After months and months of talking about it, the Ontario government has finally approved a “stay at home” travel tax credit to spur provincial tourism.
Ontario residents who take a trip within the province in the 2022 tax year could be eligible for rebates under the new “Ontario Staycation Tax Credit” program, which was announced late this week as part of Premier Doug Ford’s Fall Economic Statement.
Provincial residents will be eligible for a 20% personal income tax credit on eligible accommodation between Jan. 1 and Dec. 31, up to a maximum of $1,000 for an individual and $2,000 for a family. That means a maximum credit of $200 for an individual or $400 for a family.
Port Dover, Ontario. JIM BYERS PHOTO
Officials say an eligible accommodation expense would have to be:
- 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
- For a stay between Jan. 1 and Dec. 31 of 2022
- Incurred for leisure
- Paid by the Ontario tax filer, their spouse or common-law partner, or their eligible child, as set out on a detailed receipt
- 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
- Subject to Goods and Services Tax (GST)/Harmonized Sales Tax (HST), as set out on a detailed receipt.
The credit would provide an estimated $270 million to help more than 1.5 million families to further discover Ontario, according to Ontario government officials.
(If you’re looking for Ontario inspiration, look no further than my e-book, “Ontario Escapes: 19 Great Places to Visit Right Now,” available on Apple Books for just $4.99. I’ve detailed great places to check out all across the province, including great hiking spots, waterfalls and surprising destinations such as Grey County, Gananoque, Millbrook, Port Dover and Stratford.)
“It’s … a 20% tax credit that puts money back in the pockets of Ontario travellers and families when they choose to travel right here at home,” said Finance Minister Peter Bethlenfalvy.
Christopher Bloore, president and CEO of the Tourism Industry Association of Ontario, applauded the move.
“It’s up to us now to convince Ontarians to book that next vacation in Ontario, to stay a little longer, visit an extra attraction, eat out, book a tour and to spend that little bit more to support all sectors of the tourism industry,” he said in an email. “This will be an important part of the jigsaw on our recovery to encourage people to rediscover Ontario.”
Ontario NDP Leader Andrea Horwath said it’s not nearly enough.
“This thing that is in the update today – about $200 is what it comes out to – that’s really not going to help families a great deal,” she said.
In a comment published in the Toronto Star, the Canadian Federation of Independent Business called the tax credit “a positive step.” But the group said “much more is needed to spur small business recovery.”
