Home Heating Rebate Program Expanded for 2008 To alleviate the financial pressure rising fuel and heating costs are placing on lower income households throughout the province, the Williams Government has introduced an expanded Home Heating Rebate Program for 2008, the Honourable Tom Marshall, Minister of Finance and President of Treasury Board, announced today. Minister Marshall said the 2008 program will again apply to the use of home heating fuel, propane, electricity and wood. The maximum rebate for home heating fuel users will increase from $200 to $300 over last year, and will increase to $400 for households in coastal Labrador. Electricity and wood users will again receive a maximum rebate of $200.
The minister said the income thresholds have also increased over last
year�s program. Under the new program, families with a household income
up to $35,000 will receive a full rebate. The rebate will gradually
decrease as income levels rise to $40,000, with no eligible family
receiving less than $100. Changes to the thresholds significantly
increase the number of eligible households from 68,000 to 75,000. The
program also accommodates changes in marital status due to legal
separation or divorce. The cost of this year�s program is estimated to
be $17.2 million, up from approximately $11 million last year. "We understand the burden high home-heating costs are placing on the
people of this province, particularly those who can least afford it,"
said minister Marshall. "The price of home heating fuel has jumped
approximately 20 per cent from last year and we have tailored the rebate
program to respond to these increases. Other heating sources such as
electricity have not experienced similar increases in cost, but users
will continue to benefit under this year�s program." "Government has analyzed the increases in the prices of home-heating
products and the provincial portion of the HST eligible households are
expected to pay. It is expected that the 2008 rebates will more than
offset the HST. While complete removal of the HST would benefit all
families in the province, it does not target those who need it the most.
It would subsidize a large number of people who do not need the help,
and we feel that money would be best directed towards other areas such
as health care, education or poverty reduction," said Minister Marshall. Minister Marshall said government is continuously working to reduce
the cost of living for all Newfoundlanders and Labradorians,
particularly senior citizens and low income earners. "In Budget 2007, we made the largest cut in personal income tax in
provincial history, giving $160 million back to the people. We increased
the thresholds for both the senior�s and low income benefits, enabling
over 11,000 more people to avail of these benefits. Enhancements to the
Provincial Drug Program will mean access to thousands more
Newfoundlanders and Labradorians," said Minister Marshall. "Expanding
this rebate program is yet another example of government putting money
back into pockets of Newfoundlanders and Labradorians, particularly
seniors and lower income earners." "Our province finds itself in a unique financial situation," said
Minister Marshall. "After 50 years of reporting deficits, we are
reporting surpluses. Prosperity tomorrow truly hinges on how we use this
money today. Making responsible fiscal decisions, addressing our massive
debt and continuing our strategic investments will lead to a strong and
vibrant economy and ensure sustainable funding is available to properly
assist those Newfoundlanders and Labradorian�s who need help the most."
-30- Media contact: Bill Hickey
BACKGROUNDER Home Heating Rebate
The Home Heating Rebate is available to residents of the province whose household income is $40,000 or less, regardless of the primary source of heat. Household income is the net income of the applicant plus, if applicable, the income of that applicant�s spouse or partner. The maximum rebate amount is $200 where the primary heat source is electricity, wood or other; $300 for heating oil, stove oil or propane; and $400 for Coastal Labrador communities. Individuals and families with income between $35,000 and $40,000 will receive assistance based on a sliding scale. The minimum rebate an eligible individual or family will receive is $100. Example of Sliding Scale
Eligible individuals or families must apply for the rebate. Applicants must provide an invoice for either an electricity or heating fuel purchase, depending on which is the primary heat source, from November 2007 to April 30, 2008. Only one person per household may apply for the rebate. The deadline for submitting applications is April 30, 2008. Applicants should allow six to eight weeks for processing. Application forms are available through:
Applications must be sent to: Home Heating Rebate For further information on the home heating rebate, please contact
the Department of Finance at 2007 12 06 1:45 p.m.
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