This bill establishes a special visitor category for qualifying Canadian retirees to stay in the U.S. for up to 240 days annually and grants them non-resident alien tax status.
Laurel Lee
Representative
FL-15
The Canadian Snowbird Act creates a special visitor status for qualifying Canadian retirees, allowing them to stay in the U.S. for up to 240 days per year while maintaining their Canadian residency. This legislation also ensures that these Canadian visitors are treated as non-resident aliens for U.S. tax purposes, preventing them from being taxed like U.S. residents. The bill aims to simplify entry and tax obligations for long-term seasonal visitors from Canada.
Canadian Snowbird Act Proposes 240-Day U.S. Stay for Retirees, Tax-Free
The aptly named Canadian Snowbird Act creates a new, specific immigration status for Canadian citizens aged 50 and older who want to spend up to 240 days a year in the U.S. To qualify for this extended stay, these retirees must maintain a home north of the border and either own a home here or have a rental agreement covering their entire U.S. visit. Crucially, the bill explicitly bars these visitors from taking any U.S.-based jobs or applying for public assistance, ensuring their stays are purely for leisure and personal residence.
The 240-Day Rule: More Time, Fewer Headaches
Right now, cross-border stays can get complicated, especially for Canadians who want to spend more than six months here. This bill cuts through that complexity by establishing a clear 240-day limit within any 365-day period (Section 2). Think of it as a dedicated lane at the border for folks who just want to escape the harsh Canadian winter. For the retiree who owns a condo in Florida, this means they can stay for about eight months straight without the same immigration scrutiny that might apply if they tried to establish permanent residency.
This new status also provides a major immigration benefit: owning or renting a home here won't be used against them as proof that they intend to permanently abandon their Canadian residence. This is a big deal because, under current rules, buying property in the U.S. can sometimes make it harder to get approved for temporary visitor status, as it might suggest an intent to immigrate.
Tax Status: Non-Resident Means Non-Resident
One of the biggest pain points for Canadians spending long periods in the U.S. is the tax code. If you spend too many days here, the IRS can designate you a “resident alien” for tax purposes, meaning you get taxed like a U.S. person on your worldwide income. The Snowbird Act directly addresses this by amending the Internal Revenue Code (Section 3). It states that any Canadian granted this new visitor status will be treated as a non-resident alien for tax purposes.
What does this mean in plain English? It means that if you’re a qualifying Canadian retiree, you can enjoy your 240 days in the Arizona sun without worrying that the IRS is going to suddenly try to tax your Canadian pension or other foreign earnings. This removes a significant financial hurdle and provides much-needed certainty for those planning extended stays.
The Fine Print: Who Pays and Who Benefits?
While this bill is great news for Canadian retirees and the U.S. businesses that cater to them—think rental agencies, golf courses, and local restaurants in Sun Belt states—it’s important to look at the requirements. The bill requires the retiree to either own a U.S. home or have a signed rental agreement for the duration of their stay (Section 2). This means the bill directly benefits the U.S. real estate and property management sectors by guaranteeing a stream of long-term tenants and buyers.
However, this requirement also creates a financial barrier. Lower-income Canadian seniors who might want to stay longer but can’t afford to own or secure a long-term rental agreement are excluded from the benefits of the 240-day stay. Furthermore, the explicit ban on working means that U.S. service industries will gain customers but not necessarily new workers, and local economies will benefit from spending without having to worry about new competition for local jobs.