Section 118.61 — Income Tax Act: Unused tuition, textbook and education tax credits

In this section, an individual’s unused tuition, textbook and education tax credits at the end of a taxation year is the amount determined by the formula A + (B - C) - (D + E) where A is the amount determined under this subsection in respect of the individual at the end of the preceding taxation year; B is the total of all amounts each of which may be deducted under section 118.5 in computing the individual’s tax payable under this Part for the year; C is the lesser of the value of B and the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under this section and any of subsections 118(1) to (10) and sections 118.01 to 118.07, 118.3 and 118.7); D is the amount that the individual may deduct under subsection (2) for the year; and E is the tuition tax credit transferred for the year by the individual to the individual’s spouse, common-law partner, parent or grandparent. For the purpose of computing an individual’s tax payable under this Part for a taxation year, there may be deducted the lesser of the amount determined under subsection (1) in respect of the individual at the end of the preceding taxation year, and the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under this section and any of subsections 118(1) to (10) and sections 118.01 to 118.07, 118.3 and 118.7). [Repealed, 2007, c. 2, s. 24] For the purpose of determining the amount that may be deducted under subsection (2) in computing an individual’s tax payable for a taxation year, in circumstances where the appropriate percentage for the taxation year is different from the appropriate percentage for the preceding taxation year, the individual’s unused tuition, textbook and education tax credits at the end of the preceding taxation year is deemed to be the amount determined by the formula A/B × C where A is the appropriate percentage for the current taxation year; B is the appropriate percentage for the preceding taxation year; and C is the amount that would be the individual’s unused tuition, textbook and education tax credits at the end of the preceding taxation year if this section were read without reference to this subsection.