As you said, I'll be providing the introductory remarks relating to part 1, the income tax amendments. My colleagues, Pierre and Gervais, will discuss part 2 and part 3 respectively.
To provide a brief overview of the measures, the first are some measures relating to veterans and veterans' benefits. They would ensure the non-taxability of the new caregiver recognition benefit, which replaces the previously non-taxable family caregiver relief benefit.
These amendments ensure that the new benefit has the same tax exempt character as the previous one. These substantive amendments are contained in the bill in division 12 of part 4. These are in the bill in clauses 2, 6, and 29.
Also, as a result of the tax expenditure review, it eliminates the investment tax credit for child care spaces. This is a 25% non-refundable tax credit for employers, with a maximum of up to $10,000 per eligible child care space created. This would be eliminated with regard to expenditures incurred after March 21, 2017. However, transitional relief is provided so that expenditures incurred under an agreement that was entered into before budget day would have until 2020 to conclude the work and obtain the credit. That can be found in clauses 3, 4, and 23 of the bill.
Next is the elimination of the deduction for eligible home relocation loans. Again, this is a part of the tax expenditure review. When an employee obtains a loan at below market interest rates, the difference between the market rate and what they pay is a taxable benefit. This deduction offsets that benefit for qualified employees up to a notional $25,000 loan.
Next is the elimination of the tax exemption for non-accountable allowances for members of legislative assemblies and certain municipal officers. To reiterate, that eliminates the non-accountable tax exemption for them. Of course, as with every employee, reimbursements that are accounted for would remain tax exempt. So if you have a taxi ride from an airport to the hotel on a business trip and you submit that and you get a reimbursement for it, that would, of course, be non-taxable. The non-taxability is being eliminated on the non-accountable allowances.
Next, again as part of the tax expenditure review, is the elimination of the tax exemption for insurers of farming and fishing property. This tax exemption is based on the premium income that qualifying insurance companies earn from insuring farming and fishing properties. That would be eliminated for the taxation years beginning after 2018—so, starting in 2019. That is in clauses 7, 24, and 33 of the bill.
Next is the elimination, again as part of the tax expenditure review, of the additional deduction available for corporations with regard to gifts of eligible medicines to a qualifying donee charity. This deduction is available in addition to the existing charitable tax credit or charitable deduction that's available with regard to gifts of medicine, which would apply to the fair market value of the medicine donated. That is in clauses 9, 25, and 32 of the bill.
Next is a simplification measure, again, in the context of the tax expenditure review. It replaces the existing caregiver credit, infirm dependant credit, and family caregiver tax credit with a new Canada caregiver credit. It's available for the 2017 and subsequent taxation years, and it can be found in clauses 11, 12, and 14 of the bill.
Next, as part of the tax expenditure review, is the elimination of the transit pass tax credit. It would eliminate the tax credit for public transit use, with regard to transit use after June, 2017—so, starting July 1, 2017. That is in clauses 13 and 23 of the bill.
Next is an amendment to the medical expense tax credit. It ensures that certain costs relating to the use of reproductive technologies to conceive a child are eligible for the medical expense tax credit, even though the underlying cause for the treatment is not related to an underlying medical condition. An example of that would be for same-sex couples needing this treatment to conceive a child. That can be found in clause 15 of the bill.
The next amendment relates to the disability tax credit. In order to qualify for the disability tax credit, a disability must be certified by a qualifying professional—for instance, doctors or certain enumerated specialists. This would extend the list of medical practitioners who can certify eligibility for the tax credit to include nurse practitioners, who, for many Canadians, are a significant point of contact in the health care system. That can be found in clauses 16 and 17 of the bill.
Next we have amendments to the tuition tax credit. These fill a gap in the currently existing tuition tax credit rules as they relate to fees paid for skills training courses. Currently, post-secondary courses taken out of post-secondary education are eligible for the tax credit. Job skills courses taken out of a qualifying educational institution, second-language skills, and things like that are also eligible for the tuition tax credit, but if you take one of those job skills courses at a post-secondary educational institution, like a university, there is a gap in the rules and you couldn't get a credit, even though one would expect it to be available. This amendment would fill that hole for the 2017 and subsequent taxation year. Those can be found in clauses 18 and 19 of the bill.
The next measure would extend for one year the mineral exploration tax credit in respect of certain grassroots mineral explorations. This extends the credit to be available in respect of so-called flow through share agreements entered into on or before March 31, 2018. This would support exploration for these qualifying minerals to the end of 2019. That is in clause 23 of the bill.
Next is the elimination of the tobacco manufacturers' surtax. This amendment to the Income Tax Act would eliminate the surtax that applies to Canadian producers. It's made in conjunction with amendments to the excise duty rates in part 3 of the bill, which are intended to maintain the intended tax burden on tobacco products.
Next are amendments permitting employers to distribute T4 slips to their employees without first having to obtain consent from the employee. That sets a new default for the distribution of T4s, subject to some important safeguards. First of all, appropriate privacy safeguards have to be in place. Second, it must be reasonable to expect that the employee would be able to have access to these T4 slips, and third, if the employees say they want paper slips they have to get paper slips. That is in clauses 28 and 31 of the bill.
Lastly is extension for one year of the repeal of the national child benefit supplement. That is found in the calculation of the Canada child benefit, even though it does not affect the calculation of the Canada child benefit. A number of provincial programs refer to the former national child benefit supplement for their calculation, and specifically to the variable in the Canada child benefit that contains the NCBS, so it was left in and scheduled to be repealed effective July 1, 2017. This repeal is being moved back to July 1, 2018 to give provinces additional time to update their rules.
That's the end of part 1.