The Government of Yukon is taking important steps to support Yukoners by introducing a new fertility and surrogacy tax credit and implementing other amendments to the Income Tax Act.
If passed, the tax credit will be available to Yukoners seeking fertility treatment or surrogacy services. It will cover 40 per cent of costs incurred for fertility treatments including surrogacy expenses to a maximum of $10,000 per year, with unlimited lifetime availability. Yukoners will be able to claim this credit when they complete their 2025 tax return.
Additionally, the Government of Yukon plans to follow Canada’s compassionate approach and align with recent changes to the Canada Child Benefit by extending the benefit for up to six months following the death of a child.
In response to recent changes in the federal alternative minimum tax, the Government of Yukon has introduced minor technical changes to maintain consistency with the federal Act. The alternative minimum tax ensures that the highest earners cannot disproportionately lower their tax liability through various advantages in the tax system. The alternative minimum tax ensures that taxpayers with substantial income pay a minimum level of tax, regardless of deductions, credits or other available tax benefits.
The Government of Yukon is committed to supporting Yukoners at every stage of their lives. By introducing a refundable fertility tax credit and aligning with compassionate measures in federal programs, we are reducing financial barriers and providing critical support for families. These changes ensure our tax system remains fair and equitable, while delivering meaningful benefits to those who need them most.
Expanding access to fertility treatments and surrogacy services is a significant step toward addressing affordability challenges faced by Yukoners. This new fertility tax credit for fertility treatments including surrogacy treatments demonstrates our government’s commitment to supporting individuals and families in their journey to parenthood. Coupled with our broader health initiatives, this measure underscores our dedication to the health and wellbeing of all Yukoners.
The Yukon NDP committed to delivering this tax credit for fertility and surrogacy treatments because Yukoners told us they needed it. This tax credit will make it a lot easier for Yukoners to start and grow their families here in the territory.
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Creating a refundable tax credit for fertility and surrogacy treatments is part of the Confidence and Supply Agreement between the Yukon Liberal government and the Yukon NDP Caucus.
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In federal Budget 2023, Canada reformed the federal alternative minimum tax to reduce the number of taxpayers affected, while increasing the amount paid by the highest earners.
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The alternative minimum tax works alongside the regular income tax system, requiring taxpayers to calculate their tax liability under both systems and pay the higher amount.
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In the Yukon, it is estimated that fewer than 30 individuals will be subject to the alternative minimum tax in any given year.
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The proposed amendments also include a minor amendment to the definition of “cross-border transport equipment” to include eligible Yukon mining assets in calculations for the Yukon government’s mining carbon rebate program. This is a housekeeping amendment as the Government of Yukon is not aware of any companies that currently possess cross-border equipment.
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The Government of Yukon is also making fertility and surrogacy treatments more accessible by expanding the medical travel subsidy for eligible Yukoners.
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Under expanded regulations for the Medical Travel Program, Yukoners may be eligible to have airfare costs covered and a subsidy to assist with the cost of accommodation, meals and transportation.
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Given the often-high costs of fertility treatments, this subsidy is aimed at easing some of the financial barriers associated with accessing fertility or surrogacy services outside the Yukon.
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Expanding medical travel coverage for fertility and surrogacy treatments was the first phase in the government’s broader plan to improve access to fertility treatments for Yukon residents.
Laura Seeley
Cabinet Communications
867-332-7627
[email protected]
Eric Clement
Communications, Finance
867-393-6482
[email protected]
Laurie Tritschler
Yukon NDP
867-687-0284
[email protected]