Introduced as a private member’s bill. (These don’t often become law.)
Status
Third reading (Senate), as of Nov. 7, 2024 (This bill did not become law.)
Summary
This is from the published bill.
This enactment amends the Income Tax Act to allow tradespersons and indentured apprentices to deduct from their income amounts expended for travelling where they were employed in a construction activity at a job site that is located at least 120 km away from their ordinary place of residence.
This is a computer-generated summary of the speeches below.
Usually it’s accurate, but every now and then it’ll contain inaccuracies or total fabrications.
Bill C-241 seeks to amend the Income Tax Act to allow tradespersons and indentured apprentices to deduct travel expenses from their income when they are employed in construction at a job site at least 120 kilometers away from their ordinary residence. The bill aims to provide tax fairness for skilled trades workers, incentivize them to take jobs in remote areas, and address labor shortages. While there is existing government support for labor mobility, this bill proposes a tax deduction, potentially offering greater savings for eligible tradespeople.
Conservative
Strong support for C-241: The Conservative party strongly supports Bill C-241, which aims to amend the Income Tax Act to allow tradespersons to deduct travel expenses. They believe this bill is a step in the right direction to promote trades and make the environment less cumbersome and more appealing to new entrants.
Addressing skilled trades shortage: Party members emphasize the critical shortage of skilled tradespeople in Canada and advocate for actions, including Bill C-241, to address this shortage and support those currently working in the trades. They also note that the demand for skilled trades is expected to remain high over the next decade or more as Canada’s economy recovers.
Tax fairness for tradespersons: The Conservatives view this measure as tax fairness for skilled trades workers. They argue that it will equalize the playing field and incentivize tradespeople to take contracts farther from home, which would be beneficial for smaller communities that have trouble attracting skilled labor. The ability to deduct these expenses recognizes the costs tradespersons incur to get to their jobs, similar to how businesses deduct transportation costs.
Importance of family: Party members recognize the sacrifices made by tradespeople who travel long distances for work, often being away from their families for extended periods. They highlight that the bill would help alleviate the financial burden of travel, enabling tradespeople to visit their families more frequently or bring their families to their job sites, which supports family unity and provides economic benefits to smaller communities.
NDP
Strong support for bill C-241: The NDP strongly supports Bill C-241, a private member's bill aimed at providing tax relief for skilled trades workers who travel long distances for work. They emphasize the bill's importance in addressing fairness and supporting the working class.
History of the bill: NDP members highlight their previous efforts to introduce similar legislation, emphasizing the long-standing need for this type of support for trades workers. They've been fighting alongside the building trades to get this passed for a long time.
Fairness and economic justice: The NDP argues that the bill addresses a fundamental unfairness in the tax system, where corporations and management classes can deduct travel expenses, while skilled trades workers often cannot. They believe this measure will help level the playing field and recognize the value of the working class.
Modest tax credit: The bill provides a modest tax credit and is a good example of how the House can get things done for Canada. They note that there are many other tax credits out there for other individuals and corporations, and it is unfortunate that there isn't one to allow for travel-related expenses for work done at least 120 kilometers away from a skilled trades member's place of residence.
Bloc
Supports tax deduction for tradespeople: The Bloc Québécois supports Bill C-241, which would allow tradespeople and indentured apprentices to deduct travel expenses for construction jobs located at least 120 km from their residence. They believe it's a matter of fairness, as other professions already have similar deductions.
Addresses labor shortage, inflation: The Bloc views the bill as a way to address labor shortages in the construction industry, which in turn can help alleviate inflation. By making it more financially feasible for tradespeople to travel to job sites, the bill encourages worker mobility and reduces reliance on government programs.
Fairness for skilled workers: Bloc members emphasize that tradespeople often face physically demanding work in challenging conditions, and this tax deduction recognizes their contribution. They believe it's a practical step towards valuing and supporting the skilled trades, which are essential to Quebec's and Canada's economy.
Liberal
Opposes Bill C-241: The Liberal Party opposes Bill C-241 because it is redundant and problematic, as the objectives of the bill are already achieved through the labor mobility tax deduction that the government implemented in Budget 2022. They encourage the House to withhold its support for Bill C-241.
Existing labor mobility deduction: The government created a labor mobility tax deduction allowing tradespeople to deduct up to $4,000 in eligible travel and temporary relocation expenses, giving them a tax credit of up to $600 a year, which they believe is carefully and effectively targeted at achieving its objective. This bill contains safeguards that contain its scope and cost and ensure that it provides fair and targeted support where it is needed most.
Bill C-241 deficiencies: Bill C-241 has technical deficiencies, lacks safeguards, and introduces fairness issues because it does not define core concepts, requires no minimum relocation period, and places no limit on the number of trips or expenses, leading to potential confusion and administrative challenges.
Supporting the construction industry: The government recognizes the importance of supporting the construction industry and addressing labour shortages, using mechanisms such as forgiving interest on federal apprentice loans and enhancing the labor mobility tax credit. They have also focused on immigration policies, international students, and programs like the Canada Workers Benefit to support workers and enhance the labor market.
Pursuant to order made on Thursday, June 23, 2022, the division stands deferred until Wednesday, March 22, at the expiry of the time provided for Oral Questions.
Pursuant to order made on Thursday, June 23, 2022, the House will now proceed to the taking of the deferred recorded division on the motion at third reading stage of Bill C-241 under Private Members' Business.
Links & Sharing
(The House divided on the motion, which was agreed to on the following division:)
