The Ontario government’s proposed new, permanent, refundable tax credit would make it less expensive for parents to get their children involved in Sports, arts, and other activities, John Wilkinson, MPP, Perth-Wellington announced Sept. 8.
“Every parent wants their child to be healthy and active. We know that healthy, active children become healthy, active adults,” said Wilkinson. “As we encourage our children to participate in extracurricular activities it is important to help families who bear the cost. When children benefit while having fun participating in their favourite Sports or arts related activities we all benefit.”
He added, “I would like to recognize the provincial leadership shown by Wellington North council. Recently they passed a resolution calling on our government to create this new tax credit.”
Under the proposed tax credit, parents would be able to claim up to $500 of eligible expenses per child.
They would receive a refundable tax credit worth up to $50 per child, or up to $100 for a child with a disability. The tax credit could benefit over 1.8 million children.
Ontario’s tax credit would build on a similar federal government program. However, Ontario’s tax credit would be broader in scope – it would apply to more than just Sports activities – and it would be a refundable credit that benefits all families, including those with low incomes.
The province intends to introduce legislation this fall, which will provide details about the new tax credit. The credit would apply to any eligible expenses incurred on or after Jan. 1, 2010, meaning parents would receive a credit after they file their 2010 tax returns.
“This new measure would help children get involved in activities where they can enjoy themselves, feel a sense of accomplishment, and make friends. At the same time, we want to make it easier for parents to provide those opportunities by saving them money and helping their budget,” said Premier Dalton McGuinty.
Refundable tax credits help to ensure that low-income parents – who pay little or no tax – would also benefit.
Physical activities that are eligible for the federal children’s fitness tax credit would automatically be eligible for the Ontario Children’s activity tax credit.
Eligible non-physical extracurricular activities would have to be supervised, suitable for children and not part of a school’s curriculum.
