Tax Credit Carry-forward Extended for Donations of Ecologically Sensitive Land

Avril 2014

( Disponible en anglais seulement )

The Budget expands upon an existing incentive for gifts of ecologically sensitive land. Under the Tax Act, donors of land that has been certified by the Minister of the Environment as “ecologically sensitive” are already eligible to claim enhanced tax recognition for such donation as compared with normal charitable gifts. Whereas tax credits or deductions for charitable donations are generally capped at 75% of the donor’s income, gifts of ecologically sensitive land can be claimed up to 100% of the donor’s income.

This enhanced tax treatment promotes the donation of ecological property in an effort to protect the natural environment in Canada. In order to qualify for this special tax treatment, the certified ecologically sensitive land must be donated to the federal or provincial government, a Canadian municipality, a public body performing a function of government in Canada (often a body set up by a First Nation in the context of self governance), or to a registered environmental conservation charity that has been approved by the Minister of the Environment.

Currently, charitable donations of ecological property not claimed in a period may be carried forward for up to 5 years. Because gifts of ecologically sensitive land may be of large value, donors without significant other income may not be able to use the full tax credit or deduction within the carry-forward period. The Budget proposes to extend the carry-forward for donations of ecologically sensitive land to 10 years, thus doubling the length of the normal carry-forward period.

The Budget notes that this change was recommended by the House of Commons Standing Committee on Finance in its February 11, 2013 report. It is hoped that this change will encourage further donations of ecologically sensitive land for the preservation of Canada’s natural environment and heritage.

This measure will apply to donations made on or after Budget Day.

Avis de non-responsabilité

Cette publication est fournie à titre informatif uniquement. Elle peut contenir des éléments provenant d'autres sources et nous ne garantissons pas son exactitude. Cette publication n'est ni un avis ni un conseil juridique.

Miller Thomson S.E.N.C.R.L., s.r.l. utilise vos coordonnées dans le but de vous envoyer des communications électroniques portant sur des questions juridiques, des séminaires ou des événements susceptibles de vous intéresser. Si vous avez des questions concernant nos pratiques d'information ou nos obligations en vertu de la Loi canadienne anti-pourriel, veuillez faire parvenir un courriel à privacy@millerthomson.com..

© 2019 Miller Thomson S.E.N.C.R.L., s.r.l. Cette publication peut être reproduite et distribuée intégralement sous réserve qu'aucune modification n'y soit apportée, que ce soit dans sa forme ou son contenu. Toute autre forme de reproduction ou de distribution nécessite le consentement écrit préalable de Miller Thomson S.E.N.C.R.L., s.r.l. qui peut être obtenu en faisant parvenir un courriel à newsletters@millerthomson.com.