Effective Jan. 1, Ottawa is once again offering a home improvement tax credit. This time, it’s for Canadians who renovate to provide a secondary suite for family members who are seniors (over the age of 65), or adults with a disability. The 15 percent credit applies to expenses on such projects up to $50,000, with the maximum credit amounting to $7,500.
The secondary suite must be a self-contained unit with a separate entrance, bathroom, kitchen and bedroom. In addition, the home being renovated must be occupied or “reasonably expected” to be occupied within a year after construction is finished. The federal government estimates that the tax credit will cost it $44 million over five years.
