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Income Tax Act

[RSBC 1996] CHAPTER 215

Part 9 — Training Tax Credits

Division 1 — Definitions

Definitions

116  In this Part:

"eligible employer", in relation to a taxation year, means

(a) an individual subject to tax under section 2 (1) (a) for the taxation year, or

(b) a corporation that is subject to tax under section 2 (2), other than a corporation

(i)   all or part of whose taxable income is at any time in the taxation year exempt from tax under Part I of the federal Act, or

(ii)   that, at any time in the taxation year,

(A)  is exempt from tax under section 27, or

(B)  is controlled directly or indirectly in any manner whatever by one or more persons all or part of whose taxable income is exempt from tax under section 27 of this Act or under Part I of the federal Act;

"eligible recognized program" means a program prescribed under section 131 (1) (b);

"eligible training program" means a program prescribed under section 131 (1) (c);

"government assistance" means assistance from a government, municipality or other public authority, whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or any other form of assistance, but does not include an amount deemed to have been paid under section 127;

"industry training agreement" has the same meaning as in the Industry Training Authority Act;

"ineligible program" means an eligible recognized program designed to certify or license an individual in a trade prescribed in respect of British Columbia for the purposes of the definition of "eligible apprentice" in section 127 (9) of the federal Act;

"level 1 requirements" means the requirements established by regulation under section 131 (1) (d) for an eligible recognized program;

"level 2 requirements" means the requirements established by regulation under section 131 (1) (e) for an eligible recognized program;

"level 3 requirements" means the requirements established by regulation under section 131 (1) (f) for an eligible training program;

"level 4 or higher requirements" means the requirements established by regulation under section 131 (1) (g) for an eligible training program.

"non-government assistance" has the same meaning as in section 127 (9) of the federal Act.

Division 2 — Tax Credits for Individuals

Application of this Division

117  This Division applies to taxation years beginning after December 31, 2006 and ending before January 1, 2015.

Basic tax credit for individuals

118  (1) This section applies to an individual for a taxation year if the individual meets the following requirements:

(a) the individual was resident in British Columbia at the end of December 31 of the taxation year;

(b) the individual was registered in an eligible recognized program, other than an ineligible program, in the taxation year;

(c) the individual completed, in the taxation year, the level 1 requirements or the level 2 requirements for the program referred to in paragraph (b);

(d) any other prescribed requirements.

(2) An individual may claim a tax credit of $1 000 for the taxation year for each of the level 1 requirements or level 2 requirements completed by the individual in the taxation year.

Completion tax credit for individuals

119  (1) This section applies to an individual for a taxation year if the individual

(a) was resident in British Columbia at the end of December 31 of the taxation year,

(b) was registered in an eligible training program in the taxation year,

(c) completed, in the taxation year, the level 3 requirements or the level 4 or higher requirements for the eligible training program, and

(d) meets any other prescribed requirements.

(2) An individual may claim a tax credit for the taxation year in the amount that is the total of the following:

(a) if the individual completed in the taxation year the level 3 requirements for an eligible training program, $2 000;

(b) if the individual completed in the taxation year one or more of the level 4 or higher requirements for an eligible training program, $2 500 for each of the level 4 or higher requirements completed in the taxation year.

Certification tax credit for individuals

119.1  (1) This section applies to an individual for a taxation year if the individual meets the following requirements:

(a) the individual was resident in British Columbia at the end of December 31 of the taxation year;

(b) the individual was not registered in an eligible recognized program or eligible training program referred to in paragraph (c) in the taxation year;

(c) the individual has received a Certificate of Qualification from the Industry Training Authority in the taxation year

(i)   for completing an eligible recognized program or an eligible training program, other than an ineligible program, after passing a challenge exam, or

(ii)   for completing a prescribed eligible recognized program or a prescribed eligible training program, other than an ineligible program;

(d) any other prescribed requirements.

(2) An individual may claim a tax credit for the taxation year in the amount that is the total of the following:

(a) if the individual completed in the taxation year one or more eligible recognized programs with level 1 requirements or level 2 requirements for completion, $1 000 for each of the eligible recognized programs completed in the taxation year;

(b) if the individual completed in the taxation year one or more eligible training programs with level 3 requirements for completion, $2 000 for each of the eligible training programs completed in the taxation year;

(c) if the individual completed in the taxation year one or more eligible training programs with level 4 or higher requirements for completion, $2 500 for each of the eligible training programs completed in the taxation year.

