Jim Prentice backtracks on charitable tax credit cut

Progressive Conservative Leader Jim Prentice has backtracked on his government's reduction of the charitable donation tax credit, which was part of the spring budget.

A new Tory government will return to the previous rate, he announced Tuesday.

Until last month, donors could claim 21 per cent on charitable donations over $200, but the 2015-2016 provincial budget slashed that rate to 12.75 per cent, the rate prior to 2007.

The reduction was roundly castigated during the first two weeks of the election campaign.

"I've said during this campaign that leadership is about difficult and sometimes unpopular choices," Prentice said in a news release Tuesday. "But hearing from Albertans during this campaign, it's become clear that this choice was more than simply unpopular."

While the cut would have saved about $90 million annually, Prentice said restoring the tax credit will not affect the 2017 timeline for balancing the budget.

He offered no details on where he would find the extra $90 million.

NDP Leader Rachel Notley said her party, if it forms the government after the May 5th election, planned to reverse that decision.

"I think it was definitely evidence of the wrong priorities by Jim Prentice when the decision was made to go after that $90 million on the backs of charities."