Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Marginal note:Definitions

• 118.01 (1) The following definitions apply in this section.

  adoption period

  adoption period, in respect of an eligible child of an individual, means the period that

  • (a) begins at the earlier of the time that an application is made for registration with a provincial ministry responsible for adoption (or with an adoption agency licensed by a provincial government) and the time, if any, that an application related to the adoption is made to a Canadian court; and

  • (b) ends at the later of the time an adoption order is issued by, or recognized by, a government in Canada in respect of that child, and the time that the child first begins to reside permanently with the individual. (période d’adoption)

  eligible adoption expense

  eligible adoption expense, in respect of an eligible child of an individual, means an amount paid for expenses incurred during the adoption period in respect of the adoption of that child, including

  • (a) fees paid to an adoption agency licensed by a provincial government;

  • (b) court costs and legal and administrative expenses related to an adoption order in respect of that child;

  • (c) reasonable and necessary travel and living expenses of that child and the adoptive parents;

  • (d) document translation fees;

  • (e) mandatory fees paid to a foreign institution;

  • (f) mandatory expenses paid in respect of the immigration of that child; and

  • (g) any other reasonable expenses related to the adoption required by a provincial government or an adoption agency licensed by a provincial government. (dépense d’adoption admissible)

  eligible child

  eligible child, of an individual, means a child who has not attained the age of 18 years at the time that an adoption order is issued or recognized by a government in Canada in respect of the adoption of that child by that individual. (enfant admissible)

• Marginal note:Adoption expense tax credit

  (2) For the purpose of computing the tax payable under this Part by an individual for the taxation year that includes the end of the adoption period in respect of an eligible child of the individual, there may be deducted the amount determined by the formula

  A × B

  where

  A

  is the appropriate percentage for the taxation year; and

  B

  is the lesser of

  • (a) $15,000, and

  • (b) the amount determined by the formula

    C - D

    where

    C

    is the total of all eligible adoption expenses in respect of the eligible child, and

    D

    is the total of all amounts each of which is the amount of a reimbursement or any other form of assistance (other than an amount that is included in computing the individual’s income and that is not deductible in computing the individual’s taxable income) that any individual is or was entitled to receive in respect of an amount included in computing the value of C.

• Marginal note:Apportionment of credit

  (3) Where more than one individual is entitled to a deduction under this section for a taxation year in respect of the adoption of an eligible child, the total of all amounts so deductible shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals for that child if that individual were the only individual entitled to deduct an amount for the year under this section, and if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.

Marginal note:Definitions

• 118.02 (1) The following definitions apply in this section.

  digital news subscription

  digital news subscription, of an individual with a qualified Canadian journalism organization, means an agreement entered into between the individual and the qualified Canadian journalism organization, if

  • (a) the agreement entitles an individual to access content of the qualified Canadian journalism organization in digital form and that content is primarily written news; and

  • (b) the qualified Canadian journalism organization does not hold a licence as defined in subsection 2(1) of the Broadcasting Act. (abonnement aux nouvelles numériques)

  qualifying subscription expense

  qualifying subscription expense, for a taxation year, means the amount paid in the year for a digital news subscription of an individual with a qualified Canadian journalism organization and, for this purpose, if the digital news subscription provides access to content in non-digital form or content other than content of qualified Canadian journalism organizations, the amount considered to be paid for the digital news subscription shall not exceed

  • (a) the cost of a comparable digital news subscription with the qualified Canadian journalism organization that solely provides access to content of qualified Canadian journalism organizations in digital form; and

  • (b) if there is no such comparable digital news subscription, 1/2 of the amount actually paid. (dépense pour abonnement admissible)

• Marginal note:Digital news subscription tax credit

  (2) For the purpose of computing the tax payable under this Part by an individual for a taxation year that is before 2025, there may be deducted the amount determined by the formula

  A × B

  where

  A

  is the appropriate percentage for the year; and

  B

  is the lesser of

  • (a) $500, and

  • (b) the total of all amounts each of which is a qualifying subscription expense of the individual for the year.

