Since moving downtown I haven’t had much of a commute to work. Being that I’m starting a fancy new job tomorrow, I had to buy a monthly bus pass that will enable me to get to and from work. My future employer is across the bridge, I will need to hop on a bus. I can either walk to the far bus stop or get on a bus near my house and transfer to the other one. Whichever way I choose, I will be needing a pass.
On July 1, 2006, the Government of Canada began its program to offer individual Canadians a non-refundable tax credit to help cover the cost of monthly or longer duration public transit passes. Because it is a non-refundable tax credit, anyone who applies does not receive the money in the form of a refund. Instead, the amount claimed is multiplied by the lowest personal income tax rate for the year (15.25% in 2006) and then is deducted from the amount of tax owed for that year [TransitPass.ca]
I purchased a monthly 1-Zone pass from my local fare dealer and recently learned about the tax credits I can receive on my 2007 taxes next year. My mother’s known about this since the system first started last summer, so she’ll be adding them to her 2006 taxes. Although it’s not technically a “rebate”, I suppose the credit does help, along with warm fuzzies you’ll feel by knowing you’ve made the clean, environmentally conscious choice of riding public transit.
If you’ve been purchasing monthly bus passes just make sure you keep a) the receipt and b) the pass to make sure you can get your tax credit – every bit helps.