Ottawa is proposing a new, non-refundable tax credit to help public transit users in the 2006 Budget.

The credit will cover users of buses, streetcars, subways, commuter trains, and ferries.

It will be claimable by the individual or a spouse or common-law partner for: the transit costs of the individual, the individual’s spouse or common-law partner, and the individual’s dependent children under 19.

Taxpayers making claims will have to retain their receipts or passes for verification purposes. Ottawa intends to hold further consultations with public transit authorities to develop appropriate receipting practices.

This measure will kick in on July 1, 2006.