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BC Home Renovation Tax Credit
For Seniors and Persons With Disabilities - Refundable
The Home Renovation Tax Credit, worth up to
$1,000 per year, is available to seniors, or family members sharing
their home, whether they rent or own. Started in the 2012 tax year,
the maximum credit is $1,000 annually, calculated as 10% of eligible
permanent home renovation expenditures, for costs incurred on or after
April 1, 2012.
As per the BC 2016 Budget,
the tax credit is expanded to include persons with disabilities who are
eligible to claim the federal disability tax credit, and to family members
living with those individuals. This applies to
expenditures made on or after February 17, 2016.
Information below will be updated re persons with
disabilities when further detail is available.
An "eligible individual", who is able to
claim the tax credit, is an individual who
was resident in BC on the last day of the taxation
year, and
was a senior, or a qualifying relation of a senior, at
the end of the taxation year in which a qualifying expenditure was paid in
respect of a qualifying renovation to the individual's qualifying principal
residence.
A "senior" is an individual who is 65 years of age
or older at the end of the taxation year.
A "qualifying relation" of a senior is a child,
grandchild or other family member living with the senior, according to the
information on the BC website (see link below). This would include
parents, grandparents, children, grandchildren and other descendants. It
would also include brothers, sisters, aunts, uncles, nieces and nephews
(including in-laws), but likely not cousins or more distant relatives.
Generally, an expenditure will qualify for the tax
credit if it is part of a renovation or alteration of a "qualifying
principal residence" of a senior or of the land on which the
residence is situated, if it is undertaken:
to enable the senior to gain access to, or to be mobile
or functional within, the residence or the land, or
to reduce the risk of harm to the senior within the
residence or the land, or in gaining access to the residence or the land
The renovation must be
of an enduring nature and integral to the residence or
the land on which the residence is situated, or
related to the purchase and installation of a modular or
removable version of an item of a type that can otherwise be installed as a
permanent fixture to the residence or the land, including modular ramps and
non-fixed bath lifts.
The following are examples of eligible expenditures:
upgrades to improve accessibility, including
handrails, grab bars, walk-in bathtubs, wheel-in showers, and raised
toilets
wheelchair ramps, lifts and elevators
motion-activated lighting
certain renovations to allow a first-floor
occupancy or secondary suite for a senior relative
widening passage doors
lowering existing counters/cupboards
installing adjustable counters/cupboards
light switches and electrical outlets placed in
accessible locations
door locks that are easy to operate
lever handles on doors and taps, instead of knobs
pull-out shelves under counter to enable work from
a seated position
non-slip flooring in the bathroom
a hand-held shower on an adjustable rod or high-low
mounting brackets
additional light fixtures throughout the home and
exterior entrances
swing clear hinges on doors to widen doorways
creation of knee space under the basin to enable
use from a seated position (and insulation of any hot-water pipes)
relocation of tap to front or side for easier
access
hands-free taps
touch-and-release drawers and cupboards
Some expenditures that are not
eligible for the tax credit:
general maintenance, including roof repairs,
windows, flooring, insulation and painting
standard appliances, including side swing ovens and appliances with
front located controls
services, including home care, housekeeping and
gardening
landscaping or redecorating
installing new windows or regular flooring
installing heating or air conditioning systems
replacing insulation
equipment for medical monitoring and home security
wheelchairs and walkers
vehicles adapted for people with mobility limitations
fire extinguishers, smoke alarms, carbon monoxide detectors
The refundable tax credit will be claimed when the
personal tax return is filed. If all or part of the expenses are
also eligible for the medical expense tax credit, they can be
claimed for both the seniors' renovation tax credit and the medical
expense tax credit.
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