From simple home remodeling to installing energy-saving solar panels, Ontario has some tax credit options to make renovation more affordable for homeowners. In this guide, we’ve included 7 known tax credits by the Ontario and federal government to help you get started with your research. Before taking any decision, do your due diligence to maximize the benefits.
7 Types of Tax Credits Available in Ontario
1. Home Energy Conservation (HEC) Program
The HEC Program, run by Enbridge, offers Ontario homeowners up to $1600 in incentives to improve home energy efficiency. It covers a range of updates, including HVAC systems and energy-efficient appliances.
To qualify, homeowners must first sign up on the Enbridge website, undergo a pre-energy audit, complete at least two qualifying renovations, and then have a post-audit to verify a 15% increase in efficiency. Successful applicants receive a rebate to offset the audit costs. More about the HEC Program.
2. Save-on Energy Rebates
This program provides rebates for purchasing ENERGY STAR certified appliances, ideal for homeowners planning kitchen or basement renovations. Rebates vary, with up to $4,000 available for significant HVAC upgrades.
Homeowners can apply through the Save on Energy website or contact their energy advisor to discuss eligibility and incentives. Learn more here.
3. Residential Protective Plumbing Program (RPPP) – Ottawa Only
The RPPP offers over $2,000 in rebates for flood prevention equipment like backwater valve installation and sump pumps. Eligibility is primarily for homes built before specific dates (2004 for storm sewer services, 2012 for sanitary sewer services). The process involves an application, a CCTV inspection, a city review, and installation of protective devices. RPPP details here.
4. HST New Housing Rebate
This rebate offers up to $30,000 and is for those undertaking major renovations, home additions, or converting non-residential properties into homes. The eligibility criteria include renovations that substantially change your home, which typically means the renovation cost is more than 90% of the property’s value before renovations.
Some changes you can get this rebate for include adding new rooms, complete kitchen overhauls, or major structural changes. The amount is calculated based on expenses, and homeowners can apply through the Canada Revenue Agency. HST Rebate Info.
5. Home Accessibility Tax Credit (HATC)
HATC offers up to $10,000 for seniors or individuals with disabilities to make their homes more accessible. Eligible renovations include ramps, bathroom modifications, elevators, and stairlifts. It covers both the equipment and its installation costs. To access this credit, visit the HATC Program Website.
6. Home Appliance Tax Credit
Introduced in 2021, this program offers a 15% tax credit for home appliance repairs, covering expenses up to $500. It aims to reduce waste and support homeowners with appliance maintenance costs. Home Appliance Tax Credit details.
7. Canada Greener Homes Grant and Loan Programs
This initiative supports homeowners looking to make their homes more energy-efficient. It offers up to $5,000 in grants for retrofits, up to $600 towards the total costs of your pre and post retrofit EnerGuide evaluations, and an interest-free loan of up to $40,000. Apply here for the program.
For you, as a new homeowner, these credits can be a game-changer in managing your renovation costs. Prioritize projects that will add to your living standards. Keep all your receipts and documents organized for quickly applying for these credits and rebates.
Your Kingston Contractor is a trusted major home renovation company serving Kingston and nearing cities. We specialize in major home renovations and always ensure timely completions, so our clients can apply for the rebates. To book a free consultation, reach out to our team!
