This establishes a major increase in tax assistance to the donors of land titles, easements, covenants or servitudes of ecologically sensitive land. A. Such changes had been recommended by many organizations including the National Round Table on the Environment and the Economy in its 1994 and 1999 Reports. The federal government adopted new changes in capital gains provisions under the Income Tax Act in February 2000. The Government of Quebec modified the Quebec Income Tax Act in its May 1994 and March 2000 Budget in order to promote donation of ecologically sensitive lands in the province. Provisions of the Quebec legislation are being harmonized with the federal legislation.
Further benefits accrue through reduced federal surtaxes and provincial taxes.
The gift of private land to a municipal government or non-government registered charities is different as the recipient is not the Crown. However, ecological gifts may also now be given to Crown agencies and are treated in the same way as gifts to other qualified recipient agencies, effective March 1997. This is designed to encourage maintaining the donation in a conservation status. This penalty provision it should be noted would not apply to the provincial portion of a tax benefit received for an ecological gift in Quebec as this is governed under the Quebec Income Tax Act . A. Donations of ecologically sensitive private land, covenants, easements and servitudes are encompassed under this tax measure.