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Quebec Draws Up New Cultural Donation Incentives 

Canadian Tax Adviser

 

July 09, 2013

 

Quebec has announced new incentives for cultural donations, including non-refundable credits for significant contributions and measures to encourage taxpayers to donate artworks for display in public or educational spaces. In an Information Bulletin dated July 3, 2013, Quebec states that these measures, which are intended to stimulate donations to support cultural organizations , have been made in response to recommendations by Quebec's Task Force on Cultural Philanthropy. These measures apply to donations made after July 3, 2013.

Large donations by individuals
The bulletin announces a 25% non-refundable tax credit (up to $6,250) on large donations that is available to individuals other than trusts. A donation of up to $25,000 in one or more instalments will be considered a large donation if the eligible amount of the donation is at least $5,000. A donation must be made before January 1, 2018.

 

The bulletin also notes that, instead of this tax credit for an initial donation, individuals (other than a trust) that play a patronage role in funding cultural organizations may claim a 30% non-refundable tax credit for donations of at least $250,000 during a year. The credit also applies to taxpayers who register their promise to make such a donation over a period of no more than 10 years with Quebec's Minister of Culture and Communications.

 

These credits apply to donations made to:

 

  • A registered charity operating in Quebec in the field of art or culture
  • A registered cultural or communications organization
  • Certain eligible museums.

 

Public artwork
The bulletin announces that Quebec will increase the eligible amount of a donation or a donation of public artwork intended for installation in certain accessible spaces to fair market value plus an additional 25% of fair market value. Quebec will increase the eligible amount for a similar donation to certain educational spaces to fair market value plus an additional 50% of fair market value. These measures apply to both individuals and corporations.

 

Studio space
The bulletin also provides an enhanced donation credit or deductions for donations of buildings capable of housing artists' studios. Quebec announces that it will increase the eligible amount of such a donation by 25% for purposes of calculating the tax credit or deduction for such donations. These measures apply to both individuals and corporations.

 

For more information, contact your KPMG adviser.

 

 

 

 

 

Information is current to July 09, 2013. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

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