This bill changes the Taxation Act, 2007, to give a non-refundable tax credit of up to $1,000 to residents of Ontario who take part in children’s activities outside of school. The credit will start after December 31, 2024, and can be used to reduce the amount of provincial tax owed. The government can also create rules for how to prove eligibility, such as what receipts or information a person might need to provide.
If you live in Ontario and have children who participate in outside activities such as sports, music lessons, or other extracurriculars, you may qualify for a tax credit. This could lower the amount of income tax you owe by up to $1,000. The credit is non-refundable, which means it can only reduce your tax to zero — it cannot give you a refund. The bill applies to activities started after December 31, 2024.
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There is no official estimate of how much the government expects to spend or save due to this bill, as it depends on how many people claim the credit.
Supporters say the bill encourages families to keep children active and involved in healthy activities outside of school. They believe it will make outside activities more affordable for some families and support the development and well-being of young people.
Opponents argue the bill might mainly benefit families who already have the means to pay for extracurricular activities. They also note that providing a tax credit may not significantly increase participation among lower-income families, who may face other barriers. Critics also point out that there is no clear estimate of how much the government will spend on this program, and some worry about the added complexity for administering the tax credit.