Construction Workers Get Travel Tax Break

Summary#

This bill amends the federal Income Tax Act to let certain construction workers deduct travel costs. It applies to “duly qualified tradespersons” and “indentured apprentices” who travel to job sites at least 80 km from their ordinary home. It takes effect for the 2022 and later tax years (Bill s. 2).

• Allows a deduction for amounts spent traveling to and from a distant construction job site (Bill s. 1, ITA 8(1)(q.1)).
• Only applies if the worker’s employment contract requires them to pay these costs (Bill s. 1).
• No deduction if the worker received a non-taxable travel allowance for those costs (Bill s. 1).
• No double-claims: the same expenses cannot be claimed under any other deduction or credit (Bill s. 1).
• The job site must be at least 80 km from the worker’s ordinary residence (Bill s. 1).
• Applies starting with the 2022 tax year (Bill s. 2).

What it means for you#

• Households
  • If you or a family member is a qualified tradesperson or indentured apprentice working in construction, you may deduct what you spent to travel to and from a job site 80 km or more from your ordinary home, for 2022 and later years (Bill s. 1–2).
  • You must have been required by your employment contract to pay these travel expenses yourself (Bill s. 1).
  • You cannot claim the deduction if you received a non-taxable allowance for these travel costs, or if you claim the same costs under another tax provision (Bill s. 1).
  • The deduction covers travel only. The bill does not mention meals or lodging (Bill s. 1).
• Workers
  • Eligible workers can reduce their taxable income by the amount of qualifying travel costs, which may lower income tax owed (Bill s. 1).
  • The bill uses the terms “duly qualified tradesperson,” “indentured apprentice,” and “construction activity” without definitions here; how these terms are interpreted will affect who qualifies (Bill s. 1).
• Businesses
  • No direct new filings or payments for employers. However, workers qualify only if their contracts require them to pay their own travel costs (Bill s. 1).
• Local governments
  • No direct change identified in the bill text.

Expenses#

Estimated net cost: Data unavailable.

• No fiscal note or official costing identified. Data unavailable.
• The bill creates a federal income tax deduction, which would reduce taxable income for eligible workers. The resulting revenue loss is not quantified. Data unavailable.
• No direct spending or appropriations are included in the bill text.

Proponents' View#

• Helps workers accept jobs far from home by reducing after-tax cost of travel to distant construction sites (80 km or more) (Bill s. 1).
• Targets relief to tradespersons and indentured apprentices in construction who must cover their own travel under their contracts (Bill s. 1).
• Prevents double benefits by disallowing the deduction if a non-taxable allowance was received or if the expense is claimed elsewhere (Bill s. 1).
• Applies starting in 2022, which could provide relief for past tax years once in force (Bill s. 2).
• Uses a clear distance threshold (80 km) to set eligibility (Bill s. 1).

Opponents' View#

• Reduces federal tax revenue by allowing new deductions; no official estimate of the fiscal impact is provided (Data unavailable).
• Limits eligibility to certain workers and sectors, which could be seen as unequal treatment compared to other workers with long-distance travel (Bill s. 1).
• Leaves key terms (“duly qualified tradesperson,” “indentured apprentice,” “construction activity,” “ordinary place of residence”) undefined in the bill text, which may cause disputes or administrative complexity (Bill s. 1).
• Covers travel only, not meals or lodging, which may not address the full cost of working far from home (Bill s. 1).
• The 80 km cutoff may exclude workers with significant travel under that threshold, creating a cliff effect (Bill s. 1).