Canadian Revenue Highlights Arts Tax Credit

by Mike Godfrey, Tax-News.com, Washington

19 January 2012

Canada's Revenue Minister has been highlighting the benefits of a new tax credit for parents, designed to promote the involvement of children in the arts.

The Children's Art Tax Credit was passed in the 2011 federal budget. It allows parents to claim for money spent on programmes for their children that focus on fine arts, music, performing arts, outdoor wilderness training, learning a language, studying a culture, and tutoring, among others. A maximum CAD500 (USD493) can be claimed toward the cost of such activities. The Canada Revenue Agency (CRA) says this could save parents as much as CAD75 per child at tax time.

Promoting the new tax break was Revenue Minister Gail Shea, who visited the Art Gallery of Greater Victoria to highlight its benefits. She said: "Parents whose children participate in paid artistic, cultural, recreational, and developmental programs will now enjoy the same benefit as parents whose children participate in paid programs of physical activity."

"The children's arts tax credit is a step on the road to instilling in our children a love for the arts. I'm pleased that this credit will help families from Victoria enroll their kids in great local arts development programs," Shea concluded.

John Tupper, Director of the Art Gallery of Greater Victoria, added: "Studies have shown that arts education help youth develop skills in critical thinking. This will be increasingly important as Canada develops its creative economy".

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