If passed, the Bill will create a new permanent, refundable personal income tax credit for seniors who modify their homes to make them more functional and accessible. The credit would be worth up to $1,500 each year, calculated as 15 per cent of up to $10,000 in eligible home renovation expenses. For more details on the Bill, see the Ontario government website.
OREA is supportive of the Bill because it helps Ontario home owners. Specifically, the tax credit will improve the quality of homes, increase their resale value and enhance the homeowner’s life style. Moreover, the tax credit incentive will encourage homeowners to use professional contractors and therefore curb underground renovation activities. Finally, the tax credit is expected to create 10, 500 new jobs each year which is important to a healthy housing market in Ontario.
“OREA encourages the creation of a healthy homes renovation tax credit because it will help seniors to remain home owners,” said Ms. Verge in her presentation. “In doing so, this tax credit is helping to support stronger people, stronger communities and a stronger Ontario.”
During its 2011 provincial election “Home Ownership Matters” campaign, OREA advocated for the creation of a home renovation tax rebate available to all homeowners. Even though the Healthy Home Renovations Tax Credit Act, 2012 is narrower in scope, it is still a prudent first step towards a larger rebate program.