New tax credit cuts day camp costs

A new federal tax credit will help parents save money on children's arts, cultural, recreational or developmental programs.

That will help many parents this week as it is March Break, an expensive time for families who enroll their children in day camps.

The 2011 tax year is the first time parents can claim the Children's Arts Tax Credit.

George Pothitos, the artistic director at Neptune Theatre, said the organization is promoting the incentive to help the school's programs.

"This kind of helps. It actually creates more opportunities not just for one child, but for many children in one family. It opens them up to so many things. I think it's terrific," Pothitos told CBC News.

To be eligible, a program must run at least five consecutive days or at least once a week for a minimum of eight consecutives weeks. On $500, for example, parents would get back $75.

Matt Smith, an accountant at Deloitte and Touche, said the credit has not received much publicity. He said it was worth exploring as tax season rolls around.

"I think a lot of people won't be aware of it. It's definitely something to keep in mind. Any reduction we can get in taxes is always welcome."