• Marginal note:Apportionment of credit

  (3) If more than one individual is entitled to a deduction under this section for a taxation year in respect of a qualifying subscription expense, the total of all amounts so deductible shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals in respect of the qualifying subscription expense, if that individual were the only individual entitled to deduct an amount for the year under this section, and if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.

• Marginal note:Ceasing to qualify

  (4) For the purposes of subsection (1), if amounts paid under an agreement cease to be qualifying subscription expenses at any particular time in a calendar year and, at the particular time, the Minister has communicated or otherwise made available pursuant to paragraph 241(3.4)(b) that these amounts qualify as qualifying subscription expenses, amounts paid under that agreement are deemed to be qualifying subscription expenses — to the same extent that the amounts paid were considered to be qualifying subscription expenses immediately before the particular time — until the end of the calendar year in which the Minister communicates or otherwise makes available pursuant to paragraph 241(3.4)(b) that amounts paid under the agreement no longer qualify as qualifying subscription expenses.

• Marginal note:Notice to individuals

  (5) If an organization enters into a digital news subscription agreement with an individual and amounts paid under the agreement cease to be qualifying subscription expenses, the organization shall inform the individual that amounts paid under the agreement are no longer qualifying subscription expenses.

118.03 [Repealed, 2014, c. 39, s. 32]

118.031 [Repealed, 2016, c. 7, s. 15]

Marginal note:Definitions

• 118.04 (1) The following definitions apply in this section.

  eligible dwelling

  eligible dwelling of an individual, at any time, means a housing unit (including the land subjacent to the housing unit and the immediately contiguous land, but not including the portion of such land that exceeds the greater of 1/2 hectare and the portion of such land that the individual establishes is necessary for the use and enjoyment of the housing unit as a residence) located in Canada if

  • (a) the individual (or a trust under which the individual is a beneficiary) owns, whether jointly with another person or otherwise, at that time, the housing unit or a share of the capital stock of a co-operative housing corporation acquired for the sole purpose of acquiring the right to inhabit the housing unit owned by the corporation; and

  • (b) the housing unit is ordinarily inhabited at any time during the eligible period by the individual, by the individual’s spouse or common-law partner or former spouse or common-law partner or by a child of the individual. (logement admissible)

  eligible period

  eligible period means the period that begins on January 28, 2009 and that ends on January 31, 2010. (période d’admissibilité)

  individual

  individual does not include a trust. (particulier)

  qualifying expenditure

  qualifying expenditure of an individual means an outlay or expense that is made or incurred, by the individual or by a qualifying relation in respect of the individual during the eligible period, that is directly attributable to a qualifying renovation by the individual and that is the cost of goods acquired or services received during the eligible period and includes such an outlay or expense for permits required for, or for the rental of equipment used in the course of, the qualifying renovation, but does not include such an outlay or expense

  • (a) to acquire goods that have been used, or acquired for use or lease, by the individual or by a qualifying relation in respect of the individual, for any purpose whatever before they were acquired by the individual or the qualifying relation in respect of the individual;

  • (b) made or incurred under the terms of an agreement entered into before the eligible period;

  • (c) to acquire a property that can be used independently of the qualifying renovation;

  • (d) that is the cost of annual, recurring or routine repair or maintenance;

  • (e) to acquire a household appliance;

  • (f) to acquire an electronic home-entertainment device;

  • (g) for financing costs in respect of the qualifying renovation;

  • (h) made or incurred for the purpose of gaining or producing income from a business or property; or

