Bill S-205 explained in plain English
An Act to amend the Income Tax Act (carbon offset tax credit)
Federal Parliament bill summary, status, timeline, sponsor, votes, and official sources.
At a glance
Official Parliament of Canada snapshot for 41st Parliament, 1st Session. MP vote breakdowns appear when the House of Commons publishes a recorded division export for that bill. Senate and House stage details include official debate/sitting links when LEGISinfo publishes them.
Our plain-language take, written for civic education.
Source: By PoliticalData.ca
Bill S-205 would add a new non-refundable federal tax credit for individuals who pay for carbon offset investments approved by the Minister.
This bill proposes to amend the federal Income Tax Act to create a new tax credit for people who purchase carbon offsets. Under the proposed changes, individuals could reduce their federal income tax by claiming a credit based on money they spend on approved carbon offset projects. The bill defines an "offset project" as any project, program, or activity that avoids, reduces, stores, displaces, or reduces the effects of carbon dioxide emissions. Only spending on approved projects through designated carbon offset providers would qualify for the credit. The Minister of National Revenue would have the authority to approve which offset projects qualify and which organizations can be carbon offset providers. The bill also makes related technical changes to how other tax credits interact with this new credit to prevent double-counting or improper stacking of credits. The new credit would apply starting in the 2012 taxation year.
- Creates a new non-refundable federal tax credit for eligible carbon offset purchase expenses paid to approved carbon offset providers
- Defines 'offset project' as any project, program, or activity that avoids, reduces, sequesters, displaces, or mitigates the effects of carbon dioxide emissions
- Grants the Minister of National Revenue authority to approve offset projects or types of projects based on prescribed criteria
- Grants the Minister authority to designate persons or entities as carbon offset providers
- Allows the Minister to revoke approvals of offset projects or designations of offset providers in writing
- Requires that individuals must file receipts with the Minister to claim the credit
- Excludes from the credit any spending that is required to be paid under federal or provincial law
- Excludes from the credit spending with parties that the individual does not deal with at arm's length, or projects managed by such parties
- Makes technical changes to sections 118.3, 118.61, 118.8, 118.81, 118.92, 118.94, 127.531, and 128 of the Income Tax Act to coordinate the new credit with existing tax credits
- Specifies the order in which various tax credits are applied when computing tax payable
- Individuals who purchase carbon offsets through approved providers
- Canadian residents for tax purposes (non-residents cannot claim the credit unless substantially all their income is from Canadian sources)
- The Minister of National Revenue (responsible for approving projects and designating providers)
- Persons or entities seeking to be designated as carbon offset providers
- Project operators managing approved carbon offset projects
- Individuals have the right to claim the carbon offset tax credit if they pay eligible expenses to approved providers and file receipts with the Minister
- The credit is non-refundable, meaning it can only reduce tax owed, not generate a refund
- Individuals must file receipts evidencing their eligible carbon offset purchase expenses with the Minister to claim the credit
- The Minister has sole discretion to approve offset projects and designate providers based on prescribed criteria (criteria are not specified in the bill)
- The Minister may revoke project approvals or provider designations at any time in writing
- Bill had first reading in the Senate on September 29, 2011
- The proposed new section 118.06 and related amendments would apply to the 2012 taxation year and all subsequent taxation years
- Creates a new federal non-refundable tax credit available to individuals who purchase approved carbon offsets
- The credit amount is calculated as a percentage (the 'appropriate percentage' for the taxation year) multiplied by total eligible carbon offset purchase expenses
- The bill does not specify what the percentage will be; this would be determined by regulation or government policy
- The credit reduces federal income tax payable but cannot result in a refund
- Related changes to other tax credits ensure the new credit does not improperly stack with or duplicate existing credits
- The bill does not specify enforcement mechanisms or penalties for non-compliance
- The bill does not address penalties for false claims of eligible expenses or fraudulent receipts
- The bill does not specify consequences for providers or projects that fail to meet approval criteria
- The bill does not specify what the 'appropriate percentage' will be for calculating the credit amount
- The bill does not specify what 'prescribed criteria' the Minister will use to approve offset projects or evaluate providers
- The bill does not define which government agency would administer the provider designation and approval process
- The bill does not explain how 'arm's length' relationships will be determined or verified
- The bill does not detail what documentation or receipts must be filed with the Minister
- The bill does not specify how or when the Minister will approve projects or designate providers
- The bill does not state whether eligible expenses must be paid in Canadian dollars or what conversion rules apply to foreign payments
- The bill does not clarify whether the credit applies to carbon offset purchases made outside Canada
- The bill does not specify enforcement mechanisms or penalties for false claims
- The bill does not explain how the credit interacts with provincial carbon pricing schemes or other carbon-related incentives
New section 118.06 added to create a carbon offset tax credit; sections 118.3, 118.61, 118.8, 118.81, 118.92, 118.94, 127.531, and 128 amended to coordinate the new credit with other tax credits and prevent improper stacking
Source: Section 1(1), Sections 2-9
Generated using AI from official bill text. Not legal advice. It is written by PoliticalData.ca for civic education, automatically checked and spot-reviewed before publishing.