Enhanced tax credit for individuals

120  (1) This section applies to an individual for a taxation year if

(a) the individual

(i)   may claim a tax credit under section 118, 119 or 119.1 for the taxation year, or

(ii)   was an eligible apprentice, as defined in section 127 (9) of the federal Act, in the taxation year and resident in British Columbia at the end of December 31 of the taxation year, and

(b) the individual

(i)   is entitled to a deduction under section 118.3 (1) of the federal Act for the taxation year, or

(ii)   is registered as an Indian under the Indian Act (Canada).

(2) An individual referred to in subsection (1) may claim a tax credit for a taxation year in the amount of 50% of the total of the following:

(a) the amount the individual has claimed as a tax credit for the taxation year under section 118[basic tax credit for individuals];

(b) the amount the individual has claimed as a tax credit for the taxation year under section 119[completion tax credit for individuals];

(c) the amount the individual has claimed as a tax credit for the taxation year under section 119.1[certification tax credit for individuals];

(d) the amount the individual has received in the taxation year that is an amount referred to in section 56 (1) (n.1) of the federal Act [federal apprenticeship incentive grant].

(3) [Repealed 2010-18-29.]

Division 3 — Tax Credits for Employers

Definition for this Division

121  In this Division, "applicable period" means the period beginning on January 1, 2007 and ending on December 31, 2014.

Basic tax credit for employers

122  (1) In this section:

"eligible period", in relation to an employee employed by an eligible employer in a taxation year of the eligible employer, means that part of the taxation year that

(a) is within 24 months after the date the employee entered into the industry training agreement, and

(b) is in the applicable period;

"employee" means an individual who is registered in an eligible recognized program.

(2) This section applies to an eligible employer for a taxation year in respect of an employee if

(a) the employee is employed in a position that

(i)   is in a business carried on in British Columbia in the taxation year by the eligible employer, and

(ii)   relates to the eligible recognized program, other than an ineligible program, in which the employee is registered in the taxation year, and

(b) the employee has an eligible period in the taxation year.

(3) An eligible employer may claim a tax credit for the taxation year in respect of the employee in the amount that is the lesser of

(a) $4 000, and

(b) 20% of the amount determined by the following formula:

amount = salary and wages – designated assistance
where
designated assistance  =  the total of all amounts of government assistance and non-government assistance that can reasonably be considered to be in respect of the salary and wages payable in the eligible period to the employee and that, at the time of filing of the eligible employer's return of income for the taxation year,
    (i) the eligible employer has received or is entitled to receive or can reasonably be expected to receive,
    (ii) have not been repaid under a legal obligation to do so, and
    (iii) have not otherwise reduced the salary and wages;
salary and wages  =  the amount of salary and wages payable by the eligible employer in the eligible period to the employee in respect of the employment referred to in subsection (2) (a), other than remuneration that is the following:
    (i) profits;
    (ii) bonuses;
    (iii) amounts described in section 6 or 7 of the federal Act;
    (iv) amounts deemed to be incurred under section 78 (4) of the federal Act.

Completion tax credit for employers

123  (1) In this section:

"completion date", in respect of an employee, means the date on which the employee completed the level 3 requirements or the level 4 or higher requirements for an eligible training program;

"eligible period", in relation to an employee completing the level 3 requirements or the level 4 or higher requirements for an eligible training program, means the period that

(a) ends at any time in the month that includes the employee's completion date for that level,

(b) does not exceed 12 months, and

(c) begins no earlier than January 1, 2007;

"employee" means an individual who is registered in an eligible training program.

(2) This section applies to an eligible employer for a taxation year in respect of an employee if

(a) the employee is employed in a position that

(i)   is in a business carried on in British Columbia in the taxation year by the eligible employer, and

(ii)   relates to the eligible training program in which the employee is registered in the taxation year, and

(b) the employee's completion date is in the taxation year and in the applicable period.

