Manitoba doubling fertility tax credit for those trying to have a baby through IVF
Budget says people trying to conceive via treatments like IVF will now be eligible for credit of up to $16K
The Manitoba government is doubling the tax credit available to families and individuals trying to have a baby with the help of fertility treatments.
Right now, Manitobans pursuing assisted fertility treatments, such as IVF, can apply to get up to $8,000 back on their taxes through the fertility treatment tax credit.
Under a change in the NDP government's first budget, tabled on Tuesday, that will now be increased to $16,000.
"Everyone in Manitoba is dealing with the rising cost of living today," Premier Wab Kinew said during a Wednesday press conference at Heartland Fertility Clinic in Winnipeg.
"We think that your decision to start a family should be based on what's in your heart, not what's in your bank account."
Manitoba has earmarked $1.3 million in the 2024-25 provincial budget for the tax credit, a government spokesperson said.
The party pledged last fall to prioritize reproductive health care on various fronts, including birth control and abortion access.
The fertility tax credit is a refundable personal tax credit that is equal to 40 per cent of treatments the individual or family spends on a licensed fertility medical expert or clinic, according to the province. It also applies to prescription drugs that aren't covered through private health coverage.
Until now, the credit would mean someone or a family trying to conceive via IVF or other treatments would only have up to $8,000 in costs reimbursed on expenses up to $20,000.
With the new changes, those who spend up to $40,000 on treatment would be eligible for a maximum of $16,000.
"It can be a very stressful time for families. It can be emotionally draining, it can be physically painful and too often it can be very, very expensive for families," Health Minister Uzoma Asagwara said at Wednesday's news conference.
"Cost should not be one of those challenges or barriers that people face."
WATCH | Health minister on why fertility tax credit changes were a priority in NDP's 1st budget:
They said the province will also expand the list of different kinds of expenses that may be claimed, including money paid to surrogates and donors for medical expenses incurred. Some payments to donor and fertility clinics will also become eligible.
Asagwara said the tax credit can also be layered with existing federal tax credits to lower cost.
Demand for fertility services increasing: doctor
Heartland Fertility Clinic has been providing reproductive fertility treatments for Manitobans since 1997, and "the cost of reproductive care has gone up," said Dr. Gordon McTavish, the clinic's medical director.
Demand for services has significantly increased over the past 27 years, he said, and expanding the team of experts was necessary to keep up. The clinic also had to move to a 15,000-square-foot spacefrom a 6,500-square-foot space, he said.
When the fertility tax credit was first brought into effect, McTavish says, the average cost of an IVF cycle through Heartland cost in the range of $10,000 to $12,000. That figure is now closer to $18,000 to $20,000, he says. Medications and other treatments cost thousands more.
"People are almost not even [getting] … the full benefit of the tax credit because now some of the costs have exceeded that $20,000 [cap]," he said. "This doubling of the tax credit is really going to be beneficial for some people who have really been on the fence."
He says Heartland expects to perform 450 to 500 IVF cycles this year, but that could increase by 20 per cent due in part to the tax credit changes that may make the process more accessible.
WATCH | Fertility expert lauds NDP fertility tax credit changes:
McTavish also said one in six people struggle with infertility, and it can take more than one cycle of IVF to get pregnant.
That's one reason why he said he prefers the annual Manitoba fertility tax credit to some in other jurisdictions that only grant residents subsidies or coverage for one IVF cycle in their lives.
"If you've only been given that one opportunity and it doesn't work, then it's really difficult to overcome those financial burdens," said Dr. McTavish.
"The lovely things about ours is that it's an annual tax credit that's available to Manitobans that they can go forward on a regular basis."
Kate McIntyre and her husband have a two-year-old and another on the way. She says their path toward having kids wasn't straightforward due to fertility challenges.
Both pregnancies were made possible by IVF. The process was time-consuming and emotionally painful, on top of being expensive, said McIntyre.
"The emotional complexity of infertility was compounded by the financial stress of paying for both the fertility treatments themselves and the prescription medications that came with it," she said.
She said the previous iteration of the tax credit was "essential" to helping the couple afford the treatments. With costs rising, McIntyre said expanding the credit will make it more accessible to other families.
"[Expanding] the eligible costs that can be claimed as a part of the fertility tax credit, and doubling the amount that can be claimed, is so critical to helping Manitoba families manage the financial burdens and realities of undergoing fertility treatments," said McIntyre.
WATCH | Premier on doubling of Manitoba fertility tax credit:
