Multigenerational Home Renovation Tax Credit
New for 2023, the Government of Canada has introduced its Multigenerational Home Renovation Tax Credit. A renovation will qualify if a secondary suite is added to a principal dwelling if it is used to house a family member over the age of 65, or a family member over the age of 18 with a disability. It will provide a 15% tax credit on eligible expenses of up to $50,000
To be eligible, the secondary suite must adhere to the regulations of the municipality in which it’s located. For Edmonton, Sherwood Park, Fort Saskatchewan, and Leduc, a 600-square-foot basement with one bedroom, one bathroom, and a basic kitchen will typically start at $65,000. This would equate to a $7,500 credit back at tax time.