ORILLIA,
June 8, 2006 – The Honourable Rona Ambrose, Minister
of the Environment, today announced the donation
of Canada’s 500th ecological gift, namely the
Prairie Smoke nature reserve. This brings the
total value of ecological gift lands to more than
$150 million dollars. The property is 275 hectares
of a rare type of habitat and is located near
Orillia, Ontario.
The Ecological Gifts Program
enables landowners to create a natural legacy
and protect family lands, while benefiting from
specific tax benefits. Many Canadians who own
wetlands, woodlands and other wildlife habitats
cherish their land and want to see its natural
features preserved.
“The donation of the Prairie
Smoke property marks an important milestone in
the Ecological Gifts Program. It will become part
of the 46,000 hectares of donated private land
already in protection under this program – a significant
contribution by Canadian landowners”, said Minister
Ambrose. “This is a realistic, results-oriented
approach to protecting our environment,” added
Minister Ambrose. "The Government’s introduction
of a new tax incentive for donations of sensitive
lands demonstrates our firm commitment to real
environmental solutions and economic benefits
to Canadians."
The Prairie Smoke nature reserve,
donated by Karen Popp of Brechin, Ontario, to
the Nature Conservancy of Canada, is the latest
addition to a network of nature reserves across
Canada. Prairie Smoke is part of the Carden Plain,
home to globally rare occurrences of alvar, a
prairie-like ecosystem situated over limestone
bedrock. This seemingly harsh environment is home
to many rare and uncommon species - from a blanket
of native wildflowers, such as the namesake Prairie
Smoke, to endangered birds, such as the Eastern
Loggerhead Shrike. In addition, the donated land
is in the centre of an internationally recognized
Important Bird Area (IBA). IBAs are sites that
provide essential habitat for one or more species
of birds.
In recognition of these generous
donations of land by Canadians, the Government
of Canada announced in Budget 2006 that Ecological
Gifts made after May 2, 2006 will be exempt from
the capital gains inclusion for income tax purposes.
An ecological gift is a donation
of land or an interest in land - such as a conservation
easement, covenant or servitude - that has been
certified as "ecologically sensitive"
according to specific national and provincial
criteria, to an approved environmental charity
or any level of government. Ecologically sensitive
lands are areas or sites that currently, or could
in the future, significantly contribute to the
conservation of Canada's biodiversity and environmental
heritage. In exchange for their gift, donors of
certified ecologically sensitive lands enjoy special
income tax provisions specific to their gift.
Ecological gifts receive tax treatment that is
different from most other charitable gifts. Some
benefits that they may receive are reduced taxable
capital gain on the disposition of the property;
no income limit for calculating the tax credit/deduction;
donation value certified by the Government of
Canada; and a tax liability for donees that do
not protect the gifted land.
