Fitness Tax Credit

Federal government would save billions with an Adult Fitness Tax Credit

The federal government would save $2.5 billion over the next 21 years by extending the benefits of the current Children’s Fitness Tax Credit program to adults, according to Dave Hardy, President of the Fitness Industry Council of Canada (FIC) following the release of an economic study on the effects of the program.

“The financial incentive offered by a federal adult fitness tax credit will encourage nearly one million more Canadians to get active and healthier,” said Hardy. “These healthier Canadians will need less health care and miss less work due to illness.”

The economic report conducted by the Centre for Spatial Economics on behalf of FIC concludes that it would take just three years for the health care cost savings resulting from a more active and healthier population to outweigh the net personal tax losses incurred by the government. The credit takes the form of a non-refundable tax credit on eligible amounts per person. Projecting 21 years outward, the report’s findings show the government would see cumulated health care savings of $9.1 billion and cumulated net personal tax losses of $6.6 billion.

Research consistently shows that a physically active person is more likely to have better health outcomes than a non-active person. Regular physical activity is effective in the prevention of several chronic diseases.

“With the Children's Fitness Tax Credit, the federal government already agrees that a financial incentive is an appropriate way to increase physical activity among Canadians,” said Hardy. “Extending the program to include adults is not only good for the personal health of Canadians but also the financial health of the country. We urge the government to act quickly on this important initiative.”

The report, “Economic Benefits of an Adult Fitness Tax Credit”, builds on a March 2007 poll, conducted by Pollara Inc.. When polled more than three in five Canadians supported the idea of expanding the existing federal Children’s Fitness Tax Credit to include all Canadians over the age of sixteen.

The Adult Fitness Tax Credit campaign is your chance to tell the Government of Canada all active Canadians deserve a tax credit for contributing to lowering national health care costs while maintaining an active and healthy lifestyle.