Federal and Provincial Home Renovation Tax Credits -> BC Seniors' Home Renovation Tax Credit
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
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:
The renovation must be
The following are examples of eligible expenditures:
Some expenditures that are not eligible for the tax credit:
The refundable tax credit will be claimed when the personal tax return is filed.
Medical Expense Tax Credit
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.
Canada Revenue Agency (CRA) Resources
Information for Residents of British Columbia - search for Home Renovation Tax Credit
BC Government Resources
The legislation can be found in the BC Income Tax Act Part 11 - BC Seniors' Home Renovation Tax Credit.
Revised: October 26, 2023
Copyright © 2002 Boat Harbour Investments Ltd. All Rights Reserved. See Reproduction of information from TaxTips.ca