Ted Falk, MP for Provencher, applauded the announcement of the government’s intention to enhance the Children’s Fitness Tax Credit (CFTC) by increasing the maximum amount that may be claimed under the credit to $1,000 from $500, and by making the credit refundable.
The doubling of the maximum amount will be effective for the 2014 tax year and subsequent tax years, and the credit will be made refundable effective for the 2015 and subsequent tax years.
“Our government continues to support families while encouraging physical fitness for our children,” said MP Falk. ”Making the credit refundable will also increase benefits to low-income families claiming the credit.”
These proposed enhancements, which fulfill a commitment made by the Government in 2011, will provide tax relief for Canadian families of about $25 million in fiscal year 2014-2015, and $35 million annually thereafter. The CFTC currently provides tax relief to 1.4 million families who enrol their children in eligible fitness activities. When fully implemented, these enhancements will deliver additional tax relief to about 850,000 families.
Doubling the CFTC Amount
Our Government proposes to double the amount that can be claimed for the Children’s Fitness Tax Credit to $1,000 from $500, effective for the 2014 and subsequent tax years.
Making the CFTC Refundable
Our Government proposes to make the Children’s Fitness Tax Credit refundable, effective for the 2015 tax year and subsequent tax years. Making the credit refundable will increase benefits to low-income families claiming the credit.
Origin of the Children’s Fitness Tax Credit
The Children’s Fitness Tax Credit was introduced in Budget 2006 by the Honourable Jim Flaherty, who was Minister of Finance at the time. The credit became effective in 2007, and was designed according to the recommendations of the Expert Panel for the Children’s Fitness Tax Credit. In 2011, our Government committed, upon return to budget balance, to doubling the maximum amount that can be claimed under this credit and to making the credit refundable.
Eligibility for the Children’s Fitness Tax Credit
Eligible activities include strenuous games such as hockey or soccer, activities such as golf lessons, horseback riding, sailing, and bowling, as well as others that require a similar level of physical activity. Fees charged for extracurricular programs that take place in school may be eligible.
For more information on the Children’s Fitness Tax Credit please visit the Canada Revenue Agency website.
