Yukon parents will start cashing in on their kids come tax time.

Premier and Finance Minister Dennis Fentie announced the new Yukon Child Tax Credit and the Yukon Child Fitness Tax Credit this morning.

'These two new tax credits will return approximately $1 million annually of taxpayers' money to Yukon families,' Fentie announced in a news release this morning.

'They will assist parents in offsetting some of the costs of raising their families, as well as encourage their children's participation in programs that contribute to healthy, active living.'

The Yukon Child Tax Credit, according to the government, will provide all parents with tax relief of $140.80 for every child under the age of 18, in addition to federal tax credits.

The Yukon Child Fitness Tax Credit will provide parents with tax relief of up to $35.20 per child, in addition to federal tax credits.

Liberal Leader Arthur Mitchell said this morning he is supportive of the tax relief initiatives, but would have liked to have seen greater amounts of money returning to Yukoners' pockets.

'I'm supportive of them, but I don't think they go far enough,' he said.

Mitchell said he believes the Liberals' plan, highlighted in their 2006 election platform, was a better deal. That plan called for nearly seven times more money to be returned to Yukoners in the child fitness tax.

The Liberals also called for a $250 payout for each Yukoner, which would have gone further than the Child Tax Credit, he added.

NDP Leader Todd Hardy said early this afternoon he supports the idea of a tax credit but also feels Fentie's initiative does not go far enough to help the people who need it.

'It's nice to see the government doing something for the people this will affect,' he said.

'It's nice to see how it ties in with the federal government's initiatives.'

The Yukon Child Tax Credit, according ot the government, means tax savings of up to $450 a year.

The Yukon Child Fitness Tax Credit, when combined with the federal tax program, will mean parents will get up to $112.70 a year.

Hardy said he is concerned that parents with lower income don't stand to benefit much from the tax relief programs.

Said Fentie: 'These income tax amendments follow those introduced in 2006, which saw increases to several other tax credits.

'They are part of the government's ongoing efforts to reduce taxes for the benefit of Yukoners.'

The amendments to the Income Tax Act will be presented in the fall sitting of the Yukon legislature.

The government has not yet announced when the sitting will begin.