New suite renovation tax credit launched
January 10, 2023
Canada's new federal Multigenerational Home Renovation Tax Credit (tax credit) came into effect January 1, 2023, to help provide more living space in an existing house.
It provides Canadians with up to $7,500 "in support for constructing a secondary suite for a senior or an adult with a disability to live with family members." Eligible families can claim 15 per cent of a maximum of $50,000 in home renovation and construction costs to build a secondary housing suite.
This tax credit can provide the added financial assistance many households may need to cover costs, according to a government statement.
For people who require some level of care, it can be easier for their families to support them if they all live together in the same home. It also helps to consolidate housing costs to accommodate more than one family—especially given the soaring costs of home prices these days, according to the government report.
To be eligible for the Multigenerational Home Renovation Tax Credit, a homeowner applicant needs to meet the following requirements:
Non-eligible expense examples include furniture, construction and equipment tools, routine repair or maintenance costs, household appliances and devices, and landscaping or security services. Expenses must be supported by receipts.
To qualify for the grant, work must be done by contractors with GST/HST number. Professional work done by electricians, plumbers, architects and carpenters is generally eligible for the claim. If work is done personally by the homeowner, their labour will not be eligible for the tax credit.