Federal Budget Legislative Proposals Released

The Finance Department released legislative proposals for consultative purposes August 16 which include provisions of the March 22, 2011 federal budget, reintroduced on June 6, 2011. The proposals include the following:

New non-refundable tax credits:

• The $2000 Family Caregiver Tax Credit
• The New Children's Arts Tax Credit which is in addition to the Fitness Tax Credit (Reviewing returns at the Canada Revenue Agency)
• The Volunteer Firefighters Tax Credit 
• The Removal of the $10,000 limit on eligible expenses under Medical Expense Tax Credit for dependent relatives.
• A series of changes for students who claim the Tuition, Education and Textbook Credits, and those who wish to allocate their RESPs amongst siblings without forfeiting CESGs.

Changes are also introduced for a variety of retirement pension plans including RRSPs and IPPs, rules relating to corporations with interests in partnerships, the calculation of the "kiddie taxî and charitable donation compliance rules, including the "exclusivity of purpose and functionî test for registered Canadian amateur athletic associations, on which a consultation was launched on July 4, 2011.

Changes for business include a variety of capital cost allowance provisions that accelerate write-offs for clean energy generation and conservation equipment, better align deduction sin the oil sands sector with the oil and gas sector, and provide for an expansion of the Mineral Exploration Tax Credit for one year to flow-through share agreements entered into before March 31, 2012.