Innergex Power Income Fund: 2006 Canadian Tax Information



    LONGUEUIL, QC, March 13 /CNW Telbec/ - The following information is
intended to assist individual Canadian unitholders of Innergex Power Income
Fund (IEF.UN) (the "Fund") in the completion of their 2006 federal, and if
necessary provincial, income tax return.
    From the sums distributed during 2006, approximately 65% are non-taxable
as a return of capital and 35% as a taxable income from a trust.

    Trust units held within a tax-deferred plan (ex.: Registered Retirement
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    Savings Plan ("RRSP"), Registered Retirement Income Fund ("RRIF"), etc.)
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    When the Fund's units are held, for example, within a RRSP or a RRIF, or
any other tax-deferred plan, no amount should be reported in the income of the
unitholder for his 2006 taxation year.

    Trust units held outside of a tax-deferred plan
    -----------------------------------------------

    Unitholders who hold their trust units outside a RRSP or RRIF, or any
other tax-deferred plan, have to declare in their income the sums declared by
the Fund. To that end, unitholders will receive directly from their broker a
"T3 Supplementary" slip, and a "Relevé 16" slip for Quebec, for their 2006
taxation year. According to the Canada Revenue Agency and provincial tax
authorities, the deadline to mail the prescribed slips to unitholders is March
 31, 2007.
    The attached schedule summarizes the information on the taxable portion
of the 2006 cash distributions declared on a per unit basis by the Fund. Under
the Income Tax Act, and other provincial tax acts relevant under these
circumstances, taxable amounts allocated to the unitholders must be reported
by the unitholders on their federal and provincial 2006 income tax return.

    Adjusted Cost Base ("ACB") for the determination of capital gains or
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    losses
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    The ACB of a property usually represents the acquisition cost of the
property, plus the expenses to acquire the property and some adjustments.
Unitholders are notably required to reduce the ACB of their trust units by the
amount of return of capital that is paid to them by the Fund. This amount is
presented in box 42 of the "T3 supplementary" slip. For any other adjustments
to the Fund units' ACB, we recommend that unitholders ask their tax advisors.
The determination of the ACB is used in the determination of capital gains or
losses on the disposition of the whole or a part of the trust units if the
units are held as a capital property by the holder.

    
                                 Schedule 1
                         Innergex Power Income Fund
                            2006 - T3 Information

    -------------------------------------------------------------------------
                                                      Amount per Unit
                                              -------------------------------
                                                                         Non-
                                                           Taxable   taxable
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                                                   Total              Return
                                                  Distri-   Income        of
    For the period      Record       Payment      bution    from a   Capital
     ended                date          date        Paid     trust   Portion
    -------------------------------------------------------------------------
    January 31,    January  31,  February 24,
     2006                 2006          2006  $ 0.080417 $ 0.02815 $ 0.05227
    -------------------------------------------------------------------------
    February 28,   February 28,     March 24,
     2006                 2006          2006  $ 0.080417 $ 0.02815 $ 0.05227
    -------------------------------------------------------------------------
    March 31,         March 31,     April 25,
     2006                 2006          2006  $ 0.080417 $ 0.02815 $ 0.05227
    -------------------------------------------------------------------------
    April, 30         April 28,       May 25,
     2006                 2006          2006  $ 0.080417 $ 0.02815 $ 0.05227
    -------------------------------------------------------------------------
    May 31,            May, 31       June 22,
     2006                 2006          2006  $ 0.080417 $ 0.02815 $ 0.05227
    -------------------------------------------------------------------------
    June 30,           June 30,      July 25,
     2006                 2006          2006  $ 0.080417 $ 0.02815 $ 0.05227
    -------------------------------------------------------------------------
    July, 31           July 31,    August 25,
     2006                 2006          2006  $ 0.080417 $ 0.02815 $ 0.05227
    -------------------------------------------------------------------------
    August 31,       August 31, September 25,
     2006                 2006          2006  $ 0.080417 $ 0.02815 $ 0.05227
    -------------------------------------------------------------------------
    September 30, September 29,   October 25,
     2006                 2006          2006  $ 0.080417 $ 0.02815 $ 0.05227
    -------------------------------------------------------------------------
    October 31,     October 31,  November 24,
     2006                 2006          2006  $ 0.080417 $ 0.02815 $ 0.05227
    -------------------------------------------------------------------------
    November 30,   November 30,  December 22,
     2006                 2006          2006  $ 0.080417 $ 0.02815 $ 0.05227
    -------------------------------------------------------------------------
    December 31,   December 29,   January 25,
     2006                 2006          2007  $ 0.080417 $ 0.02815 $ 0.05227
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                         TOTAL                $   0.9650 $ 0.33780 $ 0.62724
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    Innergex Power Income Fund is an open-ended income trust that indirectly
owns ten hydroelectric power generating facilities with a total installed
capacity of 129.9 MW. The facilities are operated and managed by Innergex
Management Inc. under long-term agreements with the Fund

    FORWARD-LOOKING STATEMENTS

    Investors should take note that certain statements in this press release
are forward-looking and may not give full weight to all of the potential risks
and uncertainties. Forward-looking statements are subject by their nature to
risks and uncertainties, and actual results, actions or events could differ
materially from those set forth in the forward-looking statements. Any
forward-looking statements speak only as of the date made. The Fund is not
undertaking to update any forward-looking statements.
    %SEDAR: 00018706EF




For further information:

For further information: Mr Jean Trudel, Vice President, Finance and
Investor Relations, Innergex Management Inc., (450) 928-2550, ext. 252,
info@innergex.com, www.innergex.com

Organization Profile

INNERGEX POWER INCOME FUND

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