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
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
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The CRA provides new housing rebates for individuals who have purchased or built a new house or have substantially renovated a house or made a major addition to a house who plan on living in it personally or letting a relative live there.
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