Official textParliamentary Process
Bill S-205 completed first reading in the Senate on September 29, 2011, and was later referred to committee after second reading.
This artifact summarizes the procedural steps for Bill S-205 in the Senate. It indicates that the bill completed its first reading on September 29, 2011. It then moved to second reading on November 23, 2011, and was subsequently referred to a committee on May 9, 2012. The artifact also notes major speeches related to the bill during its second reading and consideration in committee, as well as mentions similar bills from previous Parliaments. The current status is 'At consideration in committee in the Senate'.
In a Senate sitting on September 29, 2011, Bill S-205, aiming to amend the Income Tax Act regarding a carbon offset tax credit, was introduced and received its first reading.
On September 29, 2011, the Senate held a sitting that included the first reading of Bill S-205, an Act to amend the Income Tax Act concerning a carbon offset tax credit. This means the bill was formally introduced and read for the first time. The sitting also included other proceedings such as Senators' Statements on various topics, Routine Proceedings including other bill introductions and committee study notices, Question Period addressing government actions, and the adjournment of a debate on a motion concerning Asia Bibi. The debate on Bill S-205 itself is not detailed in this record, only its first reading.
Bill S-205 completed second reading in the Senate on November 23, 2011, and was subsequently referred to committee for further consideration.
This artifact describes the progress of Bill S-205 in the Senate. It shows that the bill completed its second reading stage on November 23, 2011. Following this, the bill was referred to a committee on May 9, 2012, where it is currently being considered. The artifact also notes that there were major speeches related to the bill on February 8, April 4, and May 9, 2012, and lists specific speeches made during the second reading by Senator Grant Mitchell and Senator Claude Carignan. It also references similar bills from previous Parliaments.
During a Senate sitting on November 23, 2011, various procedural matters were addressed, including the adjournment of debate on Bill S-205 concerning carbon offset tax credits and the passage of the Eeyou Marine Region Land Claims Agreement Bill.
On November 23, 2011, the Senate convened for a sitting that included Senator statements on various topics, routine proceedings like tabling reports and introducing bills, question period on issues including environment and seniors' benefits, and the consideration of various bills. Notably, the debate on Bill S-205, an Act to amend the Income Tax Act regarding a carbon offset tax credit, was adjourned. The sitting also included the third reading and passage of the Eeyou Marine Region Land Claims Agreement Bill (Bill C-22), continued debate on a motion concerning the Marketing Freedom for Grain Farmers Bill (Bill C-18), and a message from the House of Commons regarding Bill S-3.
We don't have a plain-language summary for Sponsor’s speech yet. The official source linked below is the full record.
During a Senate sitting on February 8, 2012, senators discussed various issues, tabled reports, debated questions, and continued debate on Bill S-205 concerning a carbon offset tax credit, with that specific debate being adjourned.