(3) An eligible employer may claim a tax credit for the taxation year in respect of the employee in the amount that is the total of the following:

(a) if the employee completed in the taxation year the level 3 requirements for an eligible training program, the lesser of

(i)   $2 500, and

(ii)   15% of the amount determined under subsection (4);

(b) if the employee completed in the taxation year the level 4 or higher requirements for an eligible training program, the lesser of

(i)   $3 000, and

(ii)   15% of the amount determined under subsection (4).

(4) The amount for the purpose of subsection (3) (a) (ii) or (b) (ii) is the amount determined by the following formula:

amount = salary and wages – designated assistance
where
designated assistance  =  the total of all amounts of government assistance and non-government assistance that can reasonably be considered to be in respect of the salary and wages payable in the eligible period to the employee and that, at the time of filing of the eligible employer's return of income for the taxation year,
    (a) the eligible employer has received or is entitled to receive or can reasonably be expected to receive,
    (b) have not been repaid under a legal obligation to do so, and
    (c) have not otherwise reduced the salary and wages;
salary and wages  =  the amount of salary and wages payable by the eligible employer in the eligible period to the employee in respect of the employment referred to in subsection (2) (a), other than remuneration that is the following:
    (a) profits;
    (b) bonuses;
    (c) amounts described in section 6 or 7 of the federal Act;
    (d) amounts deemed to be incurred under section 78 (4) of the federal Act.

Enhanced tax credit for employers

124  (1) In this section, "employee" means an employee, as defined in section 122 or 123, who

(a) is entitled to a deduction under section 118.3 (1) of the federal Act for the taxation year, or

(b) is registered as an Indian under the Indian Act (Canada).

(2) An eligible employer may claim a tax credit for a taxation year in respect of an employee in the amount of 50% of the total of the following:

(a) the amount the eligible employer may claim as a tax credit for the taxation year under section 122[basic tax credit for employers] in respect of the employee;

(b) the amount the eligible employer may claim as a tax credit for the taxation year under section 123[completion tax credit for employers] in respect of the employee.

Enhanced tax credit for employers — eligible apprentice

124.1  (1) In this section:

"apprenticeship expenditure" has the same meaning as in section 127 (9) of the federal Act;

"eligible apprentice" has the same meaning as in section 127 (9) of the federal Act except that the reference to "apprenticeship contract" in that section is to be read as "industry training agreement";

"eligible period", in relation to an eligible apprentice employed by an eligible employer in a taxation year of the eligible employer, means that part of the taxation year that

(a) is within 24 months after the date the eligible apprentice entered into the industry training agreement, and

(b) is in the applicable period;

"eligible salary and wages" has the same meaning as in section 127 (9) of the federal Act;

"government assistance" does not include a deduction under section 127 (5) of the federal Act in respect of an apprenticeship expenditure.

(2) This section applies to an eligible employer for a taxation year in respect of an eligible apprentice if

(a) the eligible apprentice is employed in a position that

(i)   is in a business carried on in British Columbia in the taxation year by the eligible employer, and

(ii)   relates to the trade in respect of which the eligible apprentice has entered into an industry training agreement, and

(b) the eligible apprentice

(i)   is entitled to a deduction under section 118.3 (1) of the federal Act for the taxation year, or

(ii)   is registered as an Indian under the Indian Act (Canada).

(3) An eligible employer may claim a tax credit for a taxation year in respect of an eligible apprentice in the amount that is the lesser of

(a) $1 000, and

(b) 5.5% of the amount determined by the following formula:

amount = salary and wages – designated assistance
where
designated assistance  =  the total of all amounts of government assistance and non-government assistance that can reasonably be considered to be in respect of the salary and wages payable in the eligible period to the eligible apprentice and that, at the time of filing of the eligible employer's return of income for the taxation year,
    (i) the eligible employer has received or is entitled to receive or can reasonably be expected to receive,
    (ii) have not been repaid under a legal obligation to do so, and
    (iii) have not otherwise reduced the salary and wages;
salary and wages  =  the amount of the eligible salary and wages payable by the eligible employer in the taxation year to the eligible apprentice in respect of the eligible apprentice's employment, in the taxation year and in the applicable period, in a business carried on in British Columbia in the taxation year by the eligible employer.

No credits for eligible industry employer

124.2  If in a taxation year an eligible employer is an eligible industry employer, as defined in section 126.1, the eligible employer may not claim a tax credit under section 122, 123, 124 or 124.1 for the taxation year.

