2025-1049301E5 METC - Hyperbaric oxygen chamber & concentrator

Principal Issues:

Whether the amounts paid to acquire 1) a portable oxygen concentrator and 2) a hyperbaric oxygen chamber would qualify as eligible medical expenses for the purposes of the medical expense tax credit (METC).

Position:

1) Yes. 2) Question of fact.

Reasons:

1) Based on the wording of the ITA. The amount paid to acquire a portable oxygen concentrator is considered a medical expense for a patient for the purposes of the METC pursuant to paragraph 118.2(2)(i) ITA. 2) Based on the wording of the ITA and a contextual and purposive analysis. The amount paid to acquire a hyperbaric chamber by a patient is considered a medical expense for the purposes of the METC under paragraph 118.2(2)(k) ITA, as long as it is an equipment necessary to administer oxygen, it is acquired for use by the patient and it is prescribed by a medical practitioner authorized to practise as such.

Author: Lafortune Viger, Éloïse
Section: Subsection 118.2(2) ITA ; Paragraphs 118.2(2)(i) and (k) ITA ; Paragraph 118.4(2)(c) ITA

XXXXXXXXXX                                                                  2025-104930
                                                                                          Éloïse Lafortune Viger

March 25, 2025

Dear XXXXXXXXXX,

Re: Medical Expense Tax Credit – Portable Oxygen Concentrator and Hyperbaric Oxygen Chamber

We are writing in response to your letter dated October 16, 2024, inquiring whether the amounts paid to acquire a portable oxygen concentrator and a hard shell hyperbaric oxygen chamber would qualify as eligible medical expenses under subsection 118.2(2) of the Income Tax Act (the “Act”) for the purposes of the medical expense tax credit (“METC”). We apologize for the delay in our response.

Our Comments

This technical interpretation provides general comments about the provisions of the Act and related legislation (where referenced). It does not confirm the income tax treatment of a particular situation involving a specific taxpayer but is intended to assist you in making that determination. The income tax treatment of particular transactions proposed by a specific taxpayer will only be confirmed by this Directorate in the context of an advance income tax ruling request submitted in the manner set out in Information Circular IC 70-6R12, Advance Income Tax Rulings and Technical Interpretations.

The Canada Revenue Agency’s general views regarding the METC are contained in Income Tax Folio S1-F1-C1, Medical Expense Tax Credit. You can find a Folio online by going to Canada.ca and typing the name of the Folio into the search toolbar.

Medical expenses which are eligible for the METC are limited to those described in subsection 118.2(2) of the Act. If a particular expenditure is not described as an eligible medical expense in subsection 118.2(2) of the Act, or if the conditions under which the expenditure would qualify are not met, the expenditure will not qualify for purposes of the METC, even though the expenditure may have been incurred for medical reasons.

Paragraph 118.2(2)(i) of the Act allows as a medical expense, an amount paid for, or in respect of, various expenditures including an oxygen concentrator for a patient. A portable oxygen concentrator would be included as an oxygen concentrator, and would be an eligible expense under paragraph 118.2(2)(i) of the Act.

Additionally, the amount paid to acquire a hyperbaric chamber by a patient could be considered a medical expense under paragraph 118.2(2)(k) of the Act, as long as it meets the three following conditions:

- It is equipment necessary to administer oxygen;

- It is acquired for use by the patient; and

- It is prescribed by a medical practitioner authorized to practise as such.

Regarding the third condition, pursuant to paragraph 118.4(2)(c) of the Act, where a reference to a medical practitioner is used in respect of a prescription issued by a person for property to be provided to or for the use of a taxpayer, the reference to a medical practitioner is a reference to a person authorized to practise as such pursuant to the laws of the jurisdiction in which the taxpayer resides, of a province or of the jurisdiction in which the property is provided.

We trust that these comments will be of assistance to you.

Yours truly,

Eric Wirag, CPA, CMA
Manager, Tax Credits and Ministerial Issues
Business and Employment Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch

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