Innergex Power Income Fund 2009 Canadian tax information

LONGUEUIL, QC, March 3 /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 2009 federal, and if necessary, provincial income tax return.

Of the cash distributions for 2009, approximately 56% ($0.55990 per unit) is considered a return on capital and is therefore not taxable immediately in current income; 41% ($0.40976 per unit) is considered taxable income from a trust; and 3% ($0.03034 per unit) is a taxable as dividend, other than eligible dividends from a taxable Canadian corporation. The return on capital amount 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 unitholders for his 2009 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 include in their income the sums declared by the Fund. To that end, unitholders will receive directly from their broker a "T3 Supplementary" form, and a "Relevé 16" form for Quebec, for their 2009 taxation year. According to the Canada Revenue Agency and provincial tax authorities, the deadline to mail the prescribed slips to unitholders is March 31, 2010.

The attached schedule summarizes the information on the taxable portion of the 2009 cash distributions declared on a per unit basis by the Fund. Under the Income Tax Act, and other provincial relevant tax acts, taxable amounts allocated to the unitholders must be reported by the unitholders on their federal and provincial 2009 income tax returns.

    
    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 adjustment 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.

    
                         Innergex Power Income Fund
                           2009 - Tax Information

    -------------------------------------------------------------------------
                                                       Amount per unit
                                   ------------------------------------------
                                                   Taxable          Non-
                                                                    taxable
    -------------------------------------------------------------------------
    For the    Record     Payment    Total     Income     Dividend  Return
    period     date       date       Distri-   from a     other     on
    ended                            bution    trust      than an   Capital
                                     Paid                 eligible  Portion
                                                          dividend
                                                          paid out
                                                          by a
                                                          Canadian
                                                          corpo-
                                                          ration
                                                          (prior to
                                                          gross-up)
    -------------------------------------------------------------------------
    January    January    February   $0.08330  $0.03413   $0.00252   $0.04665
    31, 2009   30, 2009   25, 2009
    -------------------------------------------------------------------------
    February   February   March      $0.08330  $0.03413   $0.00252   $0.04665
    28, 2009   27, 2009   25, 2009
    -------------------------------------------------------------------------
    March      March      April      $0.08334  $0.03415   $0.00253   $0.04666
    31, 2009   31, 2009   25, 2009
    -------------------------------------------------------------------------
    April      April      May        $0.08334  $0.03415   $0.00253   $0.04666
    30, 2009   30, 2009   25, 2009
    -------------------------------------------------------------------------
    May        May        June       $0.08334  $0.03415   $0.00253   $0.04666
    31, 2009   29, 2009   22, 2009
    -------------------------------------------------------------------------
    June       June       July       $0.08334  $0.03415   $0.00253   $0.04666
    30, 2009   30, 2009   24, 2009
    -------------------------------------------------------------------------
    July       July       August     $0.08334  $0.03415   $0.00253   $0.04666
    31, 2009   31, 2009   25, 2009
    -------------------------------------------------------------------------
    August     August     September  $0.08334  $0.03415   $0.00253   $0.04666
    31, 2009   31, 2009   25, 2009
    -------------------------------------------------------------------------
    September  September  October    $0.08334  $0.03415   $0.00253   $0.04666
    30, 2009   30, 2009   23, 2009
    -------------------------------------------------------------------------
    October    October    November   $0.08334  $0.03415   $0.00253   $0.04666
    31, 2009   30, 2009   25, 2009
    -------------------------------------------------------------------------
    November   November   December   $0.08334  $0.03415   $0.00253   $0.04666
    30, 2009   30, 2009   18, 2009
    -------------------------------------------------------------------------
    December   December   January    $0.08334  $0.03415   $0.00253   $0.04666
    31, 2009   31, 2009   25, 2010
    -------------------------------------------------------------------------
                   TOTAL             $1.00000  $0.40976   $0.03034   $0.55990
    -------------------------------------------------------------------------
    

Innergex Power Income Fund is an open-ended income trust that indirectly owns interests in 10 hydroelectric power-generating facilities and two wind farms. The Fund's installed capacity is 340 MW (net interest of 210 MW). Approximately 27% of total annual production comes from wind energy. The Fund's units are traded on the Toronto Stock Exchange under the symbol IEF.UN. The hydroelectric facilities and wind farms are managed by Innergex Renewable Energy 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 at the date made. The Fund is not undertaking to update any forward-looking statements.

%SEDAR: 00018706EF

SOURCE INNERGEX POWER INCOME FUND

For further information: For further information: Ms. Edith Ducharme, LL.L., Director - Financial Communications and Investor Relations, Innergex Renewable Energy Inc., Manager of the Fund, (450) 928-2550, ext. 222, educharme@innergex.com; Mr. Jean Trudel, MBA, Vice President - Finance and Investor Relations, Innergex Renewable Energy Inc., Manager of the Fund, (450) 928-2550, ext. 252, jtrudel@innergex.com; www.innergex.com

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INNERGEX POWER INCOME FUND

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