MULTIGENERATIONAL HOME RENOVATION TAX CREDIT

The Multigenerational Home Renovation Tax Credit (MHRTC), claimed on line 45355, is a refundable credit introduced in 2023 for the cost of creating a secondary unit so that a senior or an adult with a disability can live with a family member.

AMOUNT

• 15 percent of up to $50,000 of qualifying expenditures, for a maximum credit of $7,500 per qualifying renovation.

• Only one renovation can be claimed per qualifying individual over their lifetime.

REQUIREMENTS

• A qualifying individual: a senior (65 or older at the end of the year the renovation is completed) or an adult (18 or older) eligible for the disability tax credit.

• A qualifying relation: a parent, grandparent, child, grandchild, sibling, aunt, uncle, niece or nephew (or their spouse) of the qualifying individual.

• The renovation creates a self-contained secondary unit with a private entrance, kitchen, bathroom and sleeping area.

• All necessary permits must be obtained, and the qualifying individual (or relation) must intend to occupy the unit within 12 months after the renovation is completed.

• Claimed in the year the renovation is completed.

ELIGIBLE AND INELIGIBLE COSTS

• Eligible: labour and professional services, building materials, fixtures, equipment rentals and permits.

• Ineligible: furniture, appliances, routine maintenance, financing costs, and work done by a related person unless that person is GST/HST registered.