If you have seniors or adults with disabilities living in your home, you may find the federal government’s latest initiative helpful.
The federal government of Canada has introduced a slew of proposals as part of its Budget 2022, including the Multi-generational Home Renovation Tax Credit. The goal of this incentive is to help alleviate the financial burdens of accommodating elderly family members or those living with a disability.
More specifically, the tax credit is designed to provide financial support for constructing additions or renovations to these households. Modifying a home to provide ample and accessible space for these family members can be very expensive, and the new tax credit is meant to help ease these financial requirements.
Let’s dig a little deeper into this new tax credit to see how it may help you, and whether or not you’re eligible.
What is the Multi-generational Home Renovation Tax Credit?
As part of its Budget 2022, the Canadian government has proposed a tax credit that would cover up to $7,500 in costs to build secondary suites or renovate existing homes for senior family members or adults with disabilities.
As of January 1, 2023, the Multigenerational Home Renovation Tax Credit would let households claim a 15% tax credit for up to $50,000 in eligible construction or renovation costs to build a secondary suite.
Who Qualifies For the Multi-generational Home Renovation Tax Credit?
In order to be eligible for the Multigenerational Home Renovation Tax Credit, you’ll need to meet the following requirements:
- Be 18 years of age or older
- Have a qualifying relationship with an individual over the age of 65 or an adult with a disability who lives with you
- Renovations must be made to your current home where you live, and not a separate residence
- Construction costs must qualify as eligible expenses
When Can You Apply For the Multi-generational Home Renovation Tax Credit?
The new Multigenerational Home Renovation Tax Credit is expected to be available in 2023. That means it can be claimed for the 2023 taxation year and in the years following. Until then, Canadians must wait for more details on how to apply.
You can claim 15% of up to $50,000 of qualifying construction or renovation costs, up to a maximum of $7,500.
If you meet the above-mentioned qualifications, you may be eligible to claim the Multi-generational Home Renovation Tax Credit starting in the 2023 tax year. A few thousand dollars back in your pocket can help make your home more comfortable for your family members in need, and more convenient for you.