The Multi-Generation Home Renovation Tax Credit (MHRTC), is a new refundable tax credit that can be claimed on your 2023 Income Tax and Benefit Return.
You can claim this credit for certain renovation expenses to create a self-contained secondary unit. The secondary unit must allow a senior or an adult who is eligible for the disability tax credit to live with a qualifying relative.
You can claim up to $50,000 in qualifying expenditures (incurred Jan 1, 2023 onwards) for each qualifying renovation that is completed. The tax credit is 15% of your costs, up to a maximum of $7,500 for each qualifying renovation.
A “qualifying individual” is:
- 65 years of date or older; or
- 18 years of age or older who is eligible for the disability tax credit
An example of “qualifying eligible expenses” are:
- Goods and services acquired, including work performed by professionals such as electricians, plumbers, carpenters or architects
- Outlays or expenses for permits
- Rental equipment used in the course of the qualifying renovation
Expenses such as annual repair and maintenance, household appliances and financing costs are not qualifying eligible expenses.
Furthermore, expenses that have already claimed under medical expense tax credit and home accessibility tax credit will not qualify and all expenses must be supported by receipts.