Tax refund will be for expenses related to building in-home facilities for senior or disabled family members
Canada has launched a new multi-generational home renovation tax credit, which is intended to make it easier for homeowners to shoulder expenses related to building in-home facilities for senior or disabled family members.
The federal government said that it acknowledges renovations, which continue to be a priority among Canadians, as an established way for homeowners to care for their relatives in need.
Homeowners will be able to claim a 15% tax refund on expenses up to $50,000, with a maximum reimbursement of $7,500.
The in-home facility must be a secondary suite, defined as a self-contained housing unit with a separate entrance, kitchen, bathroom, and sleeping area.
The suite must be for a related adult over the age of 65, or a related adult living with a disability. This definition covers grandparents, parents, children, grandchildren, siblings, aunts, uncles, nieces, or nephews.
“The housing unit must be ordinarily inhabited, or be reasonably expected to be ordinarily inhabited, within twelve months after the end of the renovation period,” the federal government said.
The parliamentary budget officer (PBO) has estimated that the project will cost the federal government approximately $44 million over the next five years.
