A new $7,500 tax credit has been proposed by the Canadian government for 2024 with the express purpose of assisting low-income households in financing necessary home improvements. In order to ensure that more Canadians can afford essential home modifications, this tax credit is intended to offer financial help to individuals who are most affected by growing living expenses. This explains who is eligible, how the program operates, and how to take full advantage of this chance.
Home Renovation Tax Credit
You can deduct some of your renovation costs from your taxes by using home improvement tax credits. They are an excellent method to lower the expense of your remodeling project. To get the credit, though, you have to fulfill certain eligibility restrictions. To find out more about your home renovation tax credits and how they can help you save money on your improvements, keep reading.
Eligibility Criteria Home Renovation Tax Credit
- The property undergoing renovations must be owned by the applicant.
- Renovation Goal: A secondary apartment, such as a suite with an entry, kitchen, bathroom, and sleeping area, should be created for an eligible family member.
- Family Members Who Qualify: The credit helps with renovations for family members who are 65 years of age or older or who are eligible for the Disability Tax Credit because they have a disability and are at least 18 years old.
- The applicant must be a parent, grandparent, child, or sibling of the person for whom the modifications are being performed.
Check Canada HRTC Payment Amount 2024
When renovations are finished, the qualified individual can get up to $50,000 for qualifying expenses during the tax year. A total of $50,000 can be claimed when two or more eligible people split the cost of the remodeling. Therefore, the House Renovation Tax Credit is 15%, with a maximum refund of $7,500 to the eligible individual. Only the tax credit is refundable if the taxes exceed the claim amount.
