Ontario Seniors' Home Safety Tax Credit - Refundable - Temporary

Wednesday Dec 30th, 2020

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Ontario Taxation Act, 2007, s. 103.0.3

This refundable tax credit is for the 2021 tax year only and was introduced by the Ontario 2020 Budget.

The intention of the credit is to support seniors who stay in their homes, by providing a tax credit for renovations or improvements that make their homes safer and more accessible.

Eligibility

 
  • not dependent on income

 
  • can be claimed for eligible expenses by

 

* senior homeowners,

 

* senior renters, or

 

* people who live with senior relatives and are their "qualifying relation" as described in s. 251(6) or 252(2) of the Federal Income Tax Act.

 

-  s. 251(6) would include individuals connected by blood relationship, marriage or common-law partnership or adoption.  Blood relationships do not normally include aunts, uncles, nieces, nephews, or cousins.  However, see 252(2)

 

-  s. 252(2) includes non-blood relationships, including aunts, uncles, great-aunts, great-uncles, nieces, and nephews, as well as those of the spouse or common-law partner.  See Canada Revenue Agency S1-F4-C2, paragraphs 2.6-2.15.

 
  • the senior must be age 65+ at the end of the taxation year in which 

Qualifying Expenditures

Expenses which are paid, or become payable, in 2021 will be eligible, to the extent that they are for renovations that improve safety and accessibility or enable a senior to be more functional or more mobile at home.

A qualifying expenditure is deemed to have been paid on the earlier of the date on which the expenditure was paid and the date it became payable.  Thus, if the amount became payable in 2020 but is not paid until 2021, it will not qualify.

Examples:

 
  • renovations that permit a first-floor occupancy or secondary suite for a senior

 
  • grab bars and related reinforcements around the toilet, tub, and shower

 
  • non-slip flooring

 
  • additional light fixtures throughout the home and exterior entrances

 
  • automatic garage door openers

 
  • modular or removable versions of a permanent fixture, such as modular ramps and non-fixed bath lifts

Certain expenditures are not qualifying expenditures, such as

 
  • annual, recurring, or routine repairs, maintenance, or services

 
  • household appliances

 
  • electronic home-entertainment devices

 
  • financing costs in respect of the qualifying expenditures

 
  • costs incurred for the purposes of gaining or producing income from a business or property

 
  • cost of goods or services provided by a person not dealing at arm's length with the individual, unless the person is registered to collect GST/HST

Tax Credit

 
  • 25% of up to maximum $10,000 in eligible expenses for a senior's principal residence in Ontario, resulting in maximum $2,500 credit.

 
  • Maximum can be shared by the people who share a home, including spouses and common-law partners.

 
  • The expenses paid are reduced to the extent that they are reimbursed, or are expected to be reimbursed, by a municipal, provincial, or federal government.

The credit can be claimed if the improvement was made to the senior's principal residence or to a residence reasonably expected to become the principal residence of the senior within the 24 months after the end of 2021.

The credit could also be claimed for an individual's share of improvements done by a condominium corporation or similar body, to property that includes the senior's principal residence, provided the improvement meets the eligibility conditions.

 

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