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Understanding the Healthy Homes Renovation Tax Credit

In the fall of 2012, the province of Ontario introduced the Healthy Homes Renovation Tax Credit, a refund designed to help seniors convert their homes to accommodate mobility limitations. Here’s everything you need to know about the credit:

What is the tax credit?

The tax credit is a permanent refundable income tax credit. Qualifying taxpayers can claim up to $10,000 of eligible home improvements on their income tax return per year, and will receive 15% of the eligible expenses in a refund. Eligible home improvements costing $10,000 would return $1,500, while mobility renovations costing $5,000 would return $750. This is a yearly tax credit, meaning you can receive a refund of up to $1,500 for every year that eligible renovations are conducted going forward.

What is the purpose of the tax credit?

The purpose of the tax credit is to help seniors and their families make their homes safer, more accessible, and more accommodating toward mobility limitations. These renovations will allow seniors to live at home for longer instead of moving into a care facility.

Who is eligible?

Seniors who are residents of Ontario and 65 years or older by the end of the year are eligible to receive the tax refund. Family members who live with seniors 65 years or older also qualify for the tax refund. Income level has no effect on eligibility.

What are eligible expenses?

Eligible expenses generally include renovations completed for the purpose of improving safety and accessibility. These projects can include walk-in bathtubs, wheel-in showers, grab bars, handrails, non-slip flooring, widened doorways, lowered counters, wheelchair ramps and lifts, and motion-activated lighting. Speak with your mobility renovation contractor in advance to make sure planned work is eligible.

What are ineligible expenses?

Renovations that improve the value of the home without directly improving safety and accessibility are not eligible for the tax credit. Examples of this work include plumbing and electrical, roof repairs, window replacements, and updates to the HVAC system. Assistive devices ranging from wheelchairs and walker to fire extinguishers and home safety monitoring do not qualify. Finally, services like landscaping, housekeeping, and home care also are not eligible. Talk with your mobility renovation contractor before any work begins to clarify if the work is eligible for the tax credit or not.

Take advantage of the Healthy Homes Renovation Tax Credit today. Call RenosGroup.ca for a free in-home consultation today to start the process of making your home safe and mobility friendly.