Income Tax Act (amended)
BILL NO. 36
4th Session, 61st General Assembly
61 Elizabeth II, 2012
Private Member's Bill
Food Bank Donation Tax Credit for Farmers Act
First Reading: April 20, 2012
This Bill provides a non-refundable tax credit of 25% of the wholesale value of agricultural products produced by Nova Scotia farmers and donated to Nova Scotia food banks.
Be it enacted by the Governor and Assembly as follows:
1 This Act may be cited as the Food Bank Donation Tax Credit for Farmers Act.
2 Chapter 217 of the Revised Statutes, 1989, the Income Tax Act, is amended by adding immediately after Section 11 the following Section:
11A (1) For the purpose of computing the tax payable under this Part by an individual who claims a food bank donation tax credit pursuant to Section 49A for a taxation year, the calculation set out in Section 11 shall be adjusted as provided by subsections (2) and (3) of this Section.
(2) The amount to be used for "B" in the formula set out in Section 11 is the lesser of
(a) $200 minus four times the amount of the tax credit claimed under Section 49A for the year; and
(b) that part of the individual's total gifts for the year under Section 118.1 of the Federal Act that was used to determine the amount deducted by the individual for the year under subsection 118.1(3) of that Act minus four times the amount of the tax credit claimed under Section 49A for the year.
(3) The amount to be used for "D" in the formula set out in Section 11 is the amount determined in clause (2)(b).
3 Chapter 217 is further amended by adding immediately after Section 49 the following Division heading and Section:
DIVISION CA - DEDUCTIONS AVAILABLE
TO FARMERS AND FARM CORPORATIONS
Farmers' Food Bank Donation Tax Credit
49A (1) In this Section,
(a) "agricultural product" has the meaning prescribed by the regulations made under this Section;
(b) "eligible donation" means the wholesale value of an agricultural product produced in the Province by an eligible farmer to an eligible food bank in the Province;
(c) "eligible farmer" means
(i) an individual who, alone or with persons related to the individual, carries on the business of farming in the Province, or
(ii) a corporation that carries on the business of farming in the Province;
(d) "eligible food bank" means a person or entity that
(i) is registered as a charity under the Federal Act,
(ii) is engaged in the Province in the distribution of food to the public without charge, and
(iii) satisfies such other conditions as may be prescribed by the regulations made under this Section.
(2) An eligible farmer may deduct from the amount of tax otherwise payable under this Act, for a taxation year ending after this Section comes into force, a food bank donation tax credit not exceeding the lesser of
(a) the amount of tax payable by the eligible farmer under this Act for the year before making a deduction under this Section; and
(b) the eligible farmer's food bank donation amount for the year as determined under subsection (3).
(3) An eligible farmer's food bank donation amount for a taxation year is determined as follows:
(a) determine the sum of the eligible farmer's eligible donations made in the year and in the previous five taxation years;
(b) multiply the amount determined under clause (a) by 25%;
(c) determine the sum of the amounts, if any, deducted under this Section for the previous five taxation years; and
(d) deduct the amount determined under clause (c) from the amount determined under clause (b) to determine the food bank donation amount for the year.
(4) Where, in a particular taxation year of an eligible farmer that is a member of a partnership, but is not a limited partner, an amount would, if the partnership were a eligible farmer, be determined in respect of the partnership under subsection (3) for its taxation year ending in that particular taxation year, the portion of that amount that may reasonably be considered to be the eligible farmer's share thereof is the amount required to be added in computing the food bank donation amount of the eligible farmer at the end of that particular taxation year.
(5) The Governor in Council may make regulations
(a) prescribing agricultural products;
(b) prescribing rules for determining the wholesale value of agricultural products;
(c) prescribing conditions that must be satisfied for a person or entity to be an eligible food bank;
(d) defining any word or expression used but not defined in this Act;
(e) respecting any matter or thing the Governor in Council considers necessary or advisable to effectively carry out the intent and purpose of this Section.
(6) The exercise by the Governor in Council of the authority contained in subsection (5) is regulations within the meaning of the Regulations Act.
(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.
4 This Act comes into force on such day as the Governor in Council order and declares by proclamation.
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