BILL NO. 140

38A (1) This Section applies to vehicles of a class prescribed by the Governor in Council.

(2) Subject to subsections (5) and (7), where in a taxation year a taxpayer purchases, or leases for two years or more, a new or used vehicle exceeding $12,000 in value, the taxpayer may deduct from tax otherwise payable by the taxpayer under this Act for the taxation year

(a) $1,000 if the vehicle has a fuel-efficiency rating of 8 litres or less per 100 kilometres of city driving; or

(b) $2,000 if the vehicle has a fuel-efficiency rating of 5 litres or less per 100 kilometres of city driving.

(3) In subsection (2), the fuel-efficiency rating is the fuel-efficiency rating determined by the Office of Energy Efficiency of Natural Resources Canada.

(4) To claim a deduction under subsection (2), a taxpayer shall provide the Minister of Finance with proof of purchase of a qualifying vehicle.

(5) A deduction pursuant to this Section may only be claimed once in any four-year period.

(6) Notwithstanding subsection (5), where a taxpayer does not claim the full amount set out in subsection (2), the taxpayer may claim the balance in subsequent taxation years.

(7) The moneys required for the purpose of this Section must be paid out of moneys appropriated for that purpose by the Legislature and, for greater certainty, no deduction may be made pursuant to this Section until the moneys are appropriated by the Legislature.