The Existing Children's Fitness Tax Credit

The Children's Fitness Tax Credit

On October 9, 2014, Prime Minister Stephen Harper announced the Government’s intention to double the Children’s Fitness Tax Credit (CFTC) and make it refundable. The maximum amount of expenses that may be claimed under the credit will be doubled from its current limit to $1,000 for the 2014 tax year and subsequent tax years, and the credit will be made refundable effective for the 2015 and subsequent tax years.

The CFTC was introduced by the Government in Budget 2006 to help promote physical fitness among children by making it more affordable for Canadian families to register their kids in fitness activities. When fully implemented, the proposed enhancements to the CFTC will fulfill a commitment made by our Government in 2011. The enhancements will deliver additional tax relief to about 850,000 families who enrol their children in eligible fitness activities.

Parents will be able to take advantage of the new $1,000 maximum limit in the spring of 2015 when they file their tax returns for 2014. The credit will be made refundable as of the 2015 tax year, increasing benefits to low-income families claiming it for that year and subsequent years. Not only was Prime Minister Harper’s 2011 election promise to double the existing CFTC, but to also introduce an Adult Fitness Tax Credit (AFTC). This is excellent news for the Canadian fitness industry as it is a step forward to implementing an AFTC.

We have high hopes that Prime Minister Harper will honour the completion of his election promise. Fitness Industry Council of Canada (FIC) made it our main initiative to implement an Adult Fitness Tax Credit. Thus, we will be doing all we can in order to advocate and lobby the Government. In order to do so, we need your support. FIC operates solely by contributions by Canadian fitness clubs and sponsors. With your support, we can make the Adult Fitness Tax Credit a reality. Please keep in mind that research shows that with an AFTC, almost one million more Canadians will become physically active, which is great news not only for fitness clubs, but also for the health of the Nation.

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