The Effectiveness and Distributional Effects of the Tax Credit for Public Transit

Abstract

This article studies the impact of a non-refundable tax credit for public transit introduced in July 2006 in Canada. I find no evidence that this tax credit increased the number of trips made using public transit. There is, however, some suggestive evidence that it did induce commuters to purchase monthly passes. Finally, the article discusses the distributional effect of this tax credit.

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