  • (i) in respect of goods or services provided by a person not dealing at arm’s length with the individual, unless the person is registered for the purposes of Part IX of the Excise Tax Act. (dépense admissible)

  qualifying relation

  qualifying relation in respect of an individual means a person who is the individual’s spouse or common-law partner, or a child of the individual who has not attained the age of 18 years before the end of 2009 (other than a child who was, at any time during the eligible period, a married person, a person who is in a common-law partnership or a person who has a child). (proche admissible)

  qualifying renovation

  qualifying renovation by an individual, at any time, means a renovation or alteration, of a property that is at that time an eligible dwelling of the individual or of a qualifying relation in respect of the individual, that is of an enduring nature and that is integral to the eligible dwelling. (travaux de rénovation admissibles)

• Marginal note:Rules of application

  (2) For the purposes of this section,

  • (a) a qualifying expenditure of an individual includes an outlay or expense made or incurred by a co-operative housing corporation, a condominium corporation (or, for civil law, a syndicate of co-owners) or a similar entity (in this paragraph referred to as the “corporation”), in respect of a property that is owned, administered or managed by that corporation, and that includes an eligible dwelling of the individual, to the extent of the individual’s share of that outlay or expense, if

    • (i) the outlay or expense would be a qualifying expenditure of the corporation if the corporation were a natural person and the property were an eligible dwelling of that natural person, and

    • (ii) the corporation has notified the individual, in writing, of the individual’s share of the outlay or expense; and

  • (b) a qualifying expenditure of an individual includes an outlay or expense made or incurred by a trust, in respect of a property owned by the trust that includes an eligible dwelling of the individual, to the extent of the share of that outlay or expense that is reasonably attributable to the individual, having regard to the amount of the outlays or expenses made or incurred in respect of the eligible dwelling of the individual (including, for this purpose, common areas relevant to more than one eligible dwelling), if

    • (i) the outlay or expense would be a qualifying expenditure of the trust if the trust were a natural person and the property were an eligible dwelling of that natural person, and

    • (ii) the trust has notified the individual, in writing, of the individual’s share of the outlay or expense.

• Marginal note:Home renovation tax credit

  (3) For the purposes of computing the tax payable under this Part by an individual for the individual’s 2009 taxation year, there may be deducted the amount determined by the formula

  A × (B – $1,000)

  where

  A

  is the appropriate percentage for the taxation year; and

  B

  is the lesser of $10,000 and the total of all amounts, each of which is a qualifying expenditure of the individual.

• Marginal note:Interaction with medical expense credit

  (4) Notwithstanding paragraph 248(28)(b), an amount may be included in determining both an amount under subsection (3) and under section 118.2 if those amounts otherwise qualify to be included for the purposes of those provisions.

• Marginal note:Apportionment of credit

  (5) If more than one individual is entitled to a deduction under this section for a taxation year in respect of a qualifying expenditure of an individual, the total of all amounts so deductible shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals in respect of the qualifying expenditure, if that individual were the only individual entitled to deduct an amount for the year under this section, and if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.

Marginal note:Definitions

• 118.041 (1) The following definitions apply in this section.

  eligible dwelling

  eligible dwelling of an individual, at any time in a taxation year, means a housing unit (including the land subjacent to the housing unit and the immediately contiguous land, but not including the portion of that land that exceeds the greater of ½ hectare and the portion of that land that the individual establishes is necessary for the use and enjoyment of the housing unit as a residence) located in Canada if

  • (a) the individual (or a trust under which the individual is a beneficiary) owns — whether jointly with another person or otherwise — at that time, the housing unit or a share of the capital stock of a cooperative housing corporation acquired for the sole purpose of acquiring the right to inhabit the housing unit owned by the corporation; and

  • (b) the housing unit is ordinarily inhabited, or is reasonably expected to be ordinarily inhabited, at any time in the taxation year

    • (i) by the individual, if the individual is a qualifying individual, or

    • (ii) by the individual and a qualifying individual, if

      • (A) the individual is an eligible individual in respect of the qualifying individual, and

      • (B) the qualifying individual does not, throughout the taxation year, own — whether jointly with another person or otherwise — and ordinarily inhabit another housing unit in Canada. (logement admissible)

  eligible individual

  eligible individual, in respect of a qualifying individual for a taxation year, means

