The Canadian government has recently shared the new Multigenerational Home Renovation Tax Credit program as part of their 2022 budget and efforts to create sustainable and affordable housing for Canadians.  

What is it?

The Multigenerational Home Renovation Tax credit is a new program that is helping provide financial support to households that currently house more than one generation. This tax credit will allow for accommodations and improvements to families who find themselves in these particular living situations of multiple generations under one roof. 

Beginning in 2023, families eligible will be able to claim a 15% tax credit (on maximum $50,000) on qualifying renovation and construction costs. This tax credit will also offer as much as $7,500 to help cover and support the build of a secondary suite that is specifically for a senior or an adult with disabilities. 

Multiple generations with varying needs living under one roof can result in added financial stress and pressure to many. The purpose of this new program is to help compensate and offset the costs of multiple people with varying needs living together, and to improve overall quality of living for all. 

Eligibility Requirements:

To be considered eligible for this tax credit the following criteria must be met:

• Construction costs must be deemed eligible.
• A qualifying relationship with an individual over the age of 65 who lives with you must be proven.
• The tax credit must be used towards the existing home in which you live 

Who is eligible:

The following are eligible for the new tax credit:

• 18 years of age 
• An individual who meets the above listed criteria (or their spouse/common-law partner)
• More than one eligible person within the home may claim this tax credit, however the total amount claimed per household must not exceed the $50,000 limit. 
• Only one qualifying renovation can be claimed per eligible individual.  

Claim Examples:

Prior to renovations be sure to get a complete breakdown of qualifying expenses. Note that there are some limitations and restrictions to what may be purchased under this new credit.

The following are some examples of approved expenses:

• Renovation permits
• Building materials
• Labour costs
• New fixtures 
• Equipment rentals 

This program has been designed to help create more comfortable and appropriate living conditions for all. If this is you or someone you may know, considering looking into this new tax credit starting next year.