Enhancing the Eligible Educator School Supply Tax Credit
Pursuant to Bill C-8, the Eligible Educator School Supply Tax Credit rate will be increased from 15% to 25%. This rate will still apply to eligible teaching supplies expenses of up to $1,000 and the credit will remain refundable. The definition of eligible teaching supplies will be modified to include technological devices and the requirement that the supplies must be used in school will be waived.
This measure would apply to the 2021 and subsequent taxation years.
Pursuant to Bill C-8, the Eligible Educator School Supply Tax Credit rate will be increased from 15% to 25%. This rate will still apply to eligible teaching supplies expenses of up to $1,000 and the credit will remain refundable. The definition of eligible teaching supplies will be modified to include technological devices and the requirement that the supplies must be used in school will be waived.
This measure would apply to the 2021 and subsequent taxation years.
SPSD/M was used to estimate the fiscal impact of a 10-percentage point increase in the refundable tax credit rate. Growth in the number of teachers and early childhood educators was based on Employment and Social Development Canada’s (ESDC) Canadian Occupational Projection System. Assumptions were made on the amount spent on technological devices. A behavioural response was not incorporated.
The main sources of uncertainty relate to the projection of eligible teaching expenses and the potential behavioural response.
- Estimates are presented on an accruals basis as would appear in the budget and public accounts.
- Positive numbers subtract from the budgetary balance, negative numbers contribute to the budget balance.