If you are based in British Columbia and need to make modifications to your home to help you or a family member age in place, you’ll be pleased to learn that you may be able to use your tax credit to help fund these types of projects. Scroll down to find out if you’re eligible to receive either the B.C. Senior’s Home Renovation Tax Credit or Canada’s federal Home Accessibility Tax Credit.
The B.C. Senior’s Home Renovation Tax Credit
The B.C. Senior’s Home Renovation Tax Credit was launched by the British Columbian Liberal government in 2012 to help homeowners reduce the cost of purchasing equipment such as stair lifts, vertical platform lifts, grab bars and super poles, custom hand-rails and more. The tax-credit can also be applied to the cost of home modifications, such as the installation of custom ramps.
To qualify for this credit, the applicant must be a resident of British Columbia AND a senior, OR a family member living with a senior, and the renovation, installation, or equipment must be made to the home the applicant primarily lives in. This extends to non-seasonal mobile homes.
The renovation, installation, or equipment bought must help a senior by either improving their access to their home or land, improve their mobility or function within the home or land, or reduce the risk of harm within the home or land. Any renovations/installations/equipment made to increase the value of the residence are ineligible.
Some eligible equipment or installations include walk-in tubs and showers, adjustable counters and cupboards, non-slip flooring, hands-free lighting, grabs bars and hand rails, raised toilets, and much more. Contact us for more information on renovations and equipment eligible under the B.C. Senior’s Home Renovation Tax Credit, or check out the BC Government’s website.
Canada’s Federal Home Accessibility Tax Credit
Canadian’s aged 65 who spend up to $10,000 per year on home renovations may be eligible for the Federal Home Accessibility Tax Credit.
Introduced in April 2015, the new ‘Home Accessibility Tax Credit provides financial support to seniors and persons with a disability who spend up to $10,000 per calendar year to modify their homes.
To qualify, an applicant must be aged 65 years or older (after the end of 2015), or be eligible for the Disability Tax Credit. Eligible renovations must be designed to improve the safety and/or accessibility of the home.
The credit is calculated as 15 percent of eligible renovation expenses, meaning that if individual claims $10,000 on eligible improvements, the reduction in payable federal taxes would equal $1,500.
The credit may also extend to caregivers or individuals that spend money on home modifications for their spouse or common-law partners, or for an eligible or infirm dependent.
To qualify for the federal tax credit, any renovation or equipment must assist individuals to function within or gain access to their own residence, and reduce the risk of harm at home. This can include the installation of walk-in showers and tubs, grab bars, additional lighting fixtures, automatic door openers, and more. Contact us for a full list of eligible modifications.
If you are making changes to your home to help you or someone else age more comfortably, make sure you read the above information carefully to see if you’re eligible for tax credit. If you are unsure and would like further help, contact us directly, we’d be glad to help.