While I write this column, MPs in the House of Commons are debating a piece of legislation called the Budget Implementation Act. Let me review some of the tax credits that were in the federal budget.

Tax credits for trades people: $1,000/year in tax credits for trades people. A new $500 tax deduction for trades people for costs in excess of $1,000 for tools they must acquire as a condition of employment. Also, the $200 limit on the cost of tools eligible for the 100-per-cent capital cost allowance will be increased to $500.

For many years on the Opposition bench, Alberta MP Leon Benoit (Reform-Conservative) kept trying to change the Income Tax Act so that car mechanics could claim the cost of their tools against income tax. Well, once the new Conservative government was elected, the following point was made: Why just car mechanics? Why not make this credit available to all trades people?

Apprentices: Up to $2,000/year for employers who hire and train apprentices. Apprentices will be eligible for $1,000 grants as of January 1st, 2007.

Tax credits for employees: $1,000/year for all employees: The new Canada Employment Credit was targeted at employees specifically: Since self-employed people can deduct work expenses against their income, why shouldn’t all employees get a deduction to take care of their work expenses? For simplicity sake, we created a flat deduction so that people need not have to worry about receipts for what are truly universal expenses.

Tax credit for pensioners: $1,000/year pension income tax credit increase: This is actually a doubling of the $1,000 annual amount of eligible pension income that can be claimed under the pension income credit that was put in place years ago. The tax credit had not been indexed for inflation, so the true value had been decreasing over the years. The $1,000/year pension income tax credit increase should make up for past inflation and take care of this problem for several years to come.

Transit pass tax credit: People on low incomes and pensioners tend to be the largest users of public transit. This tax credit will help low income pensioners and the working poor. Most of the discussion in the media about the transit pass tax credit has been centered around environmental issues. However, I think that the advantage of this particular tax credit is that it is targeted to help Canadians on low incomes. For example, I visited with a disabled constituent during the election campaign who will benefit from this program.

These are just a few of the changes in the budget this year; keep an eye out for other changes when you do your income tax.

I’m Brad Trost, your Member of Parliament, and I welcome your feedback. Write or call my offices.