The Ontario government has introduced a tax credit this year encouraging residents and families to take short-term trips within the province in an effort to boost the tourism and hospitality sector amid the ongoing COVID-19 pandemic.
Dubbed the “Ontario Staycation Tax Credit for 2022” residents can claim 20 per cent of their accommodation such as a hotel, motel, resort, lodge, bed-and-breakfast, cottage or campground when filing for personal income tax and benefit return.
Ontarians are eligible to claim up to up a maximum of $1,000 as an individual or $2,000 if you have a spouse/common-law partner or children to see a return of $200 or $400, respectively. This can be for one trip or for multiple trips and the stay must be under a month.
For the accommodation expenses, a detailed receipt must indicate it was paid by the person, have GST/HST, the date of the stay, the location of the accommodation, a reasonable amount for accommodation if it was a package, and it can not be reimbursed by a friend or employer.
The tax credit is temporary and runs from Jan. 1 until Dec. 31, 2022, for leisure stays.
A spokesperson for the Ministry of Finance confirmed to Global News that Airbnb rentals can be included for the tax credit so long as the proprietor is registered for GST/HST and the accommodation fits all the other criteria stated.
The government said the tax credit does not apply to business travel.
It also does not apply to timeshare agreements, staying on a boat, train or other vehicle that can be self-propelled, the government said.
Anyone who is an Ontario resident on Dec. 31 is eligible to make the claim. Only one person per family can claim the credit for the year, the government said.