Active tax credit

The province says it is encouraging children to get active – physically and mentally – with a proposed permanent, refundable tax credit.

The Ontario government announced Monday the Children’s Activity Tax Credit, which will allow parents to claim up to $500 in eligible expenses for extracurricular activities; they would also receive a refund worth up to $50 per child. The amount is doubled for families with children with disabilities.

"Most of the programming eligible under the federal credit, our program is matching," said MPP Bill Mauro (Thunder Bay-Atikokan). "This particular one is broader in scope than the federal program in so far as it’s going to allow parents to have an eligible expense when it comes to what we consider non-fitness based programming."

That includes art, drama, music and language classes as well as programs like cadets, Girl Guides and tutoring.

Claims under the new program are to be made when filing taxes in the spring and include any expenses since Jan. 1, 2010, Mauro said, adding people on low incomes who pay little or no taxes are still eligible when they file as well.

MPP Michael Gravelle (Lib., Thunder Bay-Superior North) said the province wants to encourage as many families as possible to take advantage of the credit and enroll their children in extracurricular activities. With about 1.8 million children and 1.1 million families in Ontario, the total cost of the program is estimated at $75 million.

"We think it’s certainly an appropriate price in terms of investment in our children," Gravelle said, adding they want to encourage children to participate in as many activities as they can.

"By putting in place this permanent, refundable Children’s Activity Tax Credit program, it’ll make it easier for them to do that," Gravelle said. "Anything we can do to make it easier for families to involve their children in these activities, we think it’s a good thing."

Eligible expenses under the activity tax credit includes registration and membership fees, uniforms, equipment, renting facilities, referees, administration and instruction as well as incidental supplies like trophies.

"We’re keen to make sure we do whatever we can to help parents in terms of deferring some of those costs and also of course encouraging activity amongst our children," said Gravelle. "We think it’s a good time to bring it out and to let the public know about it and encourage people to apply to the program."