Political Contribution Corporate Income Tax Credit
Amendments to the Election Act made November 30, 2017 affect a corporation's ability to make political contributions. For taxation years beginning on or after November 30, 2017, corporations effectively may not claim the political contribution corporate income tax credit.
The political contribution tax credit is for corporations that make eligible contributions to registered B.C. political parties, registered B.C. constituency associations or candidates for an election to the Legislative Assembly of B.C.
The credit is calculated as the lesser of:
1) The total of:
- 75% of contributions up to $100
- 50% of contributions between $100 and $550
- 33 1/3% of contributions in excess of $550
The Election Act was amended on November 30, 2017 to prohibit corporations from making political contributions to registered B.C. political parties, registered B.C. constituency associations or candidates for an election to the Legislative Assembly of B.C. As a result, corporations may no longer make contributions which are eligible for the political contribution tax credit.
Claiming the Credit
For political contributions made before November 30, 2017, you can claim the credit when you file your T2 Corporation Income Tax Return. Enter the amount of eligible contributions on line 896, and the amount of the credit you’re claiming on line 653 of Schedule 5, Tax Calculation Supplementary – Corporations.
The credit is non-refundable. There are no carry-forward or carry-back provisions.
You don’t have to file the official receipts with your return, but keep them in case Canada Revenue Agency (CRA) asks for them later. The CRA accepts photocopies only if the issuer certifies them as true copies.
The following legislation applies to the political contribution tax credit program: