These notes are from the website of Elections Canada. For more information on political financing from Elections Canada, Click Here.
Although contributions may be made in the form of money, goods or services, only a monetary contribution qualifies for an income tax credit. The Income Tax Act provides the following tax credits for eligible contributions to candidates and registered political parties in any one calendar year:
| Contribution amount | Corresponding tax credit |
|---|---|
| $0.01 to $400.00 | 75% of the contribution |
| $400.01 to $750.00 | $300 plus 50% of the contribution over $400 |
| $750.01 to $1,275.00 | $475 plus 33.3% of the contribution over $750 |
| $1,275.01 to $5,000 | maximum credit of $650 |
To obtain an income tax credit, a contributor must obtain an official receipt and submit it when filing his or her tax return. Only the official agent of a confirmed candidate or a registered agent of a registered political party can issue official receipts for eligible contributions.
Any individual who is a Canadian citizen or permanent resident of Canada may contribute up to $5,000 in total in a calendar year to a particular registered political party and its registered electoral district associations, nomination contestants and candidates.