This document is a record of a Senate sitting on February 8, 2012. It includes various proceedings such as Senators' Statements on topics like parliamentary conduct, Inuktitut Language Week, suicide prevention, and the work of Firefighters Without Borders Canada. Routine proceedings involved tabling reports from Inter-Parliamentary Union meetings. Question Period addressed issues like information obtained through torture, trans fat regulations, employment and service levels, and bilingual services for the Coast Guard. The Senate also debated or adjourned debate on several items, including Bill S-205, which aims to amend the Income Tax Act regarding a carbon offset tax credit. Other debated items included a bill to amend the Interpretation Act, a report on reducing barriers to post-secondary education, and motions regarding maple syrup industry regulations and mental health services. Notably, the debate on Bill S-205, An Act to amend the Income Tax Act (carbon offset tax credit), was adjourned by Senator Comeau, who wished for more time to review the proposals.
During the Senate's second reading debate on Bill S-205, Senator Bert Brown questioned the scientific consensus on climate change and the IPCC, leading to a debate with Senator Grant Mitchell, before the debate on the bill was adjourned.
This artifact is a record of the Senate debate that took place on April 4, 2012, during the second reading of Bill S-205, an Act to amend the Income Tax Act concerning a carbon offset tax credit. The Senate's proceedings on this day included various statements, routine proceedings, question period, and orders of the day. The debate on Bill S-205 was continued, with Senator Bert Brown presenting arguments against the scientific consensus on climate change and the Intergovernmental Panel on Climate Change (IPCC). He cited several scientists who, according to him, question the integrity of the IPCC and its findings, and argued that human activity's contribution to CO2 levels is minimal. Senator Grant Mitchell countered Senator Brown's points, questioning the feasibility of a global conspiracy among scientists and asking about government actions related to climate change. The debate on Bill S-205 was adjourned to a later date. Other legislative items and inquiries were also addressed during this sitting.
During a Senate sitting on May 9, 2012, senators discussed various issues, tabled reports, debated Bill C-26 on criminal code amendments, and advanced Bill S-205, regarding a carbon offset tax credit, to committee.
This document is a record of a Senate sitting on May 9, 2012. It includes various statements from senators on topics such as emergency preparedness, cultural heritage, youth scholarships, cross-border shopping, global health, and multiple sclerosis awareness. It also details the tabling of several committee reports related to international parliamentary associations and banking, trade, and commerce. The sitting included a question period concerning the Tobacco Control Program, the Canadian Agricultural Adaptation Program, a national mental health strategy, and the transfer of Ste. Anne's Hospital. Finally, the Senate proceeded with the second reading of two bills: Bill C-26, concerning amendments to the Criminal Code regarding citizen's arrest and defences of property and persons, which was debated and adjourned; and Bill S-205, concerning amendments to the Income Tax Act for a carbon offset tax credit, which was read a second time and referred to committee. The record also includes continuations of debates on other inquiries and reports.
Bill S-205 was undergoing consideration in a Senate committee on October 16, 2012, with this stage of the process not yet finished.
This record indicates that on October 16, 2012, the Senate was in the process of considering Bill S-205 in committee. This stage of the process had not yet been completed. The bill was referred to committee on May 9, 2012, after its second reading. The record also notes previous readings and speeches related to the bill, as well as similar bills from previous parliamentary sessions.
We don't have a plain-language summary for Report stage yet. The official source linked below is the full record.
We don't have a plain-language summary for Third reading yet. The official source linked below is the full record.
We don't have a plain-language summary for First reading yet. The official source linked below is the full record.
We don't have a plain-language summary for Second reading yet. The official source linked below is the full record.
We don't have a plain-language summary for Consideration in committee yet. The official source linked below is the full record.
We don't have a plain-language summary for Report stage yet. The official source linked below is the full record.
We don't have a plain-language summary for Third reading yet. The official source linked below is the full record.
Debate and sitting links point to official parliamentary sources when LEGISinfo publishes them. Any plain-language discussion summaries should be generated from those official texts and reviewed before public display.
Vote Summary
This bill is still active. We only show vote counts after the legislature publishes a recorded division.
No published representative vote breakdown
This bill is still moving through the process. When a recorded division is published, representative positions can be listed here.
Official sources
Status, sponsor, votes, and timeline on this page are drawn from these official legislative sources and public records. Each summary above is attributed to its own source.
How this data is sourced