The Healthy Living Tax Incentive is a tax credit of up to $500 per child. It is intended to help with the cost of registering children and youth in sport or recreation activities that offer health benefits.
Young people aged 17 and under who are registered in an approved organized sport, physical recreation, or physical activity program qualify for the tax credit.
Please note: The expansion of the Healthy Living Tax Incentive to cover expenses for recreation registration for adults has been deferred for 2013. The program for young people, aged 17 and under, remains unchanged.
What is the Healthy Living Incentive?
The tax credit, or healthy living incentive, provides an allowable tax credit of up to $500 per child to help with the cost of registering children and youth in sport or recreation activities that offer health benefits.
Who is eligible?
Children and youth aged 17 and under who are registered in an approved organized sport, physical recreation, or physical activity program will qualify for the tax credit. Only receipts from those groups who have registered with Department of Health and Wellness are eligible.
How do sport and recreation organizations become registered?
Sport, recreation, municipal organizations, and member schools of the NSSAF (Nova Scotia School Athletic Federation), must register online with Nova Scotia Health Promotion for the members to benefit from the tax credit. Applications can be found here.
Within two weeks of submitting an application the organization will be notified as to whether or not their group meets the necessary criteria. Once an organization has been registered it will be listed on the website. Organizations must register by December 31 to be eligible for that tax year.
What is the registration criteria?
Programs that qualify to be registered include any organized sport, physical recreation, or physical activity program that is offered to the public by the Government of Canada, or the Province of Nova Scotia. A private or not-for-profit organization registered to do business in Nova Scotia is also eligible for registration. This means everything from swimming lessons to dance classes to ski memberships.
What do parents/guardians need to know?
Please note: The tax credit will only apply to those organizations who are registered with Department of Health and Wellness so please encourage your group, not-for-profit, or organization to register on line before December 31.
Parents/guardians MUST keep their registration tax receipt in order to claim the credit on their tax return. A new line has been added to the provincial tax return form.
How much can I expect to be deducted on my income tax?
This is a tax credit not a tax rebate. A tax credit is a reduction against income tax that would otherwise be due. A parent/guardian who claims the maximum of $500.00 per child, can expect a tax reduction of $43.95 per child. This amount will be deducted from your provincial income tax, much the same way your charitable donations are deducted.