Government Expands Home Heating Rebate

Finance
December 15, 2006
Government Expands Home Heating Rebate

Low income earners will receive up to $200 to help offset the cost of heating their homes from all sources this winter through an expanded Home Heating Rebate Program, the Honourable Loyola Sullivan, Minister of Finance, announced today.

The Home Heating Rebate Program is available to individuals and families with a household income of $30,000 or less regardless of whether they heat their homes by home heating fuel, electricity or wood. The program will result in a government investment of $12.8 million, up from the $8.2 million spent on last year�s program.

"Home heating oil costs are lower than they were last year, but we feel it is still necessary for our low-income individuals and families to have some relief from high heating costs," said the minister. "We also expanded the program this year to include those who use electricity and burn wood, as they face the same burden of heating their homes as those who use home heating fuel. The expanded program will significantly increase the number of people who will qualify this year for the rebate."

Households with an income of up to $22,500 will receive the full $200 rebate towards heating their homes. Individuals and families with income between $22,500 and $30,000 will also receive assistance; however, the rebate will be adjusted on a sliding scale as income level increases. The minimum rebate will be $100.

Furthermore, government has added several provisions to address incidences where people would not ordinarily qualify due to special circumstances. The provisions include:

In cases where one spouse dies, the qualifying criteria would only include the surviving spouse�s income, as eligibility is normally determined using the previous year�s family net income.

In cases where one spouse resides in a long-term care facility, the qualifying criteria would be based on family net income less the portion required to support the spouse in long-term care.

Taxable income received by a person to pay for adult basic education or skills training courses would be exempted in determining the household�s net income.

In addition to the heating rebate, the Provincial Government also initiated last year a $6.9 million Residential Energy Efficiency Program to be implemented over a five-year period. The program is designed to assist people make their homes more energy efficient and to encourage better energy conservation practices.

While the Home Heating Rebate Program is targeting low income earners, all residents of the province will benefit from effectively zero electricity rate increases following recent decisions of government and Newfoundland and Labrador Hydro (Hydro) regarding general rate increases. The Provincial Government will invest $400,000 in 2007 to ensure small businesses and residents in isolated diesel communities on the Labrador coast and island receive almost no rate increase similar to other Hydro customers. Hydro is able to basically maintain current rates for most customers for 2007, following negotiations with the consumer advocate and other interveners except for those in remote diesel communities. Government will absorb the cost of the planned increase for these customers.

The Williams government is moving forward on a social agenda guided by its poverty reduction strategy to ensure a healthy future for Newfoundlanders and Labradorians. In addition to the Home Heating Rebate Program, this government has moved forward on several significant social initiatives including:

$32.8 million to expand the Newfoundland and Labrador Prescription Drug Program;

$6.3 million to eliminate school fees;

$5.5 million for the Low Income Tax Reduction Program that will eliminate tax for single-tax filers earning up to $12,000 and $19,000 for families, and will reduce tax for income up to $14,600 and $21,900 respectively;

$3.2 million to increase the fuel supplement program for income support clients;

More than $5.5 million invested to increase income support rates by five per cent in 2006-07 and increasing to $7.4 million in subsequent years;

$3 million to index income support rates to the Consumer Price Index (CPI);

Elimination of claw-back of the universal child care program for income support clients;

$4.1 million to improve the children�s dental health program;

$1.2 million to expand the number of sites where Adult Basic Education is offered.

"Our government has placed a priority on helping those most in need and we continue to develop and implement key initiatives designed to help low income earners in this province," said Minister Sullivan. "These efforts are having a positive impact on many low-income families in Newfoundland and Labrador."

Further information on the program can be found at www.gov.nl.ca/fin/homeheating or by calling: (709) 729-1695 or toll-free at 1-877-729-1695.

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Media contact:
Deborah Pennell
Director of Communications
Department of Finance
709-729-6830, 685-6612
deborahpennell@gov.nl.ca

BACKGROUNDER
Home Heating Rebate Program

The Home Heating Rebate Program is available to residents of the province whose household income is $30,000 or less, regardless of whether the primary source of heat is home heating fuel (furnace fuel, stove oil and propane), electricity or wood. 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. Individuals and families with income between $22,500 and $30,000 will receive assistance based on a sliding scale. The minimum rebate an eligible individual or family will receive is $100.

Example of Sliding Scale

Family Net Income	Rebate Amount
$22,500 or less	$200
$23,500	$187
$24,500	$173
$25,500	$160
$26,500	$147
$27,500	$133
$28,500	$120
$29,500	$107
$30,000	$100

Eligible individuals or families must apply for the rebate. While the rebate is expanded to include all sources of heat, for administrative purposes, applicants must provide an invoice for an electricity purchase from November 2006 to April 30, 2007. Only one person per household may apply for the rebate. The deadline for submitting applications is April 30, 2007. Applicants should allow six to eight weeks for processing.

Application forms are available through:

the Department of Finance and the Seniors� Resource Centre in St. John�s, at all Human Resources, Labour and Employment offices and throughout the province at all Government Service Centres;

the Department of Finance web site (www.gov.nl.ca/fin/homeheating)

Applications must be sent to:
Home Heating Rebate Program
Department of Finance
Tax Administration Division
P.O. Box 8740, St. John�s, NL
A1B 4K3

For further information on the Home Heating Rebate Program, please contact the Department of Finance at 709-729-1695 or toll-free at 1-877-729-1695.

2006 12 15 1:10 p.m.

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