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Helping Children Be Healthy And Active

McGuinty Government Introducing Children's Activity Tax Credit

Office of the Premier

Ontario is proposing a new permanent, refundable tax credit that would make it a little easier for parents to get their children involved in sports, arts and other activities.

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. This credit would apply to any eligible expenses incurred on or after January 1, 2010, meaning parents would receive a credit after they file their 2010 tax returns.

Quick Facts

  • Refundable tax credits 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.

Additional Resources

Quotes

“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.”

Dalton McGuinty

Premier of Ontario

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Government Home and Community Taxes and Benefits Children and Youth People with Disabilities