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April 26, 2005
Tax advantage improved for low and middle-income families
Alberta Family Employment Tax Credit expanded and enhanced with Bill 40
Edmonton... An enhanced and expanded Alberta Family Employment Tax Credit will extend support to some 13,000 more working families and increase the tax credit available. To implement changes to the program announced in Budget 2005, Finance Minister Shirley McClellan introduced in the Legislature Bill 40, the Personal Income Tax Amendment Act, 2005 (No. 2).
"This program supports children in low and middle-income working families," said McClellan. "The working-income threshold to qualify for the program will be reduced to $2,760, making more low-income families eligible and increasing the benefits many families currently receive."
In 2005-06, about $85 million in benefits will be provided to approximately 146,000 families.
Credits will be extended to the third and fourth children in qualifying families, and the maximum credit for the first child will be increased by $50 to $550. Starting July 2006, the phase-out threshold and credit amounts will be indexed to inflation, ensuring the benefits are preserved over time.
The credit is phased in and out based on family income, to a maximum of $550 for the first child, $500 for the second, $300 for the third, and $100 for the fourth.
Families do not need to apply for the credit. Eligibility is determined from the information the federal government uses for the Canada Child Tax Benefit.
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For examples of what the enhanced credits mean to families at different income levels, see Budget 2005 - Alberta Tax Advantage, pp. 132-133; or the Alberta Finance website:
Media enquiries may be directed to:
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Jamie Edwardson |
To call toll free within Alberta dial 310-0000.
Copyright(c); 2005 Government of Alberta