You Can Claim Up To $7.5K From The New Multigenerational Home Renovation Tax Credit (MHRTC)

The Multigenerational Home Renovation Tax Credit (MHRTC) is a newly launched refundable tax credit available starting from the 2023 tax year. 

This credit is designed to assist eligible individuals in offsetting renovation expenses incurred while creating a self-contained secondary unit within their homes. 

The purpose of this secondary unit is to accommodate either a senior or an adult who qualifies for the disability tax credit, and they must be living with a qualifying relative.

Here’s how it works

For each qualifying renovation completed, you can claim up to $50,000 in eligible expenditures. The tax credit is calculated at 15% of your qualifying costs, with a maximum credit of $7,500 available for each claim you meet the criteria for.

This innovative tax credit is aimed at promoting multigenerational living arrangements and making it more affordable for families to create suitable living spaces for seniors or individuals with disabilities. 

Visit the CRA website for information on the expenses you can claim, eligibility and application process.

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