Macquarie Power & Infrastructure Income Fund Provides Tax Information for U.S. Unitholders
TORONTO, ONTARIO (March 31, 2009) – Macquarie Power & Infrastructure Income
Fund (TSX: MPT.UN; MPT.DB – “MPT” or the “Fund”), which owns and operates essential
infrastructure assets, today provided U.S. tax information to assist individual U.S. holders
of the Fund’s units.
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 trust units.
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” under the Jobs and Growth Tax Relief
Reconciliation Act of 2003 for U.S. federal income tax purposes. The Fund’s traded 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 made during 2008 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 earnings
and profits (“E&P”) as determined in accordance with U.S. income tax law.
With respect to cash distributions paid in 2008 to U.S. individual unitholders, 40.0% 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. Sixty percent of the cash distributions
paid in 2008 to U.S. individual unitholders should be reported as qualified dividends.
The Fund is not required to issue Form 1099 DIVs. However, U.S. unitholders may have
previously received a Form 1099 DIV from a broker or intermediary that may not be correct. As
a result of this, U.S. unitholders should consult their brokers and tax advisors to ensure that
this information is accurately reflected on their tax returns. Brokers and/or intermediaries may
or may not be required to issue amended Form 1099 DIVs.
Canadian resident taxpayers should note that the above information has no impact on
previously disclosed Canadian tax information.
Notice Pursuant to Internal Revenue Service Circular 230
Internal Revenue Service regulations generally provide that, for the purpose of avoiding
federal tax penalties, a taxpayer may rely only on formal written advice meeting specific
requirements. Any tax advice in this message does not meet those requirements. Accordingly,
any such tax advice was not intended or written to be used, and it cannot be used, for the
purpose of avoiding federal tax penalties that may be imposed on you or for the purpose of
promoting, marketing or recommending to another party any tax-related matters.
About the Fund
Macquarie Power & Infrastructure Income Fund invests in essential infrastructure assets in
North America with an emphasis on power infrastructure. MPT’s strategy is to acquire and
actively manage a diverse, high quality portfolio of infrastructure assets to improve their
financial performance and provide sustainable distributions to unitholders. MPT’s portfolio
includes investments in gas cogeneration, wind, hydro and biomass power generating
facilities, representing approximately 350 MW of installed capacity, and a 45% interest in
Leisureworld Senior Care LP, a leading provider of long-term care, or social infrastructure, in
Ontario. MPT is managed by a wholly-owned subsidiary of Macquarie Group Limited. Please
visit www.macquarie.com/mpt for additional information.
Certain statements in this news release may constitute “forward-looking” statements, which involve known and
unknown risks, uncertainties and other factors that may cause the actual results to be materially different from any
future results expressed or implied by such forward-looking statements. When used in the this news release, such
statements use such words as “may”, “will”, “expect”, “believe”, “plan” and other similar terminology. These statements
reflect current expectations regarding future events and operating performance and speak only as of the date of this
news release. 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 contained 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 2007 Annual Report under the headings “Outlook” on
pages 8 to 12, as updated in subsequently filed quarterly Financial Reports of the Fund. However, the Fund cannot
assure investors that actual results will be consistent with these forward-looking statements. These forward-looking
statements are made as of the date of this news release and the Fund does not undertake to update any forwardlooking
information that may be made from time to time by or on its behalf, except as required under applicable
securities legislation. The forward-looking information contained in this news release is presented for the purposes of
assisting investors and analysts in understanding the Fund’s financial position and our stated priorities and objectives
may not be appropriate for other purposes. The Fund cautions readers not to place undue reliance on any forwardlooking
statements, which speak only as of the date made. A number of factors could cause actual results to differ
materially from the results discussed in the forward-looking statements, including, but not limited to, risks associated
with: the operational performance of the Fund’s assets; power purchase agreements; fuel costs, supply and
transportation; default under credit agreements; regulatory regime and permits; land tenure and related rights;
government regulation and funding; the ability to complete future acquisitions; LTC home ownership and operation;
minority ownership interest in Leisureworld; reliance on key personnel; default under Leisureworld’s long-term debt
and credit facility; labour relations and cost; the variability of distributions; unitholder liability; dependence on
Macquarie Power Management Ltd., the manager of the Fund, and potential conflicts of interest; insurance; and risks
related to the environmental, health and safety regimes within which the Fund’s assets operate. The risks and
uncertainties described above are not exhaustive and other events and risk factors, including risk factors disclosed in
Fund’s filings with Canadian securities regulatory authorities, could cause actual results to differ materially from the
results discussed in the forward-looking statements.
For further information, please contact:
Vice President & Chief Financial Officer
Tel: (416) 607 5198
Vice President, Communications and Investor Relations
Tel: (416) 649 1325