Most donors who participate in the Ecological Gifts Program do not do so for financial reasons. However, as an incentive to donate - and to assist those who could not otherwise afford to participate - private and corporate landowners who donate property through the Program qualify for special income tax benefits.
The Income Tax Act provides favourable income tax treatment for gifts of ecologically sensitive land and interests in ecologically sensitive land. This favourable treatment includes the provision of a tax credit or deduction to donors and a reduction in the taxable capital gain realized on the disposition of the property. Corporate donors may deduct the amount of their gift directly from their taxable income, while the value of an individual's gift is converted to a non-refundable tax credit. Any unused portion of the credit or deduction may be carried forward for up to five years, and 0 percent of the capital gain is taxed instead of the usual 50 per cent.
Donors are strongly advised to obtain independent tax advice when considering making an ecogift, to ensure that all tax implications are clearly understood.
