Ontario Seniors' Home Safety Tax Credit - Refundable - 2021 & 2022 Only
Ontario Taxation Act, 2007, s. 103.0.3
This refundable tax credit was initially intended to be for the 2021
taxation year, and was
introduced by the Ontario 2020 Budget.
The 2021
Ontario Economic Outlook and Fiscal Review extended this
credit by one year to 2022. This
extension was included in Bill 43.
The intention of the credit is to support seniors who stay in their homes,
by providing a tax credit for renovations or improvements that make their homes
safer and more accessible.
Eligibility
not dependent on income
can be claimed for eligible expenses by
senior homeowners,
senior renters, or
people who live with senior relatives, and are their "qualifying
relation" as described in s. 251(6) or 252(2) of the Federal Income
Tax Act.
s. 251(6) would include individuals connected by blood
relationship, marriage or common-law partnership or adoption.
Blood relationships do not normally include aunts, uncles, nieces,
nephews, or cousins. However, see 252(2)
s. 252(2) includes non-blood relationships, including aunts,
uncles, great-aunts, great-uncles, nieces and nephews, as well as
those of the spouse or common-law partner. See Canada
Revenue Agency S1-F4-C2, paragraphs 2.6-2.15.
the senior must be age 65+ at the end of the taxation year in which
Qualifying Expenditures
Expenses which are paid, or become payable, in 2021 will be eligible, to the
extent that they are for renovations that improve safety and accessibility, or
enable a senior to be more functional or more mobile at home.
A qualifying expenditure is deemed to have been paid on the earlier of the
date on which the expenditure was paid and the date it became payable.
Thus, if the amount became payable in 2020 but is not paid until 2021, it will
not qualify.
Examples:
renovations that permit a first-floor occupancy or secondary suite for a
senior
grab bars and related reinforcements around the toilet, tub and shower
non-slip flooring
additional light fixtures throughout the home and exterior entrances
automatic garage door openers
modular or removable versions of a permanent fixture, such as modular
ramps and non-fixed bath lifts
Certain expenditures are not qualifying expenditures, such as
annual, recurring or routine repairs, maintenance or services
household appliances
electronic home-entertainment devices
financing costs in respect of the qualifying expenditures
costs incurred for the purposes of gaining or producing income from a
business or property
cost of goods or services provided by a person not dealing at arm's length
with the individual, unless the person is registered to collect GST/HST
Tax Credit
25% of up to maximum $10,000 in eligible expenses for a senior's principal
residence in Ontario, resulting in maximum $2,500 credit.
Maximum can be shared by the people who share a home, including spouses
and common-law partners.
The expenses paid are reduced to the extent that they are reimbursed, or
are expected to be reimbursed, by a municipal, provincial or federal
government.
The credit can be claimed if the improvement was made to the senior's
principal residence or to a residence reasonably expected to become the
principal residence of the senior within the 24 months after the end of 2021.
The credit could also be claimed for an individual's share of improvements
done by a condominium corporation or similar body, to property that includes the
senior's principal residence, provided the improvement meets the eligibility
conditions.