C-204 (45-1) - An Act to amend the Income Tax Act (volunteer firefighting and search and rescue volunteer tax credit)
Chamber
commons
Stage
1st Reading
Introduced
Jun 4, 2025
Progress
This bill raises the volunteer firefighter and search and rescue tax credit base amount from $6,000 to $10,000.
Key Changes
- Increases the volunteer firefighter tax credit base amount from $6,000 to $10,000
- Increases the search and rescue volunteer tax credit base amount from $6,000 to $10,000
- Updates the definition of 'eligible volunteer firefighting services' to include being available or on call for firefighting, emergency, and non-emergency duties
- Clarifies that volunteers may receive nominal remuneration that does not constitute a liveable wage without losing eligibility
- Changes take effect starting with the 2026 taxation year
Gotchas
- The bill does not change the minimum hours requirement (200 hours) that volunteers must meet to qualify for the credit — that threshold remains in the existing law.
- The new definition of 'eligible volunteer firefighting services' adds 'non-emergency duties' as qualifying activities, which could broaden who qualifies compared to the previous definition.
- The clarification allowing nominal remuneration (as long as it is not a liveable wage) may help volunteers in communities that provide small honoraria without disqualifying them from the credit.
- As a private member's bill, it requires majority support in the House of Commons and Senate to become law, which is not guaranteed.
- The fiscal cost to the federal government in foregone tax revenue is not specified in the bill.
Who's Affected
- Volunteer firefighters across Canada
- Search and rescue volunteers across Canada
- Local fire departments that rely on volunteer staff
- Federal government (reduced tax revenue)
Vibes
0 responses
Gotchas
- The bill does not change the minimum hours requirement (200 hours) that volunteers must meet to qualify for the credit — that threshold remains in the existing law.
- The new definition of 'eligible volunteer firefighting services' adds 'non-emergency duties' as qualifying activities, which could broaden who qualifies compared to the previous definition.
- The clarification allowing nominal remuneration (as long as it is not a liveable wage) may help volunteers in communities that provide small honoraria without disqualifying them from the credit.
- As a private member's bill, it requires majority support in the House of Commons and Senate to become law, which is not guaranteed.
- The fiscal cost to the federal government in foregone tax revenue is not specified in the bill.
Summary
Bill C-204 proposes changes to the Income Tax Act to increase the tax credit available to volunteer firefighters and search and rescue volunteers. Currently, these volunteers can claim a tax credit calculated on a base amount of $6,000. This bill would raise that base amount to $10,000, meaning eligible volunteers would receive a larger reduction in the taxes they owe. The bill also updates the definition of 'eligible volunteer firefighting services' to clarify that it includes being available or on call to perform firefighting services, emergency services, and non-emergency duties as needed. It also explicitly notes that volunteers may receive a small nominal payment, as long as it does not amount to a liveable wage. This bill was introduced as a private member's bill by Mr. Johns in June 2025. It would apply starting with the 2026 tax year. The intent is to better recognize and financially support the contributions of volunteer first responders across Canada.
Automatically generated from bill text using Claude
Vibes
0 responses