Ontario is proposing a new permanent Northern Ontario Energy Credit that would help eligible low- to middle-income northern residents with their energy costs.

First introduced in the 2010 Ontario Budget, the credit is central to the Lowering Energy Costs for Northern Ontarians Act, 2010, which was introduced in the Ontario legislature today.

The annual credit would be available to northern residents age 18 and older who pay rent or property tax for their principal residence. A single person would be eligible for a credit of up to $130, while a family (including single parents) would be eligible for up to $200.

The credit would be reduced for a single person with adjusted net income over $35,000, and eliminated when income exceeds $48,000. It would be reduced for families with adjusted family net income over $45,000, and eliminated when income exceeds $65,000.

For 2010, the province would process applications and deliver the credit in two instalments (November 2010 and February 2011).  For subsequent years, the credit would be paid quarterly and the application would be part of the personal income tax return.

The proposed credit is part of the province’s five-year Open Ontario plan to create jobs and economic growth.