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Income Tax Act (amended)

BILL NO. 140

(as introduced)

2nd Session, 60th General Assembly
Nova Scotia
57 Elizabeth II, 2008



Private Member's Bill



Income Tax Act
(amended)



Diana Whalen
Halifax Clayton Park



First Reading: April 28, 2008

(Explanatory Note)

Second Reading:

Third Reading:

Explanatory Note

This Bill provides a tax deduction for the purchase or lease of a fuel-efficient vehicle.

An Act to Amend Chapter 217
of the Revised Statutes, 1989,
the Income Tax Act,
Respecting Fuel-efficient Vehicles

Be it enacted by the Governor and Assembly as follows:

1 Chapter 217 of the Revised Statutes, 1989, the Income Tax Act, is amended by adding immediately after Section 38 the following heading and Section:

Subdivision ka - Fuel-efficient Vehicle Tax Credit

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.


This page and its contents published by the Office of the Legislative Counsel, Nova Scotia House of Assembly, and © 2008 Crown in right of Nova Scotia. Created April 28, 2008. Send comments to legc.office@gov.ns.ca.