    — to clarify when the director may, for the purpose of an assessment or reassessment under The Retail Sales Tax Act, estimate the amount on which tax is payable (s. 66)

    — to clarify when the two-year limitation period for a refund of tax begins (s. 67)

    — to require a person who appeals a decision of the director or the Tax Appeals Commission to the Court of Queen's Bench to serve the other party to the appeal within 14 days (s. 68)

  • amendments to The Tobacco Tax Act

    — to clarify the price on which tax is to be determined for cigars (s. 70)

    — to repeal the power to make regulations in respect of tear tape (which is no longer used) (s. 71 and 72)