Restrictions on credits: multiple employers

125  (1) If 2 or more eligible employers who are not dealing with each other at arm's length may claim a tax credit under this Division for a particular period in respect of an employee, the total of all amounts claimed under this Division may not exceed the maximum amount that would be claimed under this Division for the particular period by any one of those eligible employers for that employee if that eligible employer were the only employer entitled to claim a tax credit under this Division for the particular period.

(2) The Commissioner of Income Tax may fix the portions of a tax credit claimed under this Division if the eligible employers referred to in subsection (1) cannot agree as to what portion of the tax credit each may claim.

Restrictions on credits: partnership

126  (1) If in a taxation year an eligible employer is a member of a partnership, other than a specified member, as defined in section 248 (1) of the federal Act, the eligible employer may claim a tax credit under section 122, 123, 124 or 124.1 for the taxation year in the amount that is the appropriate portion of the amount determined under section 122, 123, 124 or 124.1 for the partnership for its taxation year ending in the taxation year of the eligible employer.

(2) In determining, for the purpose of subsection (1), the amount under section 122, 123, 124 or 124.1 for a partnership for a taxation year, the following rules apply:

(a) in this Division, the references to "eligible employer" are to be read as "partnership";

(b) in sections 122 (3) (b), 123 (4) and 124.1 (3), in the descriptions of "designated assistance", the reference to "at the time of filing of the eligible employer's return of income for the taxation year" is to be read as "on or before the filing-due date of the partnership for the taxation year";

(c) the amount is determined as if

(i)   the partnership were a person,

(ii)   its fiscal period were its taxation year, and

(iii)   its filing-due date were its filing-due date for the year if it were a corporation;

(d) the appropriate portion is that portion that may reasonably be considered to be the eligible employer's share of the amount determined under section 122, 123, 124 or 124.1.

Division 3.1 — Tax Credits for Shipbuilding and Ship Repair Industry Employers

Definitions for this Division

126.1  In this Division:

"applicable period" means the period beginning on the prescribed date and ending on December 31, 2019;

"eligible industry employer", in relation to a taxation year, means an individual or a corporation

(a) that is an eligible employer in the taxation year, and

(b) whose principal business is the construction, repair or conversion of ships;

"ship" means a seagoing vessel propelled by engine, but does not include

(a) a vessel ordinarily used for personal or recreational purposes, or

(b) a prescribed vessel.

Basic tax credit for eligible industry employers

126.2  (1) In this section:

"eligible industry program" means

(a) an eligible recognized program, or

(b) an accredited program, as defined in the Industry Training Authority Act;

"eligible period", in relation to an employee employed by an eligible industry employer in a taxation year of the eligible industry employer, means that part of the taxation year that

(a) is within 24 months after the date the employee entered into the industry training agreement, and

(b) is in the applicable period;

"employee" means an individual who is registered in an eligible industry program.

(2) This section applies to an eligible industry employer for a taxation year in respect of an employee if

(a) the employee is employed in a position that

(i)   is in a business carried on in British Columbia in the taxation year by the eligible industry employer, and

(ii)   relates to the eligible industry program in which the employee is registered in the taxation year, and

(b) the employee has an eligible period in the taxation year.

(3) An eligible industry employer may claim a tax credit for the taxation year in respect of the employee in the amount that is the lesser of

(a) $5 250, and

(b) 20% of the amount determined by the following formula:

amount = salary and wages – designated assistance
where
designated assistance = the total of all amounts of government assistance and non-government assistance that can reasonably be considered to be in respect of the salary and wages payable in the eligible period to the employee and that, at the time of filing of the eligible industry employer's return of income for the taxation year,
    (i) the eligible industry employer has received or is entitled to receive or can reasonably be expected to receive,
    (ii) have not been repaid under a legal obligation to do so, and
    (iii) have not otherwise reduced the salary and wages;
salary and wages = the amount of salary and wages payable by the eligible industry employer in the eligible period to the employee in respect of the employment referred to in subsection (2) (a), other than remuneration that is the following:
    (i) profits;
    (ii) bonuses;
    (iii) amounts described in section 6 or 7 of the federal Act;
    (iv) amounts deemed to be incurred under section 78 (4) of the federal Act.

