Conservatives promise to bring back children’s fitness, arts tax credits

The Conservative Party of Canada is promising to re-introduce both a children’s fitness tax credit and a children’s arts and learning credit, should it form the next federal government.

Both the Children’s Fitness Tax Credit and the Children’s Arts Tax Credit were eliminated by the Liberal government as part of the 2016 federal budget in favour of a tax cut for middle-class Canadians and other measures directed to families.

The Tories say that the Children’s Fitness Tax Credit would allow families to claim up to $1,000 per child, per year, for expenses incurred in relation to fitness or sports activities.

Parents would receive a 15% refundable tax credit for eligible expenses for children who were under the age of 16 at the beginning the tax year. Parents claiming the full credit would realize $150 of tax savings per year.

Parents of children living with disability would be able to claim an additional $500 per child, and the age eligibility ceiling would be 18 years old. Parents claiming the full credit would realize $225 of tax savings per year.

The Children’s Arts and Learning Tax Credit would allow parents to claim $500 per child for arts-related expenses or other extracurricular activities. Parents would receive a 15% refundable tax credit on eligible expenses. Parents claiming the full credit would realize $75 of tax savings.

Parents of children living with disability would be able to claim an additional $500 per child, and the age eligibility ceiling would be 18 years old. Parents claiming the full credit would realize $150 of tax savings.

According to the parliamentary budget office (PBO), the Children’s Fitness Tax Credit would cost $60 million in 2019-20, $241 million in 2020-21, and $239 in 2021-22. The Children’s Arts and Learning Tax Credit would cost $14 million in 2019-20, $56 million in 2020-21, and 2021-22, the PBO said.

On Friday, the Conservatives indicated they would re-introduce a public transit tax credit, eliminated by the Liberals in 2017, should they form the next government. The children’s arts and fitness tax credits as well as the public transit tax credit were first introduced under the Harper Conservative government.

Rudy Mezzetta

Rudy is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on tax, estate planning, industry news and more since 2005. Reach him at rudy@newcom.ca.