What is the Children's Arts Tax Credit worth to Canadians?

Last week’s Throne Speech was virtually silent on the arts, save a brief mention of the Children’s Arts Tax Credit.  In the Speech, Governor General David Johnston cited the importance of the tax credit in helping Canadian families lower their tax burden.  

This piqued our interest in learning more about the importance of this tax credit to Canadians.

The Children’s Arts Tax Credit, a budget measure introduced in 2011, is estimated to be a tax expenditure of $35 million a year.  It allows parents to claim a 15% non-refundable tax credit, based on an amount of up to $500 in eligible expenses for children’s artistic activities, like music lessons. 

Put another way, the children’s arts tax credit provides a cumulative tax savings of $35 million for all Canadians.  It’s not clear how many Canadians claim the credit. 

What is particularly interesting is that the federal Department of Finance states that the uptake on the Children’s Arts Tax Credit is less than projected.  In the 2011 federal Budget, it was estimated the credit would cost the government up to $100 million, significantly more than the current projection of $35 million.

By contrast, the Children’s Fitness Tax Credit is currently projected to be worth $120 million.

This begs the question, why aren’t more Canadian kids engaged in arts activities?  And what does it mean for Canada’s arts and cultural sector?