Bill C-288: An Act to amend the Income Tax Act (tax credit for new graduates working in designated regions)

C-288 Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 HOUSE OF COMMONS OF CANADA BILL C-288 An Act to amend the Income Tax Act (tax credit for new graduates working in designated regions) Reprinted as amended by the Standing Committee on Finance as a working copy for the use of the House of Commons at Report Stage and as reported to the House on December 2, 2009 Ms. Deschamps 402047 SUMMARY This enactment amends the Income Tax Act to give every new graduate who settles in a designated region a tax credit equal to the lesser of (a) 40% of the individual's salary or wages, (b) $3,000, and (c) the amount by which $8,000 exceeds all amounts paid for a preceding taxation year. The purpose of this measure is to encourage new graduates to settle in designated regions, thereby curbing the exodus of young people from those regions and promoting their economic development. Also available on the Parliament of Canada Web Site at the following address:http://www.parl.gc.ca 2nd Session, 40th Parliament, 57-58 Elizabeth II, 2009 house of commons of canada BILL C-288 An Act to amend the Income Tax Act (tax credit for new graduates working in designated regions) R.S., c. 1 (5th Supp.) Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 1. The Income Tax Act is amended by adding the following after section 118.7: Definitions 118.71 (1) The definitions in this subsection apply in this section. “designated educational institution”« établissement d’enseignement agréé » “designated educational institution” has the meaning assigned by subsection 118.6(1). “designated region”« région désignée » “designated region” has the meaning assigned by section 3 of the Regional Development Incentives Act, but does not include metropolitan areas with a population of more than 200,000. “qualifying employment”« emploi admissible » “qualifying employment” means an office or employment that the individual begins to hold in the 24-month period that follows the date on which the individual successfully completes the courses and, where applicable, the internships leading to the awarding of a recognized diploma, or the date on which the individual is awarded a recognized diploma that is a master’s or doctoral degree under an educational program requiring the writing of an essay, dissertation or thesis, if (a) the individual begins to perform the duties of the office or employment after January 1, 2009; (b) at the time that the individual takes up the office or employment, the establishment of the individual’s employer at which the individual ordinarily performs the duties of that office or employment, or to which the individual is ordinarily attached, is situated in a designated region; and (c) the knowledge and skills obtained during the individual’s training or educational program are related to the duties performed by the individual in connection with the office or employment. “recognized diploma”« diplôme reconnu » “recognized diploma” means a degree, diploma or attestation awarded by a designated educational institution. Tax credit for new graduates working in designated regions (2) For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted an amount equal to the lesser of (a) the amount that is 40% of the aggregate of all amounts each of which is the salary or wages of the individual for the year from qualifying employment, (b) $3,000, and (c) the amount by which $8,000 exceeds the aggregate of all amounts each of which is an amount that the individual deducted under this section for the purpose of computing the tax payable, or that the individual is deemed to have paid to the Receiver General under this section for a preceding taxation year. Deemed residence (3) For the purposes of paragraph (2)(a), an individual who was resident in a designated region in Canada immediately before the individual’s death is deemed to be resident in a designated region in Canada on December 31 of the year in which the individual died. Published under authority of the Speaker of the House of Commons