Child Tax Credit to Include Gym Memberships
The proposed tax credit for children 16 yrs. and under will include fitness club memberships. This provision was not at all certain as, following the announcement of the proposed credit, many organizations began an intense lobbying campaign to be included. This included organizations with no particular fitness component but with heavy political clout. A select committee was appointed to decide on who would be included. The following news release is what they have decided. The link provided will take you to the full report.
Attached is the CNW press release regarding the Children’s Fitness Tax Credit. You’ll notice at the bottom of the release there is a link to the full report – points of interest include the eligibility of membership fees and raising the age limit to 21 for children with disabilities.
FULL REPORT
Federal Children’s Fitness Tax Credit Will Get Kids Active
OTTAWA, Oct. 26 /CNW Telbec/ - The Expert Panel for the Children’s
Fitness Tax Credit, appointed in July by Canada’s New Government, today
released its recommendations to the Honourable Jim Flaherty, Minister of
Finance.
“This tax credit helps parents help their kids,” said Dr. Kellie Leitch,
Chair of the Expert Panel. “By making physical activities more accessible to
families, this moves kids off the couch - and gets them playing, dancing, and
moving around. And that will help transform children’s lives.”
The Expert Panel was asked to advise the Minister of Finance on the
definition of programs that should be eligible for the Children’s Fitness Tax
Credit. Proposed in Budget 2006, the credit would allow parents to claim
eligible fees of up to $500 per child per year. The Expert Panel was chaired
by Dr. Kellie Leitch, and included Mr. David Bassett of Scotia McLeod, and
Mr. Michael Weil from YMCA Canada.
Key recommendations from the Expert Panel include:
- To qualify for the tax credit, programs must include a physical
activity that contributes to cardio-respiratory endurance;
- Qualifying programs must include a minimum of one session per week for
eight weeks. For a camp to be eligible, a minimum duration of one week
(equating to five consecutive calendar days) is required;
- Each session of qualifying programs must include:
- A minimum of 30 minutes of sustained moderate to vigorous
physical activity for children under ten; or
- A minimum of 60 minutes of sustained moderate to vigorous
physical activity for children ten and over.
- In the case of children with disabilities, the tax credit would apply
to children up to and including age 21; and
- Parents with children with disabilities would be able to claim eligible
fees and other specified expenses related to participation up to $1,000
per child per year.
“All along, we were well aware that our recommendations would impact and
shape the design of physical activity programs in Canada,” said Dr. Leitch.
“Based on our recommendations, programs will become more likely to help get
kids hooked on being active.”
The Expert Panel heard from dozens of groups in communities across Canada
that were extremely positive about the potential impact this tax credit could
have in reducing obesity, and encouraging children to live healthier, more
active lives.
“This is an important step toward making Canada a world leader when it
comes to children’s fitness and health,” said Dr. Leitch.
Each member of the Expert Panel was paid a salary of $1 for their work.
The Expert Panel’s full report can be found in English at www.fin.gc.ca/activty/pubs/ctc_e.html or in French at www.fin.gc.ca/activty/pubs/ctc_f.html.
For further information: Pierre Leduc, Temple Scott Associates, (613) 241-6000 Ext. 235l
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