The federal government is encouraging Canadians to give to charity with a temporary First-Time Donor’s Super Credit (FDSC) proposed in Thursday’s 2013 budget.

The proposed tax credit would act as a supplement to the existing charitable donations tax credit (CDTC) and would allow for an individual — along with his or her spouse or common-law partner — to receive an additional 25% tax credit on a first-time charitable donation.

For instance, through the CDTC an individual will receive a non-refundable tax credit of 15% on a donation of $200 or less. But under the proposed super credit, a first-time donor would receive a 40% tax credit for the same amount, according to budget documents. Similarly, on a donation of more than $200 to a maximum of $1,000 an individual would receive a tax-credit of 29% under the CDTC; however, a first-time donor would receive a 54% tax credit.

To classify as a first-time donor, neither an individual nor his or her spouse or common-law partner could have claimed the CDTC (or FDSC) in their taxes since 2007.

The proposed tax credit can be shared between couples. However, budget documents state that the total amount of the couple’s combined donation cannot exceed the amount that would be allowed for a single individual claiming the FDSC.

Eligible donations for the FDSC must be made on or after Budget Day, according to budget documents, and the one-time claim can be made on donations made between 2013 and 2017. All donations must be made in cash to qualify for the FDSC.