A tax credit for parents who enroll their children in sports activities to keep them physically active came into effect on Friday with the federal finance minister saying the idea is to make young people "sweat."
Jim Flaherty said any sport that gets a young person's heart pumping will qualify for the tax break.
"The idea is to sweat ... to make sure that young people get out there and sweat a bit and then they (parents) will qualify for the tax credit," Flaherty said Friday.
The minister was in a Whitby, Ont. ice rink to meet with parents and members of the media to outline the tax credit.
Introduced in the federal budget in May of last year, physical fitness programs approved by the federal government will result in a tax credit of up to $500 for each child under age 16.
Starting this month, parents are able to collect receipts from recognized sports associations and include them when they file their taxes in 2008.
It is welcome news for parents.
"It's like getting a big discount coupon," Dave Young said. "It's nice, it lowers the cost."
"You know the kids want to be in sports anyway," Ann Young added. "It's nice to get something back from it."
Sports that qualify include swimming, soccer, hockey and basketball. Golf programs for youth will even be eligible, according to Flaherty.
"Young people aren't allowed to use carts under the age of 16, so they actually walk the course with a bag and that's a lot of exercise, according to the expert panel we had look at it."
Sporting associations and the Canada Revenue Agency will have further information on sports that will qualify for the fitness tax credit.
The government estimates it will cost about $160 million. But Flaherty said it could also result in "tremendous savings to our health system over the years if young people get more physically active in Canada and continue as physically active adults."
A similar fitness tax credit idea was floated by Ontario government officials in 2005. But Premier Dalton McGuinty quickly shot it down, saying the proposed $150 credit would be too expensive while the province runs a deficit.
The federal government may extend the fitness tax credit to adults sometime in the future.
Flaherty said that had been proposed and may be considered later.
"Our commitment was to start with young people and that's where we started. That's where we, quite frankly, think we'll get the best results in the long term because they are our future."
"But it doesn't mean that in the future there can't also be some help to encourage adults to be physically active as well," Flaherty said.
With a report from CTV's Paul Bliss
