Thinking of renovating your home? In addition to improving the home’s value, a home renovation can increase your comfort and enjoyment of your home as well as help increase the efficiency of the home (ex. Insulate walls in basement to help with temperature control or replacing outdated lightbulbs with more energy-efficient options.
Whatever the reason, one thing’s for sure – home renovations can add up. Fortunately, the federal and provincial governments offer Canadians with tax rebates for some qualified home renovations. Here’s a few that we’d like to highlight:
Home Accessibility Tax Credit
This tax credit helps offset the cost of making homes more accessible for people with disabilities as well as the elderly. An example of this might be adding a wheelchair ramp. According to the website, “A qualifying individual may have only one eligible dwelling at any time” and “the total eligible expenses for all such eligible dwellings of the qualifying individual cannot be more than $10,000.” You can read more about the Home Accessibility Tax Credit here.
Multigenerational Home Renovation Tax Credit
This credit will be available to families who want to renovate their homes to add extra accommodation for either a senior or disabled relative to live with them. Due to factors such as tighter housing supply, high prices and inflation overall, multigenerational housing has more appeal among Canadians than in previous years. This new tax credit is expected to be available starting in 2023, with more details on how to apply coming soon. But if you’d like to get a sneak peak, H&R Block talks about it on their blog here.
Tax credits aren’t always straightforward, so if you plan on taking advantage of a federal or provincial tax credit, consult with a professional to make sure you’re covering all the bases.