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Ch3 (GRANT PROGRAMS) (Canada Learning Bond (available to families who…

- - - - Annual RESP contributions of up to $2,500 ($2,000 for 1998 to 2007) per beneficiary qualify for the CESG.
        The beneficiary must be a Canadian resident with a Canadian Social Insurance Number at the time of the contributions.
        The CESG must be applied for within three years of the date of deposit.
        Qualifying contributions can be made up to December 31 stof the year in which the student turns 17.
    - - The CESG is only available if a minimum of $2,000 of RESP contributions were made before the year in which the beneficiary turned 16, or a minimum of $100 of annual RESP contributions were made and not withdrawn in at least any four years before the year the beneficiary turned 16.
    - - The CESG program pays an additional 20% of the subscriber’s qualifying contribution to the RESP for the beneficiary to a maximum of $7,200 per beneficiary.
        CESG amounts are not included in the calculation of the lifetime limits of the RESP.
    - - Even if a subscriber does not make an RESP contribution in a given year, the beneficiary still accumulates $2,500 of CESG eligible contribution room for that year ($2,000 contribution room per year prior to 2007). Unused contribution room can be carried forward to produce a maximum annual grant of up to $1,000 per student, in any given year
    - - the CESG amounts are included in those EAPs
    - - CESGs and income earned on CESGs can be shared with other beneficiaries in a Family Plan as long as no beneficiary receives more than $7,200 in CESGs.
    - - The CESG (but not the interest earned on it) must be repaid to the Federal Government if the beneficiary of an RESP does not pursue qualifying post-secondary education.
        
        a CESG repayment equal to 20% of the withdrawal
        
        Repayment of the CESG is also required if:
        • » The RESP is terminated,
        • » Its registration is revoked,
        • » An AIP is made to the subscriber, or
        • » There is an ineligible transfer from one RESP to another.
  - - - must be made by the child’s primary caregiver (custodial parent) or their spouse/common law partner. Without this application, the CESG rate for all deposits will be at the regular 20% rate.
      - Unlike basic CESG amounts, there is no carry-forward of the Additional CESG
      - The maximum CESG (basic and additional) available remains capped at $7,200 per beneficiary. As with the CESG, the ACESG must be applied for within three years of the date of a qualifying contribution.
- - - - An initial grant of $500 is available for babies born to or adopted by Alberta residents on or after January 1, 2005.
      - The application for the initial ACES grant must be completed within six years of the child’s birth date
      - Additional ACES grants of $100 each are available to students who are enrolled in school in Alberta and who have turned 8, 11 or 14 years old in 2005 or later
      - Children who are home-schooled at the primary level may also be eligible to receive the $100 ACES grants.
      - ACES grant payments can be withdrawn in the form of EAPs
      - If the ACES grant is not withdrawn through an EAP, the funds must be repaid to the Government of Alberta.
  - - - • The child must be born on or after January 1, 2007
        • The child must have an RESP before they turn seven
        
        must be resident of BC
        
        must be enrolled in an education program
        • Parents/ contributors will have a full year, between the child’s 6th and 7th birthdays, to apply for the grant. Families of BC resident children born in 2007 will have until February 28, 2014, to establish an RESP).
  - - - The QESI will add 10% of the net contributions paid into each beneficiary’s RESP to maximum of $250 per year and $3,600 lifetime. As a further incentive for moderate income families, an increase of up to $50 per year, calculated on the basis of family income, may be added to the basic amount. The basic QESI entitlement accrues annually from 2007 or the child’s year of birth, whichever is later, until the year the child turns 17. Unused QESI entitlement can be carried forward, though the maximum annual amount of QESI is $500.