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Government Rebates & Credits

Federal Tax Rebates and Credits

1. GST/HST New Housing Rebate

An individual who has a laneway house constructed may be eligible for a GST/HST new housing
rebate if the new home construction is used as primary place (or relation’s) of residence


2. GST/HST New Residential Rental Property Rebate

The GST/HST new residential rental property rebate may be available to an individual who purchases
a newly constructed laneway house from a builder where the house is leased by the individual or to
another individual as a place of residence. 

3. Multigenerational Home Renovation tax credit

Eligible to families wishing to add a secondary unit to their home for the purposes of allowing an
immediate or extended family member to live with them. Families will be able to claim a 15% tax
credit up to $50,000 (max $7500) in renovation and construction costs. 

4. Home accessibility tax credit

Seniors aged 65 years or older, or individuals with a valid disability tax credit that have constructed
their home to make it more accessible might be able to claim the construction expenses. Under this
tax credit, the maximum claim is $10,000 of eligible expenses.

Provincial and Municipal Programs

1.  Ontario: Bill108 More Homes, More Choice Act 2019/Bill23 More Homes, Build Faster Act 2022

Exempted new secondary dwelling units in an ancillary structure from development charges, subject
to certain criteria (must not be the largest unit on the property)

2. Ontario Renovates Program: Municipal Affordable Housing Programs
Home must be valued at or below the Province’s Maximum House value of $470,811. Limited annual
allotment by region (many municipalities have suspended the program).
Halton Region ($50000), Peel Region, City of Hamilton, Wellington County ($5000), Region of
Waterloo, Niagara Region, Simcoe County, offer forgivable loans (max $25000) and grant programs,
typically with a 15-year market rent commitment and income cap.

3. Toronto:  Affordable Laneway Suites Pilot Program

Forgivable loan of up to $50,000 for eligible property owners constructing a laneway suite. The loan
will be forgiven in 15 years if the charged rent does not exceed the City of Toronto average market
rent during the 15-year affordability period.

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