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 8 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.
8Types of Tax Credits Available in Ontario
1. Home Renovation Savings Program (formerly HER+)
The Home Efficiency Rebate Plus, run by Enbridge, is now replaced with the Home Renovation Savings Program. Delivered by Enbridge Gas and Save on Energy with support from the Ontario government, this program supports energy-efficient upgrades across Ontario. It includes rebates on key improvements that lower your energy use and costs.
Rebates you may qualify for:
- Upgrades that require a home energy assessment (complete two or more):
- Insulation (attic, wall, foundation, exposed floor) – up to $7,700
- Windows and doors – $100 per rough opening
- Heat pump water heaters – $500
- Air sealing – up to $250
- Upgrades that do not require an assessment (complete one or more):
- Heat pumps – up to $12,000
- Solar panels and battery storage – up to $10,000
- Attic insulation – $1,250, increased from $1,000
- Smart thermostats – $100, increased from $75
- Appliances – up to $200
Homeowners find and apply for the Home Renovation Savings Program at Save On Energy, submit receipts and details online, and follow eligibility steps for rebates on energy-efficient upgrades.
Funding for this program is not guaranteed year to year, and past Ontario rebate programs have closed with little notice. Confirm the program is still accepting applications before you sign a contract or purchase equipment.
2. Multigenerational Home Renovation Tax Credit (MHRTC)
The MHRTC is a refundable credit for homeowners building a self-contained secondary unit for a senior or an adult eligible for the disability tax credit. You can claim up to $50,000 in qualifying expenses for each completed renovation, with a maximum credit of $7,500.
The unit must have its own entrance, kitchen, bathroom, and sleeping area. Refundable means you receive the money even if you owe no tax. Claim it on line 45355 of your return for the year the renovation is completed. MHRTC Details.
3. Kingston-Frontenac Renovates
This program helps low-to-moderate income homeowners in Kingston and Frontenac County complete essential repairs and accessibility modifications.
Funding is awarded on a first-come, first-served basis, so early applications have the best chance. Eligibility criteria and application forms are available through the City of Kingston housing department. Confirm the current intake window and funding amounts before you plan your project. Program Details.
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 90% or more of the interior of the existing house has been removed or replaced.
Projects that can meet this threshold include gut renovations, extensive structural rebuilds, and conversions of non-residential buildings. The amount is calculated based on expenses, and homeowners can apply through the Canada Revenue Agency.
5. Home Accessibility Tax Credit (HATC)
HATC offers up to $20,000 in eligible expenses for seniors or individuals with disabilities to make their homes more accessible. The credit is calculated at the lowest federal personal income tax rate, which works out to a maximum credit of $3,000. 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. Energy Affordability Program Zero Incentives
Ontario’s Energy Affordability Program helps income eligible homeowners and renters reduce electricity use at no cost. The program provides free upgrades such as energy efficient lighting, insulation, smart thermostats, and in some cases cold climate heat pumps. Eligibility depends on household income and utility account status. Applications run through Save on Energy.
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.
7. Additional Residential Unit (ARU) Incentive Program
Kingston homeowners adding a secondary suite can access forgivable loans covering up to 50% of project cost, capped at $40,000 for detached units or $30,000 for interior units. A $5,000 accessibility grant is also available. You must apply and receive approval before completing the project. Funding is first-come, first-served. ARU Incentive Program.
8. Insured Mortgage Refinancing for Secondary Suites
This option is financing rather than a credit, though it helps homeowners fund an addition. Lenders and insurers allow refinancing of up to 90% of your post-renovation home value, to a maximum of $2 million, amortized over as long as 30 years. The funds must go toward creating a secondary suite on your property. Speak with your lender or mortgage broker to confirm your eligibility.
Programs That Are No Longer Available
- Canada Greener Homes Grant
- Canada Greener Homes Loan
- Home Efficiency Rebate Plus (HER+)
- GreenON Rebate Program
- Canada Secondary Suite Loan Program
- Ontario Seniors’ Home Safety Tax Credit
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!
