Tax Credit for Transit Passes Will Reduce Cost of Public Transit
VANCOUVER – Conservative leader Stephen Harper today announced that a Conservative government will introduce a tax credit for monthly transit passes, which will reduce federal income taxes and the cost of riding public transit.
The 16 per cent federal tax credit is part of a “Made in Canada” clean-air policy to increase transit ridership and reduce traffic congestion, smog and greenhouse gases.
“Our tax credit for transit users will put hard-earned dollars back in the pockets of Canadians, and at the same time help our environment,” said Harper. “This will be a real incentive that encourages more people to take public transit which, in turn, means fewer cars on the roads and cleaner air.”
The tax credit will be worth 16 per cent of the actual, receipted amount spent on public transit. The average commuter will save $153 annually. Specific annual cost savings include the following:
- Up to $250 for a TransLink commuter (Greater Vancouver);
- $190 for a TTC Metropass holder (Toronto);
- Up to $386 for an AMT TRAM card (Montreal); and
- Depending on route, as much as $500 for a GO Transit rider (Greater Toronto Area).
(The attached backgrounder lists savings for more than 40 different communities in all provinces and two territories.)
Couples and families will save even more. The family-friendly policy includes child, student and senior transit passes. Parents can claim the tax credit on behalf of dependent children, and one spouse can claim the credit on behalf of another.
The program will be funded by re-directing tax dollars that the current government intends to hand over to foreign countries to buy credits for greenhouse gas emissions.
“Instead of sending your tax dollars overseas, we plan to use them here to provide incentives for Canadians,” Harper said. “This is a real incentive to take public transit, which will mean fewer cars on the roads and cleaner air for all. It’s a Made in Canada program to protect the environment and fight traffic congestion.”
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For further information: Conservative Party Press Office (613) 755-2191
