Published | Category: Income tax - individuals

Introduction of a Refundable Tax Credit for Youth Activities

A refundable tax credit for the activities of children from families whose income does not exceed $130,000 is being implemented as of the 2013 taxation year. The tax credit will be increased over five years.

Determination of the tax credit

An individual, other than an excluded individual, who resides in Québec at the end of December 31 of a particular taxation year may claim, for that year, a refundable tax credit equal to 20% of the total of all amounts, each of which is, with respect to an eligible child of the individual for the year, the lower of the following amounts:

  • the applicable annual limit of the eligible expenses for youth activities;
  • the total of the eligible expenses paid in the year by the individual or by the individual's eligible spouse for the year.

The eligible spouse of an individual for a particular taxation year is the person who is the individual’s eligible spouse for the year for the purpose of the transfer to the spouse of the unused portion of non-refundable tax credits.

The eligible child of an individual is any child of the individual who, at the beginning of a particular taxation year, is at least 5 but not yet 16 years of age, or not yet 18 years of age if the child has a severe and prolonged impairment in mental or physical functions.

An excluded individual for a particular taxation year is one of the following persons:

  • an individual whose family income for the year exceeds $130,000 (this amount will be automatically indexed each year as of January 1, 2014, according to the usual rules);
  • a person who is exempt from tax for the year under section 982 or 983 of the Taxation Act or subparagraph (a), (b), (c), (d) or (f) of the first paragraph of section 96 of the Tax Administration Act, or who is the eligible spouse for the year of such a person.

The family income of an individual for a particular taxation year is the income of the individual for the year and, as applicable, that of the individual’s eligible spouse for the year.

Annual limit on eligible expenses for youth activities

The annual limit on eligible expenses for youth activities is set at $100 per child for the 2013 taxation year. This limit increases gradually by $100 a year to $500 per child as of the 2017 taxation year.

In the case of a child with a severe and prolonged impairment in mental or physical functions, the applicable limit is doubled to reflect the special considerations involved in calculating eligible expenses paid with respect to such a child.

Eligible expenses

Eligible expenses refers to any amount paid by an individual in a taxation year to a person (other than a person who, at the time of the payment, was the individual's spouse or was under 18 years of age) or to a partnership, to the extent that the amount is attributable to the cost of registration or membership of the child in a recognized program of activities offered by the person or partnership.

If, in 2013, the child has a severe and prolonged impairment in mental or physical functions, an additional amount not exceeding $100 may be claimed provided the cost of registration or membership in a recognized program of activities was at least $25. The amounts will be adjusted to reflect the increase in the amount in the tax credit in subsequent years. 

Recognized programs of activities

A recognized program of activities is any ongoing program that is not part of the school's curriculum. The program must be of a duration of eight or more consecutive weeks, or of five or more consecutive days in the case of a children's camp. Either all or substantially all the activities offered, or the majority of the activities offered, must include a significant amount of

  • physical activity, or
  • artistic, cultural, recreational or developmental activity.

Application date

The refundable tax credit for youth activities applies to amounts paid after December 31, 2012, for the registration or membership of an eligible child in a recognized program of activities, provided the amounts are attributable to activities that take place after that date.

For further information, see page H.15 in the Budget Plan, published by the Ministère des Finances et de l’Économie.

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