If you completed a home renovation this past year, or are looking to complete a home renovation in the coming year, be sure to include home renovation tax credits in your budget. There are a variety of provincial and federal tax credits available and if your project is eligible it can help you financially. Read on to learn more about the different tax credits available for home renovations.
Home Accessibility Tax Credit
The Home Accessibility Tax Credit is available to people with disabilities and/or over the age of 65. In order for the renovation to be eligible, the project must be related to improving the accessibility of the home. This can include a project that would reduce the risk of moving around, in, and out of the home. Depending on what was expensed throughout the project, you may be able to claim up to $1,500. There are budget proposals to increase the expense limit, which would allow you to claim up to $3,000. Learn more about Home Accessibility Tax Credit to claim it!
Canada Greener Homes Loans & Grants
The Canada Greener Homes Loans & Grants are available to help Canada strive towards its 2030 climate change goals. Homeowners who are making ‘greener’ choices when it comes to their homes often feel more comfortable in their homes and save money in the long run. The eligible projects include insulation, windows, doors, and sealing just to name a few. Should your pre- and post-retrofit evaluation pass, you could be eligible for grants ranging from $125-$5000, up to $600 towards the total costs of your evaluation, and interest-free loans up to $40,000. Please refer to the official Canada Greener Homes Grant website for more information on eligibility criteria.
Provincial Home Renovation Tax Credits
Depending on your location, there may be Provincial Home Renovation Tax Credits available. Varying from tax credits for seniors undergoing renovations, home safety renovations, green renovations, first-time home buyers, and other tax refunds on renovation expenses. Be sure to check your provincial renovation tax credit eligibility if you have completed a project or are looking to undergo renovations in the future.
Additionally, you may be eligible for the new housing rebate program if you bought a new home, built a new home, or underwent substantial renovations in your current home. To see if your purchase qualifies click here.
Claim it for next year: Multigenerational Home Tax Benefit
Many Canadians are facing the same issue of rising housing costs, which is why multigenerational homes are becoming increasingly popular. These renovations allow multiple generations to reside on the same property. Right now the proposal for the multigenerational home tax benefit would allow a family to claim up to $7,500 if they build a secondary suite for a senior or an adult with a disability.
Head to your provincial page to learn how to claim home renovation tax credits. And for more information check out the Canada Revenue Agency website. If you’re planning on undergoing any home renovation in the next year, be sure to account for your eligible benefit.