Summary Policy

Date
September 3, 2003

Reference Number
CSP - E05

Key Words
Ecological gift - Eco-gift - Ecological property

Policy Statement

Ecologically sensitive land is land that the Minister of the Environment has certified as important to the preservation of Canada's environmental heritage.

The Income Tax Act provides favourable tax treatment for the disposition of ecologically sensitive land (including a covenant, an easement, or a servitude) to Canada, a province or territory, a Canadian municipality or a registered charity that the Minister of the Environment has designated. This treatment includes a reduction in capital gains realized on the disposition of ecologically sensitive land and the provision of a tax credit or a deduction to donors, up to 100% of their net income.

References

• Disposition of Property, CSP - P19.
• Donor, CSP - D17.
• Registered Charities Newsletter, Issue No. 22.
• Income Tax Act, R.S.C. 1985 (5^th supp.) c. 1, sub-paras. 38(a.2)(i), 69(1)(b)(ii), para. 110.1(1)(d) and ss. 118.1(1).
• The Ecological Gifts Program.