- Bill C-56, the Affordable Housing and Groceries Act, has been introduced in Parliament with proposed changes to the Excise Tax Act and Competition Act.
- The bill aims to increase the GST rental rebate on new purpose-built rental housing from 36% to 100% with no phase-out thresholds or limits on the rebate. Public service bodies will also be entitled to the rebate, benefiting universities, municipalities, public colleges, charities, and non-profit organizations.
- The enhanced rebate will apply to qualifying residential units where construction begins after September 13, 2023, but before 2031 and is completed before 2036.
- Further legislative changes are expected to clarify details, including regulations referenced in Bill C-56. Other provincial rebates may also be available.
Source EY
