Political Contribution Tax Credit
Information Bulletin 6304, January 2006
Purpose
The Ontario political contribution tax credit is intended to encourage greater participation in the political process.
Tax Credit
For 2004 and subsequent tax years
The annual contribution levels and resulting Ontario political contribution tax credits are indexed based on requirements specified in the Elections Finances Act.
The formula is:
- 75% of the first $336, plus
- 50% of the next $784, plus
- 33.33% of an amount exceeding $1,120, but not more than $2,548.
The maximum yearly Ontario political contribution tax credit is $1,120 which is reached when you have made eligible contributions totalling $2,548. The tax credit is refundable. This means that if your total amount of tax credits is more than your taxes owing, the Canada Revenue Agency will issue a refund based on the difference.
For 1999 to 2003 tax years
The amount of the Ontario political contribution tax credit is calculated on the total contribution made in the year, using the following formula:
- 75% of the first $300, plus
- 50% of the next $700, plus
- 33.33% of an amount exceeding $1,000, but not more than $2,275.
The maximum yearly Ontario political contribution tax credit is $1,000 which is reached when you have made eligible contributions totalling $2,275. The tax credit is refundable for the 1999 to 2003 tax years.
For 1998 and prior tax years
The amount of the Ontario political contribution tax credit is calculated on the total contribution made in the year, using the following formula:
- 75% of the first $200, plus
- 50% of the next $600, plus
- 33.33% of any amount exceeding $800.
The maximum yearly Ontario political contribution tax credit is $750 which is reached when you have made eligible contributions totalling $1,700. For 1998 and prior tax years, the tax credit is non-refundable and can only be used to reduce Ontario tax payable.
Eligibility
On December 31 of the tax year, you must:
- be an Ontario resident and
- have made eligible contributions to a registered Ontario political party, registered constituency association or to a candidate in an Ontario provincial election during that year.
Who can Claim
Either spouse or common-law partner may claim the Ontario political contribution tax credit. However, a single contribution cannot be divided between spouses (or common-law partners) if only one official receipt was issued. The Ontario political contribution tax credit cannot be claimed for contributions to municipal or federal elections.
This tax credit can only be claimed for the year in which the contribution was made. The Ontario political contribution tax credit may be claimed on the return of a person who died in the tax year.
How to claim
Calculate your credit by using the chart provided in the Completing Your Ontario Forms instruction sheet included with the federal T1 General income tax return package. Complete and return the form ON479, Ontario Credits with the rest of your income tax return.
Receipts
When filing for the Ontario political contribution tax credit, you must attach all official receipts to the Ontario Credits form. Official receipts are available from the Chief Financial Officer of a registered party, registered constituency association or candidate in an Ontario provincial election.
Additional information about official receipts and political contributions may be obtained from:
Elections Ontario-Election Finances
51 Rolark Drive
Toronto ON M1R 3B1
Telephone: 416 325-9401 or 1 866 566-9066
Facsimile: 416 325-9466.
Website: www.electionsontario.on.ca
Enquiries
Call us at:
For more information, or to obtain bulletins on other Ministry of Revenue programs, call the ministry:
- Toll-free: 1 866 ONT-TAXS (1 866 668-8297)
- Teletypewriter (TTY): 1 800 263-7776 (Ontario only)
Write to us at:
Ministry of Revenue
Tax Advisory Services Branch
Income Tax Related Programs Section
33 King Street West
PO Box 624
Oshawa ON L1H 8H8
Visit our website at:
This Information Bulletin is provided as a guide only.
It is not intended as a substitute for the Income Tax Act (Ontario) and Regulations.
© Queen's Printer for Ontario, 1998
ISBN 0-7794-8594-7
