Ottawa is strengthening the public transit tax credit for monthly public transit passes.

Since the introduction of the credit in July 1, 2006, Ottawa says, several transit authorities have developed proposals for the introduction of cost-per-trip electronic payment cards.

The budget proposes to accommodate these electronic payment cards by extending eligibility for the public transit tax credit. Under this proposal, the cost of an electronic payment card will be eligible for the credit if:

> the cost relates to the use of public transit for at least 32 one-way trips during an uninterrupted period not exceeding 31 days, and;

> the transit usage, and cost of those trips, are recorded and receipted to the purchaser by the relevant transit authority.

This measure will apply to electronic payment cards issued after 2006.

For low-income individuals who are unable to afford a monthly pass, Ottawa is proposing to extend eligibility for the public transit tax credit to accommodate weekly passes, where the individual purchases at least four consecutive weekly passes.

This measure will apply to weekly passes valid for use after 2006.