82.7 Income Tax Amendments Preservation of Historic Buildings
Whereas, The need to encourage the preservation of Canada’s heritage through the restoration of designated historic sites is a recognized and accepted fact; and,
Whereas, Offering incentives through the Income Tax Act could be an important method of making heritage building preservation and restoration a realistic alternative to demolition; and,
Whereas, Demolition is treated in the Income Tax Act in a generous manner, providing a write-off of 25% of the depreciated cost; and,
Whereas, Extensive renovation of historic buildings is treated as new constructed; that is, a capital expenditure, which unlike repairs, is not a deductible expense; and,
Whereas, The Income Tax Act (Canada) provides no incentives for renovation of designated historic buildings; be it,
RESOLVED, That The National Council of Women of Canada urge the Government of Canada to amend the federal Income Tax Act –
- To make costs incurred in the rehabilitation of designated historic buildings 100% deductible over a three-year period;
- To make the purchase costs of a designated historic building 100% deductible over a five-year period, provided the purchaser has rehabilitated the building to a ‘substantial’ degree;
- To provide a deduction for the purchaser of a designated historic building if there is a financial loss incurred due to rehabilitation of the site in a given year;
- To allow the incentive for investment in new residential construction (MURB provisions of the Act) to apply in renovation or conversion of an old building for residential use.
- To prevent the purchaser of a designated historic building from deducting the remaining capital cost (terminal loss) in the event of demolition.