Are there any Tax Benefits, Rebates or Grants Available for Renovating my Home?
Q: Are there any tax benefits, rebates or grants available for renovating my home?
A: Renovating your home is one of the wisest investments you can make. Carefully planned renovations not only make your home more comfortable, but they can increase its value too.
Of course, renovations can be expensive, but there are all kinds of programs that will help foot the bill!
Here are some of the best tax benefits, rebates and grants you can get for renovating in Canada, compliments of our friends at HGTV.
Available all throughout Canada:
Home Accessibility Tax Credit
The Home Accessibility Tax Credit is a federal, non-refundable tax credit for renovations that make a home more accessible for people who are disabled or over 65 years old. It only applies to renovations that will become permanent features of the home and will allow the person to move more freely within the home while reducing the risk of injury. A bigger, wheelchair friendly bathroom may qualify, for instance. You can get a tax reduction of up to $1,500.
GST / HST New Housing Rebate
With the GST/HST New Housing Rebate, substantial renovations to your home can earn you rebates. Mobile homes and floating homes qualify too, so you can find inspiration in revived RVs and worry less about taxes. Once the renovations are completed, your home should still have a market value of less than $450,000, though.
GST / HST New Residential Rental Property Rebate
If you’re planning on renovating a home so that you can rent it out, you may qualify for the GST/HST New Residential Rental Property Rebate. Once the renos are done, the property should be less than $450,000 in value, or less than $112,500 for land or a site in a trailer park.
CMHC Green Home
Those small upgrades that will make your home more energy efficient will save you money on your electric bill, but they also mean savings on your mortgage insurance premiums. With CMHC Green Home, you just need to use CMHC-insured financing to renovate for energy efficiency. If you renovate up to Energy Star standards, you can get a 15% rebate. If you go up to R-2000 standards, your rebate can be as much as 25%.
Genworth Canada Energy Efficient Housing Program
If you use Genworth Canada to finance renovations that will make your home more energy efficient, you can get up to a 25% refund on your premium. You need to get energy evaluation reports before and after the renovations to prove that you will indeed save on energy once you’ve replaced those windows or added that smart thermostat, though.
Available only in Ontario:
Save on Energy Home Assistance Program
If you live in Ontario and can’t afford upgrades to make your home more energy efficient, the Save On Energy Home Assistance Program can help you with the cost of things like Energy Star certified light bulbs and appliances, high-efficiency shower heads and aerators in your faucets, insulation and weatherstripping. To qualify, you need to meet the maximum income criteria or have received assistance through public programs like Ontario Works.
For more savings in provinces outside of Ontario, read the full HGTV article here.