What tax credits are there for adding a suite or making a BC home accessible?

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A family adding a suite for a senior or adult with a disability can claim a federal credit on up to $50,000; BC and Canada also credit accessibility work for seniors. Two federal credits and one provincial one pay back part of renovating a home for a senior or a person with a disability. They're claimed on the income tax return, after the work, and none of them replaces the permits the work needs. Look up the address or PID on PlaceDossier to see the record for that lot. A suite for family: The federal Multigenerational Home Renovation Tax Credit pays back part of a renovation that creates a secondary unit, with its own private entrance, kitchen, bathroom and sleeping area, so that a qualifying individual can live with a relative (Income Tax Act s. 122.92 (1)). A qualifying individual is 65 or older by the end of the year the work ends, or an adult entitled to the disability tax credit; the relative is an adult parent, grandparent, child, grandchild, sibling, aunt, uncle, niece or nephew of them or their spouse (s. 122.92 (1)). It has applied to work paid for since January 1, 2023 (S.C. 2022, c. 19, s. 19 (2)). How much: The credit is the lowest federal tax rate, 14% from 2026, on up to $50,000 of qualifying spending, and it's refundable (ss. 122.92 (3), 248 (1), 117 (2) (a)). Only one such renovation counts in the qualifying individual's lifetime, and the $50,000 is shared among everyone who claims it (s. 122.92 (4)). It's claimed for the year the renovation ends (s. 122.92 (3); the CRA's Schedule 12). Where the suite goes: The Act speaks of a secondary unit within the dwelling, and the dwelling includes the land under it and next to it, up to half a hectare or more where needed (s. 122.92 (1)). Whether a separate building on the lot counts is unclear (our reading): ask the CRA or an accountant. The unit must also meet any local rules for a secondary suite, and both people must live there, or expect to within 12 months of the work ending (s. 122.92 (1)). Accessibility work: The federal Home Accessibility Tax Credit pays the same rate on up to $20,000 a year of lasting work that makes a home safer or easier to get into and around for someone 65 or older or entitled to the disability tax credit, a non-refundable credit (s. 118.041 (1), (3)). BC's credit: BC's Home Renovation Tax Credit for Seniors and Persons with Disabilities pays back 10% of up to $10,000 a year, at most $1,000, of work to the home or its land that improves access, mobility or function or reduces the risk of harm for a BC resident 65 or older or entitled to the disability amount, or a relative sharing their home; the home must be their principal residence, or become one within 24 months, and the work's main purpose can't be to raise its value (Income Tax Act (BC) ss. 141, 142 (1); the Province's page). It's refundable (s. 147) and claimed on Schedule BC(S12) with form BC479 (the Province's page). What doesn't count: Routine repairs and upkeep, household appliances and electronics, housekeeping, gardening and security services, financing costs, and work by a relative or other non-arm's-length person who isn't registered for GST don't count; permits and equipment rental can (s. 122.92 (1); BC's s. 141 is much the same). The same expense can't be claimed under both federal credits (the CRA's page). BC's suite loans have ended: BC Housing's Secondary Suite Incentive Program, a forgivable loan of up to $40,000 for a rented suite, took no applications after March 30, 2025; loans already made are honoured and are registered on title for 5 years, forgiven a fifth each year while the suite is rented within its limits (the Province's news release of March 19, 2025; BC Housing's page). A house you buy may carry one. What it means for a buyer: The credits are a return on work done to your own home after you buy, not a reason to pay more for it. The suite still needs the zone's leave and a building permit, and a title search will show any suite loan the seller still owes on.

What tax credits are there for adding a suite or making a BC home accessible?

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