On Thursday November 4, 2021, the Government of Ontario officially announced it's plan for a staycation tax credit. The program named the "Ontario Staycation Tax Credit", was announced as part of the Ford Government's Fall Economic Plan.
About the program.
So, what does that mean for travellers? Anyone planning a vacation or a getawat within Ontario in the 2022 tax year could be eligible under the new program.
How does it work?
Ontarians would receive a 20 per cent personal income tax credit on eligible accommodations between January 1 and December 31, up to a maximum of $1,000 for an individual and $2,000 for a family, for a maximum credit of $200 or $400 respectively.
How do I apply?
Residents of Ontario could apply for this refundable credit when they file their 2022 personal tax returns and benefit even if they do not owe any tax.
What are the eligible accommodation expense?
According to the Ontario Government, some of the eligible accommodation expenes are:
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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
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For a stay between Jan. 1 and Dec. 31, 2022
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Incurred for leisure
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Paid by the Ontario tax filer, their spouse or common-law partner, or theur eligible child, as set out on a detailed receipt
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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
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Subject to Goods and Services Tax (GST/Harminonized Sales Tax (HST), as set out on a detailed receipt
The Government said this tax credit will help tourism and hospitality sector recover and encourage Ontarians to explore the province. It would provide an estimated $270 million to support over one-and-a-half million families to further discover Ontario.
What do you think about the new Ontario Staycation Tax Credit Program?
Source: https://www.cp24.com/news/ontario-announces-plan-for-staycation-tax-credit-and-here-s-how-it-works-1.5652600