BILL 31
An Act to Amend the New Brunswick Income Tax Act
Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:
1 The heading “Tuition credit” preceding section 28 of the New Brunswick Income Tax Act, chapter N-6.001 of the Acts of New Brunswick, 2000, is repealed.
2 Section 28 of the Act is repealed.
3 The heading “Education credit” preceding section 29 of the Act is repealed.
4 Section 29 of the Act is repealed.
5 Section 30 of the Act is repealed and the following is substituted:
Unused tuition and education credits
30( 1) This section applies if an individual
(a) was resident in New Brunswick on December 31, 2016, and has unused tuition and education credits at the end of the 2016 taxation year or any subsequent taxation year, or
(b) became resident in New Brunswick after the 2016 taxation year and has unused tuition and education credits as determined under section 118.61 of the Federal Act at the end of the 2016 taxation year.
30( 2) References in this section to sections 118.5, 118.6 and 118.61 of the Federal Act are references to those sections of the Federal Act as they read on December 31, 2016.
30( 3) For the purpose of computing an individual’s tax payable under this Part for a taxation year after 2016, there may be deducted the lesser of
(a) the individual’s unused tuition and education credits at the end of the preceding taxation year, and
(b) the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Part, other than an amount deductible under this section and any of sections 17 to 24, 27 and 32.
30( 4) Subject to subsection (5), the amount of an individual’s unused tuition and education credits at the end of a taxation year after 2016 is the amount determined by the formula
A - B
where:
A is the amount of the individual’s unused tuition and education credits at the end of the preceding taxation year; and
B is the amount that the individual may deduct under subsection (3) for the year.
30( 5) If an individual was not resident in New Brunswick on December 31, 2016, but became resident in New Brunswick after the 2016 taxation year, the amount of the individual’s unused tuition and education credits at the end of the taxation year preceding the year the individual became resident in New Brunswick is the amount determined by the formula
C - D
where:
C is the amount of the individual’s unused tuition and education credits at the end of the 2016 taxation year, as determined under section 118.61 of the Federal Act if the percentage applied under sections 118.5 and 118.6 of the Federal Act had been the appropriate percentage for the year as defined in section 13 instead of the appropriate percentage as defined in the Federal Act; and
D is the total of the individual’s unused tuition and education credits deducted for each taxation year after the 2016 taxation year up to and including the taxation year preceding the year the individual became resident in New Brunswick, as determined under section 118.61 of the Federal Act if the percentage applied under sections 118.5 and 118.6 of the Federal Act had been the appropriate percentage for the year as defined in section 13 instead of the appropriate percentage as defined in the Federal Act.
6 The heading “Transfer of tax credits” preceding section 33 of the Act is repealed.
7 Section 33 of the Act is repealed.
8 Section 38 of the Act is repealed and the following is substituted:
Ordering of non-refundable credits
38 In computing an individual’s tax payable under this Part, the following provisions shall be applied in the following order: sections 17, 18, 19, 20, 21, 22, 23, 32, 24, 27, 30, 26, 25, 31, 35, 36, 34, 49, 49.1, 61, 50 and 61.1.
9 This Act comes into force on January 1, 2017.