TaxTips.ca - Ontario Healthy Homes Renovation Tax Credit, for seniors and people who share a home with a senior relative

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Ontario -> Personal Tax Credits -> Healthy Homes Renovation Tax Credit

Ontario Healthy Homes Renovation Tax Credit - Refundable

Ontario Tax Act, 2007 proposed s. 103.1.1

The Ontario government has proposed a Healthy Homes Renovation Tax Credit which, if passed, will be applicable to eligible expenditures made on or after October 1, 2011. The information below is subject to legislative approval. Bill 2, Healthy Homes Renovation Tax Credit Act, 2011, passed first reading in the Ontario legislature on November 23, 2011.

This refundable tax credit will be available to senior (65 or over) homeowners and tenants, and people who share a home with a senior relative. In order to be eligible, expenses must improve accessibility or help a senior be more functional or mobile at home. The expenses can be for a renovation or alteration of a residence or of the land on which the residence is situated. The residence must be a qualifying principal residence.

A qualifying principal residence of an individual is a residence located in Ontario:

that is, if the individual is a senior at the end of the tax year, the principal residence of the individual at any time during the tax year or a residence that is reasonably expected to become the principal residence of the individual within 24 months after the end of the tax year; or

that is, if the individual is not a senior at the end of the tax year, the principal residence of the individual at any time during the tax year and that is, at the same time, also the principal residence of a qualifying relation of the individual who is a senior at the end of the tax year, or a residence that is reasonably expected to become such a shared principal residence within 24 months after the end of the tax year.

The credit will be claimed on the personal tax return. The maximum credit each year is $1,500, which is calculated as 15% of the maximum eligible expenditures of $10,000. For the 2012 tax year, the $10,000 maximum will apply to expenses paid or payable from October 1, 2011 to December 31, 2012. This will be claimed on the 2012 tax return. To claim the credit, receipts from suppliers and contractors will be required.

Examples of eligible expenditures can be found in the November 23, 2011 News Release.

Tax Tip: Retain your receipts for expenses which are eligible for the Healthy Homes Renovation Tax Credit.

Revised: November 29, 2011

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