Completion tax credit for eligible industry employers

126.3  (1) In this section:

"completion date", in respect of an employee, means the date on which the employee completed the level 3 requirements or the level 4 or higher requirements for an eligible training program;

"eligible period", in relation to an employee completing the level 3 requirements or the level 4 or higher requirements for an eligible training program, means the period that

(a) ends at any time in the month that includes the employee's completion date for that level, and

(b) does not exceed 12 months;

"employee" means an individual who is registered in an eligible training program.

(2) This section applies to an eligible industry employer for a taxation year in respect of an employee if

(a) the employee is employed in a position that

(i)   is in a business carried on in British Columbia in the taxation year by the eligible industry employer, and

(ii)   relates to the eligible training program in which the employee is registered in the taxation year, and

(b) the employee's completion date is in the taxation year and in the applicable period.

(3) If an employee completed in the taxation year the level 3 requirements or the level 4 or higher requirements for an eligible training program, the eligible industry employer may claim a tax credit for the taxation year in respect of each level completed in the taxation year by the employee in the amount that is the lesser of

(a) $5 250, and

(b) 20% of the amount determined by the following formula:

amount = salary and wages – designated assistance
where
designated assistance = the total of all amounts of government assistance and non-government assistance that can reasonably be considered to be in respect of the salary and wages payable in the eligible period to the employee and that, at the time of filing of the eligible industry employer's return of income for the taxation year,
    (i) the eligible industry employer has received or is entitled to receive or can reasonably be expected to receive,
    (ii) have not been repaid under a legal obligation to do so, and
    (iii) have not otherwise reduced the salary and wages;
salary and wages = the amount of salary and wages payable by the eligible industry employer in the eligible period to the employee in respect of the employment referred to in subsection (2) (a), other than remuneration that is the following:
    (i) profits;
    (ii) bonuses;
    (iii) amounts described in section 6 or 7 of the federal Act;
    (iv) amounts deemed to be incurred under section 78 (4) of the federal Act.

Enhanced tax credit for eligible industry employers

126.4  (1) In this section, "employee" means an employee, as defined in section 126.2 or 126.3, who

(a) is entitled to a deduction under section 118.3 (1) of the federal Act for the taxation year, or

(b) is registered as an Indian under the Indian Act (Canada).

(2) An eligible industry employer may claim a tax credit for a taxation year in respect of an employee in the amount of 50% of the total of the following:

(a) the amount the eligible industry employer may claim as a tax credit for the taxation year under section 126.2[basic tax credit for eligible industry employers] in respect of the employee;

(b) the amount the eligible industry employer may claim as a tax credit for the taxation year under section 126.3[completion tax credit for eligible industry employers] in respect of the employee.

Restrictions on credits: multiple eligible industry employers

126.5  (1) If 2 or more eligible industry employers who are not dealing with each other at arm's length may claim a tax credit under this Division for a particular period in respect of an employee, the total of all amounts claimed under this Division may not exceed the maximum amount that would be claimed under this Division for the particular period by any one of those eligible industry employers for that employee if that eligible industry employer were the only employer entitled to claim a tax credit under this Division for the particular period.

(2) The Commissioner of Income Tax may fix the portions of a tax credit claimed under this Division if the eligible industry employers referred to in subsection (1) cannot agree as to what portion of the tax credit each may claim.

Restrictions on credits: partnership

126.6  (1) If in a taxation year an eligible industry employer is a member of a partnership, other than a specified member, as defined in section 248 (1) of the federal Act, the eligible industry employer may claim a tax credit under section 126.2, 126.3 or 126.4 for the taxation year in the amount that is the appropriate portion of the amount determined under section 126.2, 126.3 or 126.4 for the partnership for its taxation year ending in the taxation year of the eligible industry employer.

(2) In determining, for the purpose of subsection (1), the amount under section 126.2, 126.3 or 126.4 for a partnership for a taxation year, the following rules apply:

(a) in this Division, the references to "eligible industry employer" are to be read as "partnership";

(b) in sections 126.2 (3) (b) and 126.3 (3) (b), in the descriptions of "designated assistance", the reference to "at the time of filing of the eligible industry employer's return of income for the taxation year" is to be read as "on or before the filing-due date of the partnership for the taxation year";

(c) the amount is determined as if

(i)   the partnership were a person,

(ii)   its fiscal period were its taxation year, and

(iii)   its filing-due date were its filing-due date for the year if it were a corporation;

(d) the appropriate portion is that portion that may reasonably be considered to be the eligible industry employer's share of the amount determined under section 126.2, 126.3 or 126.4.

