The provincial government of Ontario has proposed a new refundable tax credit for seniors 65 or older in 2021. It would provide up to $2,500 for eligible home renovations. The intention behind this temporary tax credit is to help seniors stay in their homes longer, especially considering the impact of COVID-19.
The credit would equal 25% of eligible expenses up to $10,000 per principal residence. If there are senior family members living together, the $10,000 can be shared between them. The credit will also be available to people who live with seniors.
To be eligible, expenses would have to be incurred to make the home safer and more accessible for senior occupants and they would have to be paid or become payable in 2021. For installments, the final installment must be paid or become payable before the end of 2021. That means even if you aren’t billed you should pay all installments by the end of the year so that the full amount is eligible for the credit.
Examples of eligible expenses include:
In most cases the expenses would have to be incurred for the taxpayer’s principal residence. However, there may be exceptions for homes that are reasonably expected to be a principal residence by the end of 2023.
There would be no limitation on the credit. This means seniors at any income level could take advantage of the credit. And because it is refundable, you will be eligible and receive the credit, regardless of whether you owe taxes.
This credit is expected to cost $30 million dollars and help 27,000 taxpayers.
For more information on this proposed tax credit, or for advice and help with your taxes please contact us today.