This enactment amends subsection 118.‍1(3) of the Income Tax Act to have the tax credit for charitable and other gifts computed in the same manner as the tax credit for monetary contributions to federal political parties and candidates, when the total amount of those gifts in a taxation year does not exceed $1,625. It also provides for a manner to compute the tax credit when the total amount exceeds $1,625.

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

Tax credit for gifts

(3) For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted any amount that the individual claims that does not exceed,

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  (a) if the individual’s total gifts for the year does not exceed $400, 75% of the total gifts;

• (b) if the individual’s total gifts for the year exceeds $400 without exceeding $750, $300 plus 50% of the amount by which the individual’s total gifts for the year exceeds $400;

• (c) if the individual’s total gifts for the year exceeds $750 without exceeding $1,625, $475 plus 33 1/3% of the amount by which the individual’s total gifts for the year exceeds $750; and

• (d) if the individual’s total gifts for the year exceeds $1,625, $650 plus the amount equal to the product obtained by multiplying the highest individual percentage that applies to the individual for the year by the amount by which the individual’s total gifts for the year exceeds $1,625.

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