{"id":21584,"date":"2023-03-31T13:00:00","date_gmt":"2023-03-31T17:00:00","guid":{"rendered":"https:\/\/www.zoocasa.com\/blog\/?p=21584"},"modified":"2023-03-29T12:23:48","modified_gmt":"2023-03-29T16:23:48","slug":"home-renovation-tax-credit-canada","status":"publish","type":"post","link":"https:\/\/www.zoocasa.com\/blog\/home-renovation-tax-credit-canada\/","title":{"rendered":"What is the Home Renovation Tax Credit in Canada?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">There are many tax credits, grants and rebates available for Canadian homeowners. More specifically, homeowners can take advantage of the home renovation tax credit, which allows them to deduct a portion of their renovation expenses from their taxes. So how can you claim this credit? First, you should check if you meet certain conditions to be eligible. Here\u2019s what else you should know about when filing for a tax credit:\u00a0\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is a Tax Credit?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Tax credits allow Canadians to deduct a specific amount from their taxes each year. They can generally be carried forward if they aren\u2019t used up by the end of the tax year and most programs will allow you to share the credit with a partner\/spouse.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>Enjoying our content? Subscribe to our free<\/em><\/strong><a href=\"http:\/\/zoocasa.com\/newsletter\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><em> weekly newsletter<\/em><\/strong><\/a><strong><em> to get Canadian real estate market insights, news, and reports straight to your inbox.<\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Home Accessibility Tax Credit<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The Home Accessibility Tax Credit (HATC) is a non-refundable tax credit to Canadian homeowners who make renovations designed to improve the living conditions and increase the accessibility for a senior or a person with a disability. Things such as wheelchair ramps, grab bars and widened doorways.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The HATC allows claims up to $10,000, but the government is currently working on increasing the annual expense limit to $20,000, which would provide a tax credit of up to $3,000.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A qualifying renovation must meet one of these conditions:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The renovation must be designed (and have an end goal) of allowing the individual to be more mobile\/functional within the residence<\/li><li>The renovation for the intended individual must reduce the risk of harm within the residence, or in gaining access to the residence<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Multi-Generational Home Renovation Tax Credit<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The Multi-Generational Home Renovation Tax Credit, which took effect at the beginning of the year, is designed to assist with expenses relating to building a secondary suite for a senior family member, or an adult with a disability. The tax credit will provide a 15% tax refund on expenses (up to $50,000) to a maximum of $7,500. The maximum refund amount can be used toward the cost of permit fees and renovation goods and services.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Read: <\/strong><a href=\"https:\/\/www.zoocasa.com\/blog\/tax-refund-tips\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>5 Tax Refund Tips for Homeowners<\/strong><\/a><\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Secondary suites are becoming more popular as it helps ease the burden of families and provides a viable living option for Canadians&#8217; aging population. The tax credit financially helps homeowners better utilize single-family homes while gaining the emotional benefits of living with, and caring for, family members.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To qualify for the tax credit:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The secondary suite must be for a related adult over the age of 65, or an adult (over the age of 18) living with a disability.<\/li><li>The secondary suite must be a self-contained housing unit that has a separate entrance, bathroom, kitchen and bedroom.<\/li><li>The renovation must have a reasonable timeline, and must be inhabited within 12 months after completion of the renovation.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s important to note that some expenses do not qualify for the credit, such as the purchase of home appliances and costs for housekeeping or other services. People interested in applying can do so on their 2023 income tax return next year.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Canadian Provinces Are Left Out?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Currently, New Brunswick, Prince Edward Island, Alberta, and all territories do not offer an individual home renovation tax credit. However, the Building Industry &amp; Land Development Association Alberta (BILD Alberta), which represents a mix of home renovators, builders and land developers, is currently advocating to introduce a Home Renovation Tax Credit.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Read: <\/strong><a href=\"https:\/\/www.zoocasa.com\/blog\/median-income-2023-canada\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Where a Median-Income Household Can Afford to Buy a House in Canada in 2023<\/strong><\/a><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">The Next Steps<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If you&#8217;re looking for a way to make improvements in your home and save money on taxes, then renovating could be the solution. Knowing if these conditions apply to you is one of the best ways to get the most out of your future tax filings. But, remember, not all renovation expenses are eligible, so it\u2019s important to do your research and to keep receipts of all your associated costs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Home Renovation Tips&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For other home renovation tips, we have you covered! Looking to renovate your basement? Here\u2019s all you need to know before starting a <a href=\"https:\/\/www.surex.com\/blog\/what-you-need-know-doing-basement-renovations\" target=\"_blank\" rel=\"noreferrer noopener\">basement renovation<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Are you renovating your home and wondering about insurance? We\u2019ve got all you need to know about <a href=\"https:\/\/www.surex.com\/blog\/insurance-for-homes-under-construction-or-renovation\" target=\"_blank\" rel=\"noreferrer noopener\">insurance for homes under renovation<\/a> (or construction).<\/p>\n\n\n<div class=\"cta\">\n<div class=\"cta-left\">\n<div class=\"cta-title\">Need help finding your dream home?<\/div>\n<div class=\"cta-body\">Contact us today to talk to a Realtor in your area<\/div>\n<\/div>\n<div class=\"cta-right\"><a href=\"https:\/\/www.zoocasa.com\/sell-with-zoocasa\"><button class=\"cta-button\">Talk To Our Experts<\/button><\/a><\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are many tax credits, grants and rebates available for Canadian homeowners. More specifically, homeowners can take advantage of the home renovation tax credit, which allows them to deduct a portion of their renovation expenses from their taxes. So how can you claim this credit? First, you should check if you meet certain conditions to [&hellip;]<\/p>\n","protected":false},"author":125,"featured_media":21587,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":{"subtitle":"","format":"standard","video":"","gallery":"","source_name":"","source_url":"","via_name":"","via_url":"","override":[{"single_blog_custom":"","sidebar":"","second_sidebar":"","share_position":"","share_float_style":"","post_date_format":"","post_date_format_custom":"","post_reading_time_wpm":"","zoom_button_out_step":"1","zoom_button_in_step":"1","number_popup_post":"1"}],"image_override":[{"single_post_thumbnail_size":"","single_post_gallery_size":""}],"trending_post_position":"","trending_post_label":"","sponsored_post_label":"","sponsored_post_name":"","sponsored_post_url":"","sponsored_post_logo":"","sponsored_post_desc":""},"jnews_primary_category":{"id":""},"footnotes":""},"categories":[58,1111,44],"tags":[],"class_list":["post-21584","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-affordability","category-canada","category-taxes"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is the Home Renovation Tax Credit in Canada? | Zoocasa Blog<\/title>\n<meta name=\"description\" content=\"There are many tax credits available for Canadian homeowners. 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