Ontario School Bus Safety Tax Incentive

Expired

Notice to the reader: The Ontario School Bus Safety Tax Incentive ceased to be in effect as of January 1, 2006. This incentive is not available for school buses acquired after December 31, 2005.

The Ontario School Bus Safety Tax Incentive (OSBSTI) is a 30 per cent deduction of the capital cost of acquiring a new school bus. The school bus must be included in class 10 of Schedule II of the regulations for purposes of the Income Tax Act (Canada), and acquired after May 4, 1999 and before January 1, 2006.

The Benefit

The OSBSTI is a once-only 30 per cent deduction of the cost of acquiring an eligible school bus and is in addition to the deduction available for income tax purposes with respect to the capital cost allowance.

Eligibility

The school bus must meet the revised 1998 standards set by the Canadian Standards Association and be used primarily to transport students to and from school in Ontario. It must be acquired after May 4, 1999 and before January 1, 2006.

How to Apply

The OSBSTI is a deduction in calculating Ontario taxable income. The amount of the OSBSTI is claimed on Line 671 of the tax return.

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