Improved income tax treatment of certified ecological gifts

Improved Income Tax Treatment of Certified Ecological Gifts (PDF Version, 225 KB)

In order to help Canada's landowners and conservation groups preserve Canada's natural heritage, the Government of Canada has eliminated the tax on capital gains for all certified ecological gift donations made on or after May 2, 2006 by reducing the inclusion rate to zero.

The Ecological Gifts Program (EGP) provides a way for Canadians with ecologically-sensitive land to protect natural areas and leave a legacy for future generations. Since 1995, donations of ecologically-sensitive land, or easements, covenants and servitudes on such land have been eligible for special tax assistance. Ecological gifts can be made to environmental charities approved by Environment Canada, as well as to any level of government in Canada.  Under the EGP, Environment Canada certifies the land is ecologically sensitive, approves the recipient, and certifies the fair market value of the gift. In addition to the charitable donations tax credit (for individuals) and the charitable donations deduction (for corporations), donations made on or after May 2, 2006 and certified under the Ecological Gifts Program will no longer be subject to tax on any capital gains accruing in respect of the property. 

For more information, please consult:

Finance Canada, The Budget Plan 2006.  Annexe 3:  Tax Measures: Supplementary Information and Notices of Ways and Means Motions.

Canada Revenue Agency website.