Division 4 — Administration

Deemed payment

127  A taxpayer that has claimed and is eligible for a tax credit under this Part for a taxation year is deemed to have paid, at the time referred to in section 156.1 (4) or 157 (1) (b) of the federal Act, as the applicable section relates to the taxation year of the taxpayer, the amount of the tax credit on account of the taxpayer's tax payable under this Act.

Filing requirements

128  (1) A taxpayer who wishes to claim a tax credit under this Part in respect of a taxation year must file, with the taxpayer's return of income filed under section 29 for the taxation year,

(a) an application for the tax credit in the form, and containing the information, required by the Commissioner of Income Tax, and

(b) other records required by the Commissioner of Income Tax.

(2) A taxpayer is not entitled to a tax credit under this Part in respect of a taxation year unless, within 36 months after the end of the taxation year, the taxpayer files the form containing the information required under subsection (1).

Powers of audit

129  Without limiting any provision of this Act or the federal Act, for the purpose of determining eligibility for a tax credit under this Part, the Commissioner of Income Tax has powers equivalent to the federal minister under sections 230 (3), 231, 231.1 and 233 of the federal Act, and for that purpose those sections apply.

Collection and sharing of information

130  Without limiting any provision of this or any other enactment, the Provincial minister, the federal minister, if a collection agreement is in effect, the minister charged with the administration of the Industry Training Authority Act and the Industry Training Authority may

(a) collect any information that is relevant to an application for a tax credit being claimed or already claimed under this Part, and

(b) share with each other, in accordance with an information-sharing agreement entered into in accordance with section 65, any information respecting an application, an applicant or any other person if the information is relevant to a tax credit being claimed or already claimed under this Part.

Power to make regulations

131  (1) The Commissioner of Income Tax may make regulations as follows:

(a) [Repealed 2010-18-33.]

(b) prescribing as an eligible recognized program a program that is a recognized program, as defined in the Industry Training Authority Act;

(c) prescribing as an eligible training program a program that is an industry training program, as defined in the Industry Training Authority Act;

(d) for the purposes of this Part, establishing requirements for an eligible recognized program as level 1 requirements;

(e) for the purposes of this Part, establishing requirements for an eligible recognized program as level 2 requirements;

(f) for the purposes of this Part, establishing requirements for an eligible training program as level 3 requirements;

(g) for the purposes of this Part, establishing requirements for an eligible training program as level 4 requirements or requirements for a higher level;

(h) [Repealed 2010-18-33.]

(i) prescribing eligible recognized programs or eligible training programs for the purposes of section 119.1 (1) (c) (ii).

(2) In making regulations under subsection (1) (d) to (g), the Commissioner of Income Tax may do one or more of the following:

(a) establish different requirements for different eligible recognized programs and different eligible training programs;

(b) define classes of eligible recognized programs and eligible training programs and make different regulations for different classes of eligible recognized programs and eligible training programs;

(c) adopt a level of requirements established by the Industry Training Authority for an eligible recognized program or eligible training program

(i)   in whole, in part or with any changes considered appropriate, and

(ii)   as it stands at a specific date, as it stands at the time of adoption or as amended from time to time.

(2.1) Without limiting section 48 (1) and (2), the Lieutenant Governor in Council may make regulations as follows:

(a) defining any word or expression used in this Part;

(b) prescribing requirements for the purposes of section 118 (1) (d), 119 (1) (d) or 119.1 (1) (d).

(c) prescribing a date for the purposes of the definition of "applicable period" in section 126.1;

(d) prescribing vessels not included in the definition of "ship" in section 126.1.

(3) Regulations made under subsection (1) or (2.1) may be made retroactive to January 1, 2007 or a later date, and if made retroactive are deemed to have come into force on the specified date.

Contents  |  Part 1  |  Part 2  |  Part 3  |  Part 4  |  Part 5  |  Part 6  |  Part 7  |  Part 8  |  Part 9  |  Part 10  |  Part 11  |  Part 12