Bill C-253

2nd Session, 39th Parliament,

56-57 Elizabeth II, 2007-2008

house of commons of canada

BILL C-253

An Act to amend the Income Tax Act (deductibility of RESP contributions)

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

1. Paragraph 60(i) of the Income Tax Act is replaced by the following:

(i) any amount that is deductible under section 146 or 146.1 or subsection 147.3(13.1) in computing the income of the taxpayer for the year;

2. (1) Section 146.1 of the Act is amended by adding the following after subsection (2):

(2.01) There may be deducted in computing a taxpayer's income for a taxation year such amount as the taxpayer claims not exceeding the lesser of

(a) the total of all contributions made by the taxpayer into a registered education savings plan in the taxation year; and

(b) the RESP lifetime limit minus the total of all contributions made by the taxpayer into a registered education savings plan in previous taxation years, to a maximum of $5,000.

(2) Subsection 146.1(7.1) of the Act is amended by striking out the word “and” at the end of paragraph (a), by adding the word “and” at the end of paragraph (b) and by adding the following after paragraph (b):

(c) each refund of payments made in respect of any contribution paid by the taxpayer after 2005.

(3) Subsection 146.1(7.2) of the Act is repealed.