BILL 14

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 Section 60 of the New Brunswick Income Tax Act, chapter N-6.001 of the Acts of New Brunswick, 2000, is amended

(a)  by repealing subsection (3) and substituting the following:

60(3) Where an eligible corporation that produces an eligible project in New Brunswick files with its return of income for a taxation year, a New Brunswick film tax credit certificate issued in accordance with the regulations, the corporation is eligible for a refundable film tax credit for the taxation year which shall be determined by adding the following amounts:

(a)  an amount determined by multiplying the prescribed rate by the amount of eligible salaries paid in the taxation year; and

(b)  in the case of a regional project, an amount determined by multiplying the prescribed rate by the amount of eligible salaries paid in the taxation year and incurred after December 31, 2009.

(b)  by repealing subsection (3.1) and substituting the following:

60(3.1) The prescribed rate referred to in paragraph (3)(a) shall not exceed 40%.

(c)  by adding after subsection (3.1) the following:

60(3.2) The prescribed rate referred to in paragraph (3)(b) shall not exceed 10%.

(d)  in paragraph (4)(a) by striking out “January 1, 2010” and substituting “January 1, 2020”.

2 Subsection 124(1) of the Act is amended

(a)  in paragraph (e.1) by striking out “subsection 60(3)” and substituting “paragraph 60(3)(a)”;

(b)  by adding after paragraph (e.1) the following:

(e.2)  prescribing the rate for the purposes of paragraph 60(3)(b);

COMMENCEMENT

3 This Act comes into force on January 1, 2010.