The Ontario government has revealed its plans for a staycation tax credit, a report said.
Anyone who plans to travel within the province in the 2022 tax year may qualify under the new “Ontario Staycation Tax Credit” program.
The program was revealed as part of the Ford government’s Fall Economic Statement, tabled on Thursday.
Under the plan, Ontarians will receive an additional 20 percent individual income tax credit on qualified accommodation beginning January 1 until December 31. This is up to a maximum of CA$1,000 for an individual and CA$2,000 for families, with a maximum tax credit of CA$200 or CA$400, respectively.
Ontario residents can apply for the refundable tax credit on their 2022 personal tax returns. They can also benefit even if they don’t have any tax due.
The government declared that this tax credit will aid in helping the hospitality and tourism sectors revive and encourage residents to travel to the province.
According to the government, the credit could bring in approximately $270 million that would help support more than one and a half million families to explore Ontario.
On Thursday, Ontario NDP Chief Andrea Horwath said she believes that the credit for staycations won’t aid families and believes it should have been a $1,000 reimbursement for expenses incurred during a trip to Ontario.
“This thing that is in the update today – about $200 is what it comes out to – that’s really not going to help families a great deal,” Horwath said. “That’s why our $1,000 tax credit idea might be helpful to some families who normally would have taken that vacation right now.”
According to the government, an eligible accommodation expense would have to be:
For a stay of less than a month at an eligible accommodation such as a hotel, motel, resort, lodge, bed-and-breakfast establishment, cottage or campground in Ontario For a stay between Jan. 1 and Dec. 31 of 2022 Incurred for leisure Paid by the Ontario tax filer, their spouse or common-law partner, or their eligible child, as set out on a detailed receipt Not reimbursed to the tax filer, their spouse or common-law partner, or their eligible child, by any person, including by a friend or an employer Subject to Goods and Services Tax (GST)/Harmonized Sales Tax (HST), as set out on a detailed receipt.
Canada – Modern Campground Read More