Bill S-203
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2nd Session, 40th Parliament,
57 Elizabeth II, 2009
senate of canada
BILL S-203
An Act to amend the Business Development Bank of Canada Act (municipal infrastructure bonds) and to make consequential amendments to another Act
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
1995, c. 28
BUSINESS DEVELOPMENT BANK OF CANADA ACT
1. Section 1 of the Business Development Bank of Canada Act is replaced by the following:
Short title
1. This Act may be cited as the Municipal Modernization and Business Development Bank of Canada Act.
2. The Act is amended by adding the following after section 4:
Additional purpose — municipal infrastructure bonds
4.1 An additional purpose of the Bank is to deal with applications, under section 33.1, for income tax exemptions for municipal bonds to finance infrastructure projects.
3. The Act is amended by adding the following after section 33:
MUNICIPAL INFRASTRUCTURE BONDS — INCOME TAX EXEMPTIONS
Application for exemption
33.1 (1) A municipality in Canada may apply to the Bank for an income tax exemption for bonds to be issued by the municipality to finance an infrastructure project.
Provincial approval needed
(2) A municipality may apply for an income tax exemption only if the municipality has received provincial approval to make the application.
Definition of “provincial approval”
(3) For the purposes of subsection (2), “provincial approval” means approval by the person or body specified, for that purpose, under the legislation of the province or, if no such person or body is specified, by the government of the province.
Grant of exemption
(4) The Bank shall grant an income tax exemption if it is satisfied that
(a) the proceeds of the issue of the bonds will be used for an infrastructure project; and
(b) any other requirements prescribed by the regulations are satisfied.
Publication of exemption
(5) The Bank shall publish a notice of any income tax exemption granted under this section in the Canada Gazette.
Effect of exemption
(6) Interest paid on a bond in respect of which an income tax exemption has been granted is exempt from income tax under the Income Tax Act.
Regulations
33.2 The Governor in Council may make regulations
(a) prescribing what qualifies as an infrastructure project for the purposes of section 33.1; and
(b) prescribing requirements for the purposes of paragraph 33.1(4)(b).
R.S., c. A-1
ACCESS TO INFORMATION ACT
4. Schedule II to the Access to Information Act is amended by striking out the reference to:
Business Development Bank of Canada Act
Loi sur la Banque de développement du Canada
and the corresponding reference to “section 37”.
5. Schedule II to the Act is amended by adding, in alphabetical order, a reference to:
Municipal Modernization and Business Development Bank of Canada Act
Loi sur la Banque de développement du Canada et la modernisation des municipalités
and a corresponding reference in respect of that Act to “section 37”.
COMING INTO FORCE
Coming into force
6. The provisions of this Act come into force on a day to be fixed by order of the Governor in Council.
Published under authority of the Senate of Canada
Available from:
Publishing and Depository Services
Public Works and Government Services Canada
Available from:
Publishing and Depository Services
Public Works and Government Services Canada
Explanatory Notes
Business Development Bank of Canada Act
Clause 1: Existing text of section 1:
1. This Act may be cited as the Business Development Bank of Canada Act.
Clause 2: New.
Clause 3: New.
Access to Information Act
Clause 5: New.