Prime Minister STEPHEN HARPER announces intention to double the children’s fitness tax credit
This week, Prime Minister Stephen Harper announced the Conservative Government’s intention to double the Children’s Fitness Tax Credit (CFTC) and make it refundable. The maximum amount of expenses that may be claimed under the credit will be doubled from its current limit to $1,000 for the 2014 tax year and subsequent tax years, and the credit will be made refundable effective for the 2015 and subsequent tax years.
The CFTC was introduced by our Government in Budget 2006 to help promote physical fitness among children by making it more affordable for Canadian families to register their kids in fitness activities. When fully implemented, the proposed enhancements to the CFTC that are being announced today will fulfill a commitment made by our Government in 2011. The enhancements will deliver additional tax relief to about 850,000 families who enrol their children in eligible fitness activities.
Parents will be able to take advantage of the new $1,000 maximum limit in the spring of 2015 when they file their tax returns for 2014. The credit will be made refundable as of the 2015 tax year, increasing benefits to low-income families claiming it for that year and subsequent years.
The CFTC currently provides 1.4 million families with total tax relief of approximately $115 million per year. Claims must be supported by tax receipts. Your child must have been under 16 years of age (or under 18 years of age if eligible for the disability amount) at the beginning of the year in which the eligible fitness expenses were paid. 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. The proposed enhancements to the CFTC are in addition to the many measures that our Government has introduced since 2006 to support Canadian families, including the Universal Child Care Benefit and the Children’s Arts Tax Credit. Families are also major beneficiaries of the substantial tax relief that our Government is providing to all Canadians, such as the 2-percentage-point reduction in the Goods and Services Tax, broad-based personal income tax reductions and the new Tax-Free Savings Account, which helps Canadians meet lifetime savings needs.