Ontario announces new childcare tax credit for eligible families

Simcoe-North MPP Jill Dunlop visits a YMCA in Midland on Wed., Aug. 28, 2019 (CTV News/Krista Sharpe)

Parents and caregivers across Ontario will need to save receipts from day and summer camps for a new tax credit.

Ontario's Minister of Finance Rod Phillips and Minister of Education Stephen Lecce joined Simcoe-North MPP Jill Dunlop for the announcement this afternoon in Midland.

The tax credit, dubbed CARE, will be eligible for families with a household income of $150,000 or less.

CARE could give parents up to 75 percent of their eligible expenses, including childcare in centres, homes and camps.

The province says the new tax credit will provide an average of about $1,250 per family in new childcare support to nearly 300,000 families.

Families that have a child with a severe disability will get a higher maximum amount, with no age limitations.

The CARE tax credit is in addition to the existing Child Care Expense Deduction (CCED), which provides both provincial and federal tax relief for eligible childcare expenses.

The new tax credit will begin in 2021.