OTTAWA –
The federal government is offering a new tax credit to make it easier for Canadians to care for elderly relatives in their own homes.
The Multigenerational Home Renovation Tax Credit went into effect Jan. 1 for expenses related to building an additional apartment for a family member who is elderly or disabled.
The credit will provide a refund of 15 percent tax on expenses up to $50,000 up to a maximum of $7,500.
The secondary apartment must be for a related adult over the age of 65 or living with a disability, including a grandparent, parent, child, grandchild, sibling, aunt, uncle, niece or nephew.
The secondary apartment must be a self-contained living unit that includes a separate entrance, bathroom, kitchen and sleeping area.
In addition, the home being renovated must be occupied or reasonably expected to be occupied within 12 months of the completion of the renovation.
Some expenses, such as the purchase of household appliances and expenses for housekeeping or other services, are not eligible for credit.
The Parliamentary Budget Officer estimates the tax credit will cost the federal government $44 million over the next five years.
The credit was among a number of new housing affordability measures promised by the Liberals in the last election and included in Budget 2022 last April.
This report by The Canadian Press was first published on January 11, 2023.
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