The Ontario government recently announced their plan for a new tax credit that will incentivize people to plan a getaway in Ontario.
As part of the Fall Economic statement released in early November, the “Ontario Staycation Tax Credit” will allow eligible Ontarians who are planning a getaway within the province in the 2022 tax year, a little bit of a tax break.
Ontarians will get a 20 percent personal income tax credit on eligible accommodation 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.
“The Ontario Staycation Tax Credit is a great incentive to encourage families to explore everything that Ontario’s tourism sector has to offer,” said Greg Rickford, Member of Provincial Parliament for Kenora-Rainy River.
“Northwestern Ontario has a broad array of tourism options, whether it be a fishing lodge, campground, or a bed and breakfast style accommodation, and I hope Ontarians will consider the tax credit when making their summer travel plans.”
Eligible Ontarians could apply for the refundable credit when they file their 2022 personal tax returns, even if they do not owe any tax.
In a later interview with Q104, Christine Elliott, Deputy Premier of Ontario and Minister of Health for the province, talked about the idea of “returning to normal” this summer, “I have been to Kenora several times and I’d like to return; I’d encourage anybody else in Ontario to come and visit.”
“One of the things we have introduced is the Staycation tax credit for the people of Ontario. It's to encourage them to help many of the tourist businesses and events, to visit parts of Ontario that they haven't seen before,” she added.
She concluded, “This is a great value for people and it will really help businesses a lot.”
According to the government, an eligible accommodation expense would have to be:
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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 January 1 and December 31 of 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 their 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)/Harmonized Sales Tax (HST), as set out on a detailed receipt.
According to the provincial government, this tax credit will help boost the tourism sector following the COVID-19 pandemic while also helping provide an estimated $270 million in support to over 1.5 million families throughout Ontario.