DFK Tax Newsletter

Issue 2 - 2025 Edition - May 30, 2025 - Geoff Brookes, CPA (MB), Enrolled Agent (IRS), Craig Ross

The “Canadian Snowbird Act” (2025, U.S. House of Representatives)

The “Canadian Snowbird Act” is *proposed* law (not enacted to date). Whether or not it is passed into law remains to be seen.

Various versions of this bill have been brought forward in the last 10 years. So why pay attention to the 2025 version? Is it any more likely to be passed into law?

Here are a few reasons to watch this bill bounce down the halls of Congress:

  1. It has the support of several influential Republican members of the House of Representatives;
  2. It has some bipartisan support;
  3. It may be politically expedient for the Trump administration to make a conciliatory gesture to Canadians after the recent tariff issues;
  4. It costs the US comparatively little, and may provide some benefits economically; and
  5. It may be a sweetener or incentive in the attempts to win support for the budget bill.

What the bill would do, if passed in its current form:

  1. Create a new non-visa visitor category, “Canadian Retiree” (see below); 
  2. Create a new expansion to the Income Tax definition of “Non-resident alien” under the Internal Revenue Code (cross referenced to the Canadian Retiree definition); and
  3. For a “Canadian Retiree”, as defined, would extend the maximum length of stay to 240 days (increased from 182).

Regarding US income taxation of resident aliens, the new rules as drafted have some technical deficiencies. You should obtain expert tax advice.

To be a Canadian Retiree under these rules, an individual must meet all of the following requirements:

(A) is a citizen of Canada; 

(B) is at least 50 years of age; 

(C) maintains a residence in Canada; 

(D) owns a residence in the United States, or has signed a rental agreement for accommodations in the United States for the duration of the stay in the United States;

(E ) will not work in the United States, for a US employer; and

( F ) Is not otherwise inadmissible or deportable, or fails to meet other requirements in the relevant legislation.

Even if you meet all of these tests, you won’t qualify unless you get the Secretary of the Department of Homeland Security to approve you  *in advance*– at his/her discretion.

Spouses of Canadian Retirees may also qualify if they meet the same requirements, other than (D) above.

As you can see from the above, there are stringent requirements that must be met, in order to potentially benefit from these proposed rules.

Canadians who might wish to take advantage of the Canadian Snowbird Act, if and when enacted, should get advice for their own situation, including:

  • expert US tax advice (including US estate tax and income tax advice), 
  • expert US immigration advice, 
  • expert medical and health insurance coverage advice, including maintaining Canadian provincial health care coverage as well.

As with any new law, there is significant potential for things to “fall through the cracks”.

And don’t forget to register with the U.S. Citizenship and Immigration Services if staying more than 30 days!