Relief for young families, seniors and homeowners

QUEBEC Young families, seniors and homeowners are among the Quebecers who will benefit from tax breaks in Tuesday’s budget.

Key tax measures announced by Finance Minister Carlos Leitao include:

FAMILIES

Some parents will see a bigger tax break on child-care expenses.

Those who use non-subsidized daycare pay for the service but can obtain a refundable tax credit for the expense. That gives them a break on their income taxes. This credit will be increased.

Under the budget, a family with a combined $30,000 income will gain $375 per year, while one with income of $75,000 will gain $300. Couples with combined income of $160,000 will save $130.

The government also announced the limits applicable to child-care expenses will be indexed as of 2019, meaning the amount parents get back will rise annually.

These measures will cost the government $159 million over five years.

FIRST-TIME HOMEBUYERS

A new tax credit is being introduced for first-time homebuyers. The government says it will help defray the costs of such expenses as inspection and notary fees.

The tax credit, which applies to housing units purchased after Jan. 1, 2018, will give Quebecer homebuyers a break of up to $750 on tax returns.

The measure will cost $140 million over five years.

SENIORS

Some people who provide assistance to seniors that live in their own homes will get a break. The government is broadening eligibility requirements for a tax credit to cover caregivers who don’t live with the person being helped. These informal caregivers will be entitled to up to $533 per year.

Quebec is also reducing the number of hours of services caregivers must provide to qualify for a credit.

Under the old system, the credit for volunteer respite only applied to people providing care for more than 400 hours a year, with a maximum credit of up to $500. Under the new system, volunteers can get tax assistance starting at 200 hours. The maximum credits: $250 for 200 hours of service; $500 for 300 hours; and $750 for 400 hours or more.

In addition, the government is changing rules for a refundable tax credit aimed at seniors who spend money adapting their homes — by installing a walk-in tub, for example — so they can continue to live independently.

Today, the tax credit is equal to 20 per cent of the amount over $500. Under new rules, the cut-off will be $250. New items will also be eligible for the tax credit.

The measures will cost $103 million.

HOME RENOVATIONS

Réno-Vert, a tax credit for homeowners who renovate their homes to make them more energy efficient, was supposed to end this year. The government is extending the program to March 31, 2019.

The maximum amount of the tax credit is $10,000.