Proposed bill could mean tax credits for active Albertans

On Nov. 18, the Alberta Income Tax (Physical Activity Credit) Amendment Act, 2008, passed its third reading in the Alberta Assembly. Spearheaded by Dave Rodney, MLA for Calgary-Lougheed, the tax credit is “designed to keep Albertans healthy and happy and reduce strain on our healthcare system as well.”  

Rodney, the only Canadian to reach the summit of Mt. Everest twice, is keen to see activities such as “curling, slow-pitch... as well as activities like going to health clubs, joining a yoga group, walking, biking, hiking...” all qualify for the $500 income tax credit.  However, it will be up to “the departments of health and finance to determine exactly which activities will qualify,” said Rodney.

“The province of Nova Scotia has implemented a fitness tax credit and the province of Ontario has promised to do so,” said Dave Hardy, president of the Fitness Industry Council of Canada.  Coupled with the federal children’s fitness tax credit, Hardy believes that extending this type of financial incentive to include adults “will get more Canadians active... and eventually show that over a period of time the government will save billions of dollars.”

Although Hardy acknowledges that his organization is supported by over 2000 fitness facility operators, he said “we’re advocating for something that is wide-reaching and that will affect everyone.  We could have come out and just asked for a gym tax credit.  We didn’t do that.”

The gymnastics program in Jasper has seen a spike in enrollment this year, hitting about 100 participants in September over last year’s approximately 70, according to head coach Nadia Wassef. Although, she is quick to caution that “some different factors have helped us right now.  Having our new facility just starting up and the Olympics always helps the enrollment go up.”

So, the utility of the children’s fitness tax credit as an indicator for the success of a similar adult fitness tax credit is somewhat dubious, at least in the short-term.  Scott Hennig, of the Canadian Taxpayers Federation, sees Alberta’s adult fitness tax credit as “a feel-good type move.”  

“It’s a $500 tax credit, meaning that if you jump through all the hoops and use the entire $500 dollars or more on accredited fitness activities that you have a receipt for, and you submit all your receipts, you will receive $50 on your taxes,” said Hennig.  “Our organization is in favour of tax relief, but this isn’t a real big tax relief.”  

According to Rodney, “it’s meant to be a bill that is positive and proactive, on the wellness side of things.  It’s a carrot rather than a stick, I suppose.”  

However, the carrot, or incentive provided by this tax credit may not be sufficient motivation for the inactive.  “If prospects of heart attacks and death and heart disease and being obese are not enough incentive to be healthier, or if you’re smoking, for example, the prospects of dying of lung cancer and emphysema, if that’s not enough to encourage you to be healthy, the government giving you $50 probably isn’t going to either,” said Hennig.

Things could be worse.  “It is tax relief,” said Hennig.  “I don’t want to crap all over this, but it’s certainly not going to be revolutionary.”  However, “the reality is, we’re in a war,” said Hardy.  “We have an aging demographic, healthcare costs have nowhere to go but up... and the number one way to be more preventative is to encourage people to take care of their own health.”

The amendment passed third reading and is pending proclamation.