Bill S-203 explained in plain English
An Act to amend the Business Development Bank of Canada Act (municipal infrastructure bonds) and to make a consequential amendment to another Act
Federal Parliament bill summary, status, timeline, sponsor, votes, and official sources.
At a glance
Official Parliament of Canada snapshot for 40th Parliament, 2nd Session. MP vote breakdowns appear when the House of Commons publishes a recorded division export for that bill. Senate and House stage details include official debate/sitting links when LEGISinfo publishes them.
Our plain-language take, written for civic education.
Source: By PoliticalData.ca
This bill proposes to amend the Business Development Bank of Canada Act to allow municipalities to seek income tax exemptions for bonds financing infrastructure projects, and makes related changes to the Access to Information Act.
This bill, titled the An Act to amend the Business Development Bank of Canada Act (municipal infrastructure bonds), proposes changes to the Business Development Bank of Canada Act. It aims to allow municipalities to apply for income tax exemptions on bonds issued to finance infrastructure projects. The bill also changes the short title of the Act and makes consequential amendments to the Access to Information Act. The Governor in Council will determine when these provisions come into effect.
- Amends the Business Development Bank of Canada Act to add a new purpose for the Bank: to process applications for income tax exemptions for municipal bonds used to finance infrastructure projects.
- Establishes a process for municipalities to apply for income tax exemptions for bonds intended to finance infrastructure projects.
- Specifies that provincial approval is required for a municipality to apply for such an exemption.
- Outlines the conditions under which the Business Development Bank of Canada shall grant an income tax exemption, including that the bond proceeds must be used for an infrastructure project and any other requirements prescribed by regulation.
- Requires the Business Development Bank of Canada to publish notices of granted exemptions in the Canada Gazette.
- States that interest paid on bonds with an income tax exemption granted under this Act will be exempt from income tax under the Income Tax Act.
- Allows the Governor in Council to make regulations to define what qualifies as an infrastructure project and to prescribe other requirements for these exemptions.
- Amends Schedule II to the Access to Information Act by removing a reference to the Business Development Bank of Canada Act and adding a reference to the new short title of the Act (Municipal Modernization and Business Development Bank of Canada Act).
- Changes the short title of the Business Development Bank of Canada Act to the "Municipal Modernization and Business Development Bank of Canada Act."
- Municipalities in Canada
- The Business Development Bank of Canada
- The Government of Canada (through the Governor in Council and regulations)
- Providers of provincial approval for municipal applications
- Holders of municipal infrastructure bonds that receive an income tax exemption
- Municipalities have the right to apply for income tax exemptions for bonds financing infrastructure projects, provided they have provincial approval.
- The Business Development Bank of Canada has the duty to grant an exemption if satisfied that the proceeds are for an infrastructure project and other regulatory requirements are met.
- The Business Development Bank of Canada has the duty to publish notices of granted exemptions.
- Interest paid on qualifying bonds is exempt from income tax under the Income Tax Act.
- The provisions of this Act come into force on a day to be fixed by order of the Governor in Council.
- Provides for income tax exemptions for interest paid on municipal bonds used to finance infrastructure projects.
- The specific criteria for what qualifies as an 'infrastructure project' will be defined by regulations made by the Governor in Council.
- The 'other requirements prescribed by the regulations' for granting an exemption are not detailed in the bill and will be set out in regulations.
- The process and criteria for 'provincial approval' will depend on the legislation of each province.
Modifies the Act to include a new purpose for the Bank related to municipal infrastructure bonds and income tax exemptions, and changes the Act's short title.
Source: Sections 1, 2, and 3
Updates Schedule II by removing a reference to the old title of the Business Development Bank of Canada Act and adding a reference to its new short title.
Source: Sections 4 and 5
Interest paid on bonds that receive an income tax exemption under the proposed changes will be exempt from income tax under this Act.
Source: Section 33.1(6)
Generated using AI from official bill text. Not legal advice. It is written by PoliticalData.ca for civic education, automatically checked and spot-reviewed before publishing.
Official textParliamentary Process
We don't have a plain-language summary for First reading yet. The official source linked below is the full record.
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We don't have a plain-language summary for Second reading yet. The official source linked below is the full record.
We don't have a plain-language summary for Debate at second reading yet. The official source linked below is the full record.
We don't have a plain-language summary for Sponsor’s speech yet. The official source linked below is the full record.
We don't have a plain-language summary for Debate at second reading yet. The official source linked below is the full record.
We don't have a plain-language summary for Debate at second reading yet. The official source linked below is the full record.
We don't have a plain-language summary for Second reading yet. The official source linked below is the full record.
We don't have a plain-language summary for Response speech yet. The official source linked below is the full record.
We don't have a plain-language summary for Consideration in committee yet. The official source linked below is the full record.
We don't have a plain-language summary for Report stage yet. The official source linked below is the full record.
We don't have a plain-language summary for Third reading yet. The official source linked below is the full record.
We don't have a plain-language summary for First reading yet. The official source linked below is the full record.
We don't have a plain-language summary for Second reading yet. The official source linked below is the full record.
We don't have a plain-language summary for Consideration in committee yet. The official source linked below is the full record.
We don't have a plain-language summary for Report stage yet. The official source linked below is the full record.
We don't have a plain-language summary for Third reading yet. The official source linked below is the full record.
Debate and sitting links point to official parliamentary sources when LEGISinfo publishes them. Any plain-language discussion summaries should be generated from those official texts and reviewed before public display.
Vote Summary
This bill is still active. We only show vote counts after the legislature publishes a recorded division.
No published representative vote breakdown
This bill is still moving through the process. When a recorded division is published, representative positions can be listed here.
Official sources
Status, sponsor, votes, and timeline on this page are drawn from these official legislative sources and public records. Each summary above is attributed to its own source.
How this data is sourced