The Charitable Gift Tax Credit (CIDB) gives the individual a 15% non-refundable tax credit on the first $ 200 of annual charitable donations and a 29% credit on the portion of donations exceeding $ 200. $. According to an administrative practice, the Canada Revenue Agency authorizes an individual to deduct donations made by himself or her spouse or common-law partner.
In order to encourage new donors to make charitable donations, the 2013 budget proposes to introduce a temporary credit, the Super Credit for First Charitable Giving (SCPDB). This credit completes the CIDB by adding a 25% tax credit for donations up to $ 1,000 made for the first time by a donor. Thus, the first donor will be entitled to a 40% federal credit on donations of $ 200 or less and a 54% federal credit on the portion of donations that exceeds $ 200, to a maximum of $ 1,000. Only monetary donations will be eligible for the SCPDB.
An individual will be considered to have made a first donation if neither he nor his spouse or common-law partner has applied to the CIDB or the KBCS for a taxation year after 2007. For this purpose, the spouse or common-law partner of the individual is his or her spouse or common-law partner on December 31 of the taxation year in respect of which the SCPDB is being claimed. Couples of first donors will be able to share the SCPDB with respect to a taxation year. However, the total amounts claimed by an individual and his or her spouse or common-law partner can not exceed the amount that would otherwise have been allowed had the individual, spouse or common-law partner been the only one to claim the SCPDB.
The SCPDB will apply to donations made as of the Budget Date and can only be claimed once for the 2013 taxation year or for a subsequent taxation year prior to 2018.