2011 Federal Budget—Children’s Arts Tax Credit

The federal Budget tabled on June 6, 2011 included no changes to the income tax measures originally announced in the Budget on March 22, 2011.

The proposed Children’s Arts Tax Credit, except for the definition of eligible activities, is similar to the Children’s Fitness Tax Credit. Where the latter applies to physical activities, the new credit will apply to programs that promote artistic, cultural, recreational, or developmental activities. Parents will be able to claim a 15% non-refundable tax credit based on an amount of up to $500 in eligible expenses paid per child in a taxation year. The credit will be available for the enrolment of a child, under 16 years of age at the beginning of the year, in an eligible program of artistic, cultural, recreational, or developmental activities. For a child under 18 years at the beginning of the year who is eligible for the Disability Tax Credit, the 15% non-refundable tax credit may be claimed on an additional $500 disability supplement amount, when a minimum of $100 is paid for eligible expenses. The new credit will apply to eligible expenses paid in 2011 and subsequent years.

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