Ontario announces Children's Activity Tax Credit

On September 6, the McGuinty government announced a proposal for a new permanent, refundable* Children's Activity Tax Credit. This provincial tax credit, similar to the Federal Children's Fitness Tax Credit, will provide parents with a break on their taxes when they enrol their children in sport and recreation programs.

Many of the eligibility requirements, such as age of participants and duration of programs, will be the same as those for the Federal credit. So, programs that are currently eligible for the federal credit will automatically be eligible for the new provincial credit. However, there are some important differences with the Ontario credit. The government proposes to:

⇒ Make the tax credit refundable, meaning that more low-income families will benefit
⇒ Make more non-fitness programs eligible, such as visual arts and activities focused on wilderness or the natural environment

PRO is pleased that the government has expanded the range of eligible programs to include more types of recreational activities. This signifies that the government understands the benefits and importance of all types of recreation in healthy child development. In addition, PRO has been advocating for measures that will help make recreation more affordable low-income Ontarians, such as a refundable activity credit.

"Parks and Recreation Ontario is pleased that the McGuinty government is taking steps to encourage Ontarians to enrol their children in sport and recreation activities," says PRO President Liz Weaver. "Children that participate in good quality sport and recreation programs are healthier, do better at school, have higher self esteem and are more likely to be active throughout their lives. By making this new Tax Credit refundable and retroactive to January 1, 2010, and by expanding the range of recreation programs that are eligible, more Ontarians will benefit."

Under the proposed tax credit, parents would be able to claim up to $500 of eligible expenses per child and would receive a refundable tax credit worth up to $50 per child under 16 years of age, or up to $100 for a child with a disability under age 18.

The province will introduce legislation this fall, which will include details about the credit. PRO will continue to monitor the legislation and provide members with information pertaining to implementation.

* A refundable tax credit can generate a payment to a taxpayer, even when no income tax has been paid.


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