Canada Housing Market

The Canadian government has launched a highly beneficial opportunity for citizens to provide the best possible care for their adult relatives at home. The multi-generational home renovation tax credit, which came into effect on January 1st, is designed to support individuals in constructing a secondary suite intended for senior family members or adults with disabilities.

Under this initiative, eligible individuals can benefit from a 15% tax refund on expenses related to building a secondary suite, with a cap of $7,500 or 15% of expenses up to $50,000.

To qualify for the tax credit, the secondary suite must serve as independent accommodation with a separate entrance, bathroom, kitchen, and sleeping area. It should be intended for use by an adult relative over the age of 65 or an adult living with a disability. This includes various family members such as grandparents, parents, children, grandchildren, siblings, aunts, uncles, nieces, and nephews.

It is important to note that the renovated home must either be occupied or reasonably expected to be occupied within 12 months following the completion of the renovations. However, certain expenses such as the purchase of home appliances and costs for housekeeping or other services are not eligible for the tax credit.

The parliamentary budget officer estimates that the implementation of this tax credit will result in a federal government expenditure of approximately $44 million over the next five years. This investment demonstrates the government’s commitment to assisting Canadians in providing the best care possible for their adult relatives in the familiar and supportive environment of their own homes.