An Act to amend the Income Tax Act (northern residents deduction)
Bill C-401 was a Liberal Private Member's Bill amending the Income Tax Act (R.S.C. 1985, c. 1, 5th Supp.) to expand the Northern Residents Deductions for taxpayers in the Northern Zone (Zone A: Yukon, NWT, Nunavut, plus parts of northern BC, AB, SK, MB, ON, QC, NL) and Intermediate Zone (Zone B). The current deduction provides up to approximately $11/day for living in a designated northern zone (capped at approximately $4,015 per year for full-year residents). The bill would have indexed the deduction to inflation, expanded the Intermediate Zone geographic coverage, and added a new sub-zone for fly-in-only communities. Did not pass second reading. The 2024 federal budget did not include the proposed indexation.
Status
Quick learn
Would expand the Northern Residents Deduction, the income-tax break for people living in the North (worth up to about $4,015 a year), by indexing it to inflation and widening which communities qualify. A Liberal private member's bill; it did not pass second reading.
Issues this bill touches
- Cost of Living
Expands the federal Northern Residents Deduction. Cost-of-living adjustment for residents of designated northern zones.
- Northern & Arctic Sovereignty
Tax relief for northern residents. Most claimants live in territories or designated northern zones.
Legislative history
- First reading
First reading in the House of Commons.
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Official source
Read full text on Parliament of Canada