  • (a) an individual who is the qualifying individual’s spouse or common-law partner in the year;

  • (b) except if paragraph (c) applies, an individual who is entitled to deduct an amount under subsection 118.3(2) for the year in respect of the qualifying individual or would be if no amount was claimed for the year by the qualifying individual under subsection 118.3(1) or by the qualifying individual’s spouse or common-law partner under section 118.8; or

  • (c) in the case of a qualifying individual who has attained the age of 65 before the end of the year, an individual who

    • (i) claimed for the year a deduction under subsection 118(1) in respect of the qualifying individual because of

      • (A) paragraph (b) of the description of B in that subsection, or

      • (B) paragraph (d) of the description of B in that subsection where the qualifying individual is a parent, grandparent, child, grandchild, brother, sister, aunt, uncle, nephew or niece of the individual, or of the individual’s spouse or common-law partner, or

    • (ii) could have claimed for the year a deduction referred to in subparagraph (i) in respect of the qualifying individual if

      • (A) the qualifying individual had no income for the year,

      • (B) in the case of a deduction referred to in clause (i)(A), the individual were not married and not in a common-law partnership, and

      • (C) in the case of a deduction under subsection 118(1) because of paragraph (d) of the description of B in that subsection in respect of a qualifying individual who is a dependant (within the meaning of subsection 118(6)) of the individual, the qualifying individual was dependent on the individual because of mental or physical infirmity. (particulier admissible)

  individual

  individual does not include a trust. (particulier)

  qualifying expenditure

  qualifying expenditure of an individual means an outlay or expense that is made or incurred, during a taxation year, that is directly attributable to a qualifying renovation — of an eligible dwelling of a qualifying individual or an eligible individual in respect of a qualifying individual — and that is the cost of goods acquired or services received during the year and includes an outlay or expense for permits required for, or for the rental of equipment used in the course of, the qualifying renovation, but does not include an outlay or expense

  • (a) to acquire a property that can be used independently of the qualifying renovation;

  • (b) that is the cost of annual, recurring or routine repair or maintenance;

  • (c) to acquire a household appliance;

  • (d) to acquire an electronic home-entertainment device;

  • (e) that is the cost of housekeeping, security monitoring, gardening, outdoor maintenance or similar services;

  • (f) for financing costs in respect of the qualifying renovation;

  • (g) made or incurred primarily for the purpose of increasing or maintaining the value of the eligible dwelling;

  • (h) made or incurred for the purpose of gaining or producing income from a business or property;

  • (i) in respect of goods or services provided by a person not dealing at arm’s length with the qualifying individual or the eligible individual, unless the person is registered for the purposes of Part IX of the Excise Tax Act; or

  • (j) to the extent that the outlay or expense can reasonably be considered to have been reimbursed, otherwise than as assistance from the federal or a provincial government including a grant, subsidy, forgivable loan or a deduction from tax. (dépense admissible)

  qualifying individual

  qualifying individual, in respect of a taxation year, means an individual

  • (a) who has attained the age of 65 years before the end of the taxation year; or

  • (b) in respect of whom an amount is deductible, or would be deductible if this Act were read without reference to paragraph 118.3(1)(c), under section 118.3 in computing a taxpayer’s tax payable under this Part for the taxation year. (particulier déterminé)

  qualifying renovation

  qualifying renovation means a renovation or alteration of an eligible dwelling of a qualifying individual or an eligible individual in respect of a qualifying individual that

  • (a) is of an enduring nature and integral to the eligible dwelling; and

  • (b) is undertaken to

    • (i) enable the qualifying individual to gain access to, or to be mobile or functional within, the eligible dwelling, or

    • (ii) reduce the risk of harm to the qualifying individual within the eligible dwelling or in gaining access to the dwelling. (travaux de rénovation admissibles)

