All information is subject to legislative approval.
Who would be eligible for the credit?
The credit would be available to senior home owners and tenants, 65 years of age or older by the end of the year for which the credit is claimed.
Family members who share a home with a senior relative would also be able to claim the proposed credit.
What kinds of renovations would be eligible for the credit?
Examples would include ramps, stair lifts, walk-in bathtubs, and hand rails in corridors — renovations that improve accessibility or help a senior move more easily around their home.
There will be a more complete list of expenses available once the bill is introduced.
The credit would spur demand in the construction sector supporting about $800 million in home renovation activity and about 10,500 jobs annually.
How would renovations be claimed?
Eligible renovation expenses would be claimed on the Personal Income Tax return. For the 2012 tax year only, expenses paid or payable from October 1, 2011 to December 31, 2012 would be claimed on the 2012 income tax return.
Receipts from suppliers and contractors would not have to be submitted with the income tax return. However, they should be kept in case the Canada Revenue Agency (CRA) asks for them.
What if the receipt is lost or the renovation was paid for with cash?
Receipts would be necessary to help ensure that amounts are reported by vendors for tax purposes.
Any installations paid with cash would qualify for the proposed credit as long as a valid receipt is produced if requested by the CRA.
Why don’t you extend the credit to all people with disabilities? They also have difficulties with accessibility and mobility at home.
Support is currently provided to people with disabilities through the Assistive Devices Program. It provides consumer-centred support and funding to people with long-term disabilities living independently through access to over 8,000 assistive devices responsive to their individual needs.
Other programs that specifically help people with disabilities stay in their homes include:
- the Ontario and federal Medical Expense Tax Credits for eligible expenses on home modifications;
- Canada Mortgage and Housing Corporation’s Residential Rehabilitation Assistance Program for Persons with Disabilities;
- the Ontario March of Dimes Home and Vehicle Modifications Program, established by the Ontario Ministry of Community and Social Services;
- sales tax exemptions on the purchase of certain medical and assistive devices; and
- property tax exemptions for certain alterations that help people with a disability.
