Claim Tax Credit With A 2022 Ontario Staycation
Ontarians who support local tourism by enjoying staycations within the province between January 1 and December 31 2022 can claim a tax credit. The provincial government’s staycation tax credit offers a 20% return on accommodation expenses of as much as $1,000 per person or $2,000 per family to people who book overnight stays anytime this year.
The goal of the credit, which was announced on November 4 last year, is to support local businesses. The maximum returns work out to $200 per person or $400 per family. The move was welcomed by some businesses, as it might help those who were significantly affected by Covid-19 restrictions.
Details On Eligibility
The provincial government explains the details on eligibility for the staycation tax credit on its website. Ontarians can claim the accommodation expenses credit for a leisure stay that is not business-related of less than a month at a short-term accommodation.
The accommodation options include bed-and-breakfast establishments, campgrounds, cottages, hotels, lodges, motels, and resorts. The actual stay must take place between January 1 and December 31, regardless of when the payment is made.
Business Owners Welcome Initiative
Owner of Prince Edward County’s Lakeside Motel, Renda Abdo, said she thought the timing was perfect. Abdo explained that everyone had suffered as a result of Covid-19 restrictions, and that many people were still not happy about air travel or travelling far from home.
Elora-based Wild Tart pastry shop owner Geoffrey Wild said the credit might help to boost local tourism. Businesses that offer accommodation would not be the only ones to benefit from it. He added that the Omicron variant of the coronavirus was a reminder that people can enjoy travelling locally.
Wild also said that Ontario has something new to offer those who explore it, even if they have already done some travelling within the province.
CFIB Supports Tax Credit
Some local business owners weren’t the only ones to welcome the staycation tax credit. The Canadian Federation of Independent Business (CFIB) also expressed support for Ontario’s 2022 staycation tax credit.
Senior director of provincial affairs for Ontario with CFIB, Ryan Mallough said it made sense to delay the tax credit to a time when Ontarians would feel more confident and comfortable about taking advantage of it.
Should Have Been Introduced Earlier
For some, the staycation tax credit came too late. Personal finance and budget travel blog creator Barry Choi said the initiative should have been introduced long ago. He elaborated that local businesses could have used the boost and the money it would have brought in 2021, when things were much more difficult.
Choi added that he and his family had already travelled around Ontario, and that he was planning to travel outside Canada.