– Macquarie Power & Infrastructure Income Fund
(TSX: MPT.UN; MPT.DB.A – “MPT” or the “Fund”) today provided U.S. tax information for
2009 intended to assist individual U.S. holders (“Unitholders”) of the Fund’s trust units
(“Units”). The Fund also provided revised tax information for 2008 and 2007, reflecting
certain corrections to the Fund’s previous earnings and profit (“E&P”) estimates for U.S.
The Fund believes that it should be considered a qualified foreign corporation for U.S. tax
purposes and that dividends (as computed under U.S. tax principles) paid to its individual U.S.
Unitholders should be considered “qualified dividends” (assuming other investor requirements
are met) under the Jobs and Growth Tax Relief Reconciliation Act of 2003 for U.S. federal
income tax purposes. The Fund’s Units more likely than not are properly classified as equity in
a corporation, rather than as debt, for U.S. federal income tax purposes. As such, the portion
of the distributions that are considered qualified dividends should be eligible for the reduced
rate of tax applicable to certain long-term capital gains. The portion of the Fund’s distributions
that is considered a dividend for U.S. income tax purposes is determined based upon the
greater of the Fund’s current or accumulated E&P as determined in accordance with U.S.
income tax law.
The Fund provides information in relation to its E&P position for U.S. tax purposes on a
voluntary basis. This information is prepared by an external tax advisor on behalf of the
Fund. Neither the United States Congress, nor the Treasury, nor the judiciary has provided a
comprehensive definition of E&P although section 312 of the Internal Revenue Code, and the
regulations thereunder, address certain aspects of its computation. Taxpayers seeking to
compute E&P must therefore rely on inferences based on the function of E&P and its
underlying theory, rather than on explicit tax authority. Accordingly, this information is general
in nature and is not exhaustive of all possible U.S. tax considerations. It is not intended to
constitute legal or tax advice to any holder or potential holder of the Fund’s Units. It is strongly
recommended that U.S. Unitholders consult with their financial or tax advisors as to the tax
consequences of holding Units and concerning the tax consequences of this information that is
specific to their own circumstances, including any state, local or foreign tax considerations.
Canadian resident taxpayers should note that the information provided below has no impact on
previously disclosed Canadian tax information.
Tax Information for 2009
With respect to cash distributions paid in 2009 to U.S. Unitholders, 68% should be reported as
either non-taxable return of capital or capital gain for U.S. federal income tax purposes. This
portion of the cash distribution should be a non-taxable return of capital to the extent of the
Unitholder’s U.S. tax basis in the units and taxable as a capital gain where it is in excess of the
Unitholder’s U.S. tax basis in the units. Thirty-two percent of the cash distributions paid in
2009 to U.S. Unitholders should be reported as qualified dividends.
Macquarie Power & Infrastructure Income Fund is not an authorised deposit taking institution for the purposes of the Banking
Act (Cth) 1959 and Macquarie Power & Infrastructure Income Fund’s obligations do not represent deposits or other liabilities
of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of
the obligations of Macquarie Power & Infrastructure Income Fund.
Revised Tax Information for 2008 and 2007
The Fund also provided revised tax information for 2008 and 2007, reflecting certain
corrections to the Fund’s previous E&P estimates following identification of an error on the part
of the Fund’s external tax advisor in 2008 and 2007.
For 2008, 34% of distributions received by U.S. Unitholders should be treated as qualified
foreign dividends and 66% should be treated as a return of capital. The tax information
previously provided for 2008 indicated that 60% of distributions received by U.S. Unitholders
should be treated as qualified foreign dividends and that 40% should be treated as a return of
For 2007, 46% of cash distributions to U.S. Unitholders should be treated as qualified foreign
dividends and 54% should be treated as a return of capital. The tax information previously
provided for 2007 indicated that 70.2% of distributions received by U.S. Unitholders should be
treated as qualified foreign dividends and that 29.8% should be treated as a return of capital.
Notice Pursuant to Internal Revenue Service Circular 230
Pursuant to U.S. Treasury Department Circular 230, unless expressly stated otherwise, any
tax advice contained in this news release is not intended or written to be used, and cannot be
used, for the purpose of (i) avoiding tax-related penalties; or (ii) promoting, marketing or
recommending to another party any matter(s) addressed herein.
About Macquarie Power & Infrastructure Income Fund
Macquarie Power & Infrastructure Income Fund’s mandate is to invest in core infrastructure
businesses in Canada and internationally. MPT aims to acquire and actively manage a high
quality portfolio of long-life infrastructure businesses that will generate sustainable, long-term
distributions and an attractive total return for investors. MPT’s portfolio currently includes
investments in gas cogeneration, wind, hydro and biomass power generating facilities,
representing approximately 350 MW of installed capacity. MPT is also currently developing a
20 MW solar power facility in Ontario. MPT is managed by an affiliate of Macquarie Group
Limited. Please visit www.macquarie.com/mpt for additional information.
Certain of the statements contained in this news release are forward-looking and reflect management’s expectations
regarding the Fund’s future growth, results of operations, performance and business based on information currently
available to the Fund. Forward-looking statements are provided for the purpose of presenting information about
management’s current expectations and plans relating to the future and readers are cautioned that such statements
may not be appropriate for other purposes. These statements use forward-looking words, such as “anticipate”,
“continue”, “could”, “expect”, “may”, “will”, “estimate”, “believe” or other similar words. These statements involve known
and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from
those expressed or implied by such forward-looking statements. Forward-looking statements involve significant risks
and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be
accurate indications of whether or not such results will be achieved. The forward-looking statements in this news
release are based on information currently available and what the Fund currently believes are reasonable
assumptions, including the material assumptions for each of the Fund’s assets set out in the Fund’s annual, quarterly
and other filings with the Canadian Securities Administrators’ System for Electronic Document Analysis and Review
(SEDAR) at www.sedar.com. Other material factors or assumptions that were applied in formulating the forwardlooking
statements contained herein include the assumption that the business and economic conditions affecting the
Fund’s operations will continue substantially in their current state, including, with respect to industry conditions,
general levels of economic activity, regulations, weather, taxes and interest rates and that there will be no unplanned
material changes to the Fund’s facilities, equipment and contractual arrangements.
Although the Fund believes that it has a reasonable basis for the expectations reflected in these forward-looking
statements, actual results may differ from those suggested by the forward-looking statements for various reasons,
including risks related to: operational performance; power purchase agreements; fuel costs and supply; contract
performance; default under credit agreements; land tenure and related rights; regulatory regime and permits; force
majeure; changes in federal tax rules for flow-through entities; other tax-related risks; variability of distributions;
geographical concentration and non-diversification; dependence on the manager and potential conflicts of interest; insurance; environmental, health and safety regime; availability of financing; unitholder dilution; volatile market price
for units; international financial reporting standards; nature of units; and unitholder liability. The assumptions, risks and
uncertainties described above are not exhaustive and other events and risk factors could cause actual results to differ
materially from the results and events discussed in the forward-looking statements. These forward-looking statements
reflect current expectations of the Fund as at the date of this news release and speak only as at the date of this news
release. The Fund does not undertake any obligation to publicly update or revise any forward-looking statements
except as may be required by applicable law.