Innergex Power Income Fund: 2007 Canadian Tax Information



    LONGUEUIL, QC, March 26 /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 2007 federal, and if
necessary provincial, income tax return.
    For Canadian tax purposes, approximately 32% of the cash distributions
for 2007 ($0.31188 per unit) is considered taxable income from a trust, while
3% (0.02592 per unit) is taxable as dividends, other than eligible dividends
from a taxable Canadian corporation. The remaining amount, approximately 65%
or $0.62724 per unit, is considered a return of capital and is therefore
non-taxable. This last amount, as return on capital, must be applied to reduce
the adjusted cost base of the units when the units are sold.

    Trust units held within a tax-deferred plan (ex.: Registered Retirement
    -----------------------------------------------------------------------
    Savings Plan ("RRSP"), Registered Retirement Income Fund ("RRIF"), etc.)
    ------------------------------------------------------------------------

    When the Fund's units are held, for example, within a RRSP, a RRIF or any
other tax-deferred plan, no amount should be reported in the income of the
unitholder for his 2007 taxation year.

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

    Unitholders who hold their trust units outside a RRSP, a RRIF or any
other tax-deferred plan, have to present 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 2007
taxation year. According to the Canada Revenue Agency and provincial tax
authorities, the deadline to mail the prescribed slips to unitholders is March
31, 2008.
    The attached schedule summarizes the information on the taxable portion
of the 2007 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 2007 income tax return.

    Adjusted Cost Base ("ACB") for the determination of capital gains or
    --------------------------------------------------------------------
    losses
    ------

    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 and in box M of "Relevé 16"
slip for Quebec. 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
                            2007 - T3 Information
    -------------------------------------------------------------------------
                                                Amount per unit
    -------------------------------------------------------------------------
                                                    Taxable              Non-
                                                                     taxable
    -------------------------------------------------------------------------
                                                          Non
                                                          eligible
                                                          dividend
                                                          of a
                                   Total                  Canadian    Return
    For the                        Distri-     Income     Corporation     of
    period    Record    Payment    bution      from a     (before    Capital
    ended     date      date       Paid        trust      gross up)  Portion
    -------------------------------------------------------------------------
    January   January   February
    31, 2007  31, 2007  23, 2007   0,080417$   0,02599$   0,00216$   0,05227$
    -------------------------------------------------------------------------
    February  February  March
    28, 2007  28, 2007  23, 2007   0,080417$   0,02599$   0,00216$   0,05227$
    -------------------------------------------------------------------------
    March     March     April
    31, 2007  30, 2007  25, 2007   0,080417$   0,02599$   0,00216$   0,05227$
    -------------------------------------------------------------------------
    April,    April     May
    30 2007   30, 2007  25, 2007   0,080417$   0,02599$   0,00216$   0,05227$
    -------------------------------------------------------------------------
    May       May       June
    31, 2007  31, 2007  22, 2007   0,080417$   0,02599$   0,00216$   0,05227$
    -------------------------------------------------------------------------
    June      June      July
    30, 2007  29, 2007  25, 2007   0,080417$   0,02599$   0,00216$   0,05227$
    -------------------------------------------------------------------------
    July      July      August
    31, 2007  31, 2007  24, 2007   0,080417$   0,02599$   0,00216$   0,05227$
    -------------------------------------------------------------------------
    August    August    September
    31, 2007  31, 2007  25, 2007   0,080417$   0,02599$   0,00216$   0,05227$
    -------------------------------------------------------------------------
    September September October
    30, 2007  28, 2007  25, 2007   0,080417$   0,02599$   0,00216$   0,05227$
    -------------------------------------------------------------------------
    October   October   November
    31, 2007  31, 2007  23, 2007   0,080417$   0,02599$   0,00216$   0,05227$
    -------------------------------------------------------------------------
    November  November  December
    30, 2007  30, 2007  21, 2007   0,080417$   0,02599$   0,00216$   0,05227$
    -------------------------------------------------------------------------
    December  December  January
    31, 2007  31, 2007  25, 2008   0,080417$   0,02599$   0,00216$   0,05227$
    -------------------------------------------------------------------------
    TOTAL                            0,9650$   0,31188$   0,02592$   0,62724$
    -------------------------------------------------------------------------
    

    Innergex Power Income Fund is an open-ended income trust that indirectly
owns interests in ten hydroelectric power generating facilities and two wind
farms with a total installed capacity of 339.9 MW (net interest of 197 MW).
The Fund's units are traded on the Toronto Stock Exchange under the symbol
IEF.UN. The hydroelectric facilities and the wind farms are managed by
Innergex Renewable Energy Inc., the Manager, 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 Renewable Energy Inc., as Manager, (450)
928-2550, ext. 252, info@innergex.com, www.innergex.com

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INNERGEX POWER INCOME FUND

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