Effective starting in January 2016, the Ontario Electricity Support Program lowers electricity bills for low-income households by applying a credit directly to eligible customers’ bills.

Without the Budget 2016 measure, assistance provided under the Ontario Electricity Support Porgram would have been required to be included in income. Although an offsetting deduction is available so that the assistance is effectively non-taxable, the amount of assistance may affect income-tested benefits, such as the goods and services tax/harmonized sales tax credit.

For 2016 and subsequent taxation years, Budget 2016 proposes to exempt from income amounts received under the Ontario Electricity Support Program. As a result, assistance received under the program will not affect income-tested benefits.

The CRA is committed to providing taxpayers with up-to-date information. The CRA encourages taxpayers to check its webpages often. All new forms, policies, and guidelines will be posted as they become available.

In the meantime, please consult the Department of Finance Canada's Budget 2016 documents for details.