Newsrelease

June 6, 1997
Edmonton, Alberta

Tax Credit Cheques for Low and Middle Income Families with Children Hit the Mail in July

Close to 130,000 Alberta families are about to get their first cheques as a result of the government's reinvestment plans announced in 1996. Families eligible for the Alberta Family Employment Tax Credit (AFETC) will receive a notice explaining their benefits this week, with the actual cheque or direct deposit to follow in late July, said Provincial Treasurer Stockwell Day.

"Albertans told us that one of their priorities was a tax break for working families. So last June, we announced the Alberta Family Employment Tax Credit for low and middle income families with children. Next month, the cheques will hit the mail. We're delivering on our promise to reinvest in Alberta's greatest resource, our children and families."

No application for the AFETC is necessary explained Day. Families who qualify for the credit have been identified through federal government calculations based on income tax returns. The Alberta government mailed a notice today to inform families who are eligible for the credit.

Eligibility this year is based on a minimum family working income of $6500 and a maximum family net income of $37,500. In 1998, the maximum family net income rises to $50,000. "This program has two objectives," said the Treasurer. "The first is to encourage parents to work; self-sufficient working parents are good role models for children. The second objective is to provide some additional financial support for children in lower and middle income families."

The tax credit starts out at eight cents on the dollar at the bottom end of the scale and is reduced by four cents on the dollar towards the upper end of the scale. The maximum credit allowed per child for the year will be $250, to a maximum of $500 per family. The total program for 1997 will amount to $35 million. Maximums will increase in 1998 to $500 per child and $1000 per family.

The program addresses one of the priorities identified by Albertans through last year's Straight Talk, Clear Choices consultation. In addition to debt repayment, Albertans chose working families with children as a primary target for the reinvestment dollars available from the balanced budget.

For more information, please contact:

Trish Filevich
Director of Communications
Alberta Treasury
(403) 427-5364
webmaster@treas.gov.ab.ca

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