Families with low or modest incomes will begin receiving the Nova Scotia Affordable Living Tax Credit this July to help offset the impact of the HST restoration.

On July 1st, the HST in the province will be restored to 15%, when the provincial portion of the HST increases from 8% to 10%. The HST is expected to generate an additional $214.8 million in 2010-11, and $307.5 million in 2011-12.

“While we move toward getting our province back to balance, we are taking the necessary steps to keep life affordable for Nova Scotians,” said Finance Minister Graham Steele. “The Affordable Living Tax Credit will help put additional dollars in the pockets of lower and modest income families.”

Qualifying Nova Scotia households will receive a tax credit payment every quarter, along with the federal GST/HST credit. People must file their income tax return each year to be eligible.

In addition to the Affordable Living Tax Credit, government is working to balance the impact of the HST restoration by offering other new rebates and credits including:

– point-of-sale rebates on certain essential items including children’s clothing, footwear, and diapers, and feminine hygiene products;

– tax reduction for low-income seniors; and

– tax credit for Nova Scotians living in poverty.

IE