• Marginal note:Qualifying expenditure rules

  (2) For the purpose of this section,

  • (a) a qualifying expenditure in respect of an eligible dwelling of a particular individual — who is a qualifying individual or an eligible individual in respect of a qualifying individual — includes an outlay or expense made or incurred by a cooperative housing corporation, a condominium corporation (or, for civil law, a syndicate of co-owners) or a similar entity (in this paragraph referred to as the “corporation”), in respect of a property that is owned, administered or managed by that corporation and that includes the eligible dwelling, to the extent of the share of that outlay or expense that is reasonably attributable to the eligible dwelling, if

    • (i) the outlay or expense would be a qualifying expenditure of the corporation if the corporation were an individual and the property were an eligible dwelling of that individual, and

    • (ii) the corporation has notified, in writing, either the particular individual or, if the particular individual is an eligible individual in respect of a qualifying individual, the qualifying individual, of the share of the outlay or expense that is attributable to the eligible dwelling; and

  • (b) a qualifying expenditure in respect of an eligible dwelling of a particular individual — who is a qualifying individual or an eligible individual in respect of a qualifying individual — includes an outlay or expense made or incurred by a trust, in respect of a property owned by the trust that includes the eligible dwelling, to the extent of the share of that outlay or expense that is reasonably attributable to the eligible dwelling, having regard to the amount of the outlays or expenses made or incurred in respect of the eligible dwelling (including, for this purpose, common areas relevant to more than one eligible dwelling), if

    • (i) the outlay or expense would be a qualifying expenditure of the trust if the trust were an individual and the property were an eligible dwelling of that individual, and

    • (ii) the trust has notified, in writing, either the particular individual or, if the particular individual is an eligible individual in respect of a qualifying individual, the qualifying individual, of the share of the outlay or expense that is attributable to the eligible dwelling.

• Marginal note:Home accessibility tax credit

  (3) For the purpose of computing the tax payable under this Part by a qualifying individual or an eligible individual, in respect of an eligible dwelling for a taxation year, there may be deducted the amount determined by the formula

  A × B

  where

  A

  is the appropriate percentage for the taxation year; and

  B

  is the lesser of

  • (a) $20,000, and

  • (b) the total of all amounts, each of which is a qualifying expenditure of the individual in respect of the eligible dwelling for the taxation year.

• Marginal note:Interaction with medical expense credit

  (4) Despite paragraph 248(28)(b), an amount may be included in determining both an amount under subsection (3) and under section 118.2 if those amounts otherwise qualify to be included for the purposes of those provisions.

• Marginal note:Limits

  (5) For the purpose of this section,

  • (a) a maximum of $20,000 of qualifying expenditures for a taxation year in respect of a qualifying individual can be claimed under subsection (3) by the qualifying individual and all eligible individuals in respect of the qualifying individual;

  • (b) if there is more than one qualifying individual in respect of an eligible dwelling, a maximum of $20,000 of qualifying expenditures for a taxation year in respect of the eligible dwelling can be claimed under subsection (3) by the qualifying individuals and all eligible individuals in respect of the qualifying individuals; and

  • (c) if more than one individual is entitled to a deduction under subsection (3) for a taxation year in respect of the same qualifying individual or the same eligible dwelling and the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.

• Marginal note:Effect of bankruptcy

  (6) For the purpose of subsection (5), if an individual becomes bankrupt in a particular calendar year, despite subsection 128(2), any reference to the taxation year of the individual is deemed to be a reference to the particular calendar year.

• Marginal note:In the event of death and bankruptcy

  (7) For the purpose of this section,

  • (a) if an individual dies during a calendar year and would have attained 65 years of age if the individual were alive at the end of the year, the individual is deemed to have attained 65 years of age at the beginning of the year;

  • (b) if an individual becomes a qualifying individual during a calendar year and becomes bankrupt in that year, the individual is deemed to be a qualifying individual at the beginning of that year; and

  • (c) if an individual becomes a qualifying individual during a calendar year and an eligible individual in respect of the qualifying individual becomes bankrupt in that year, the individual is deemed to be a qualifying individual at the beginning of the year.