On March 22, 2017, federal Finance Minister Bill Morneau tabled the second budget of the Liberal majority Federal Government (“Budget 2017”). While Budget 2017 again emphasizes the Liberal election platform focusing on economic growth, job creation and supporting a strong middle class, Budget 2017, like Budget 2016, does not include any new tax incentives for the charity and not-for-profit (“NFP”) sector, as has been enjoyed in previous federal budgets.
The significant developments for the charitable and NFP sector in Budget 2017 include several measures intended to protect gifts of ecologically sensitive land under the ecological gifts program, repeal of the “additional” deduction available to corporations that donate medicine to eligible registered charities (although donor corporations will continue to be able to deduct the fair market value of donated medicine), and confirmation that the First-Time Donor’s Super Credit will expire in the year 2017 as planned. Rather than incentives, Budget 2017 focuses on providing funding commitments to certain parts of the charity and NFP sector, including investments in affordable housing, investment in programs to support youth education, and others. As well, Budget 2017 proposes amendments that purport to strengthen Canada’s anti-money laundering and anti-terrorist financing regime.
For the balance of this Bulletin, please see Charity & NFP Law Bulletin No. 399.