Bill C-241 proposes changes to the Income Tax Act. If passed, it would allow tradespeople and indentured apprentices to deduct travel expenses from their income. This applies when they work in construction at a job site at least 120 km from their home.
To be eligible for this deduction, the tradesperson or apprentice must have been required to pay these travel costs themselves as part of their job agreement. They also cannot have received an allowance for these expenses that wasn't already counted as part of their income. Finally, they cannot claim these same expenses under any other part of the Income Tax Act as either a deduction or a tax credit.
This change would apply to the 2022 tax year and all following years. This means that tradespeople and apprentices who meet the requirements could lower their taxable income by deducting these travel expenses.
Inflation and Cost of Living
This bill may help reduce the cost of living for tradespeople and apprentices who travel long distances for work. By allowing them to deduct travel expenses, it could offset some of the financial burden associated with these costs.
Jobs
This bill supports tradespeople and apprentices by reducing their financial burden of travel, which may encourage them to take jobs further from home. This can improve job opportunities and fill labor needs in construction projects located in more remote areas.
Taxation
The bill amends the Income Tax Act to allow a new deduction for tradespersons and indentured apprentices. This deduction applies to travel expenses for construction jobs located at least 120 km from their ordinary place of residence, subject to certain conditions. This change will affect the amount of taxable income reported by eligible tradespeople and apprentices.