News Release - December 12, 2011
TAX SAVINGS FOR FAMILIES AND FIRST-TIME HOME BUYERS TO TAKE EFFECT JANUARY 1, 2012
The provincial government today confirmed that new and expanded tax credits for first-time homeowners and for families worth up to $11.6 million will take effect January 1, 2012.
"Both the First-Time Homebuyers' Tax Credit and the expansion to the Active Families Benefit will help to make life more affordable for Saskatchewan residents," Finance Minister Ken Krawetz said. "We said we would expand the PST exemption on children's clothing, and we did it within days of being re-elected. We said we would help young people get into their own homes and lower the cost of raising a family and we are moving on that now."
The First-Time Home Buyers Tax Credit will provide a provincial non-refundable income tax credit of up to $1,100 to eligible taxpayers, determined by applying a provincial tax credit rate of 11 per cent to the first $10,000 of an eligible home purchase.
There will also be provisions to allow persons with a disability to qualify for the purchase of more accessible homes.
The details of the program are still being developed by Finance officials and the program will be formally introduced as part of the 2012-13 Budget.
However, Krawetz said the government can assure eligible homebuyers that the personal income tax credit will apply to qualifying homes acquired after December 31, 2011.
The new non-refundable income tax credit is expected to save new home buyers an estimated $6.6 million annually.
Eligibility rules are expected to be similar to those for the existing federal incentive for first-time home buyers which provides a $750 federal income tax credit. Under those rules, the person applying for the credit must not have owned a house during the current year or within the past four years.
The Active Families Benefit introduced in 2009 provides an annual income tax benefit of up to $150 per child for children ages 6 to 14 years to help families with the cost of their children's participation in cultural, recreational and sports activities.
"We're following through on our commitment to expand this income tax benefit to include all children under 18," Tourism, Parks, Culture and Sport Minister Bill Hutchinson said. "This will save families an estimated $5 million annually."
Both of these incentives will be claimed on the individual's 2012 Saskatchewan income tax return, which will be filed in the spring of 2013.
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