Cost Estimate of Bill C-239: An Act to amend the Income Tax Act (Charitable Gifts)

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Cost Estimate of Bill C-239:  An Act to amend the Income Tax Act (Charitable Gifts).pdf

Bill C-239 proposes to replace the current monetary charitable contributions regime with a new framework for individuals.  The new rate structure would enrich the existing federal incentives and provide that monetary gifts to registered charities made by individuals:

1.       up to the first $400 would receive a 75 per cent tax credit;

2.       for the subsequent $350 would receive a tax credit of 50 per cent; and,

3.       all amounts above $750 would receive a tax credit of 33⅓ per cent.

Overall, if C-239 were implemented, it would cost the Government roughly $1.7 billion more in 2016, rising to $1.9 billion in 2020.  This would bring the total annual cost of the credit to about $4.2 billion in 2016, an increase of about 68%.

Overall fiscal cost of Bill C-239