Jim Prentice backtracks on charitable tax credit cut

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

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

Until last month, donorscould claim 21 per cent on charitable donationsover $200, but the 2015-2016 provincial budget slashedthat rate to 12.75 per cent, the rate prior to2007.

The reduction was roundly castigated duringthe 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 cutwould have savedabout $90 million annually, Prenticesaid 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 LeaderRachel 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."