Tax credit measures to assist persons with disabilities

Finance Minister Joan Marie Aylward today announced an increase in the tax credit amounts for persons with disabilities provided by the Income Tax Act.

Effective for the 2003 tax year, the disability tax credit amount will be increased to $5,000 from $4,233.

In addition, a new provincial non-refundable disability tax credit supplement will be introduced. Mentally or physically infirm persons under the age of 18 will be eligible for a supplement of $2,353, which can be transferred to a supporting person if the taxpayer has insufficient income to fully utilize the credit.

"These measures represent $1 million in tax savings for the disabled in Newfoundland and Labrador," said Minister Aylward. "This is a significant step in lowering the tax burden for the disabled, who have additional medical, housing and transportation needs and therefore greater costs of living."

Eligibility for the Disability Tax Credit and Supplement is determined based upon criteria established under the federal Income Tax Act administered by the Canada Customs and Revenue Agency.

Media contact: Josephine Cheeseman, Communications, (709) 729-0329.

Government has announced an increase in the tax credit amounts for persons with disabilities provided by the Income Tax Act.

Currently, disabled persons are provided with a non-refundable tax credit amount of $4,233. Effective for the 2003 tax year, the disability tax credit amount will be increased to $5,000.

In addition, a new provincial non-refundable disability tax credit supplement will be introduced. Mentally or physically infirm persons under the age of 18 will be eligible for a supplement of $2,353. This supplement is transferrable to a supporting person if the taxpayer has insufficient income to fully utilize the credits. The new supplement will complement an existing non-refundable tax credit provided for a caregiver who cares for a dependant mentally or physically infirm person over 18 years of age.

Eligibility for the Disability Tax Credit and Supplement is determined based upon criteria established under the federal Income Tax Act administered by the Canada Customs and Revenue Agency.

These measures represent $1 million in tax savings for the disabled in the province. The disabled typically have additional medical, housing and transportation needs and therefore greater costs of living than the general population.

2003 03 27                                        3:45 p.m.