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Tax Benefits

Most people who donate through the Ecological Gifts Program do not do so for financial reasons. However, as an incentive to take part--and to assist those who could not otherwise afford to donate--the Income Tax Act provides favourable income-tax treatment for gifts of ecologically sensitive land and partial interests in land. In Quebec, there are also provincial tax benefits under the Quebec Taxation Act. The benefits of ecological gifts can thus be significant when the federal and provincial tax benefits are combined.

Specific tax benefits include:

  • Corporate donors may deduct the amount of their ecological gift directly from their taxable income, while the value of an individual’s ecological gift is converted to a non-refundable tax credit. The tax credit is calculated by applying a rate of 15 per cent to the first $200 of the donor’s total gifts for the year and 29 per cent to the balance.
  • In most provinces, a reduction in federal tax payable will also reduce provincial tax.
  • While for most gifts the taxable portion is 50 per cent of the capital gain, in the case of an ecological gift it is reduced to 0.
  • NEW! The 5-year carry-forward period for claiming these donations is now doubled to 10 years.

More detailed information on the tax benefits of the Ecological Gifts Program can be found in the Ecological Gifts Program Handbook or the Donation and Income Tax Scenarios factsheet.