- The government of Canada has announced GST/HST relief for builders of new purpose-built residential rental properties.
- Bill C-56, the Affordable Housing and Groceries Act, includes measures to increase the GST rebate on new purpose-built rental housing from 36% to 100%.
- The rebate phase-out for residential units valued over $350,000 will be removed.
- Qualifying new residential units must have at least four private apartments or ten private rooms/suites, with 90% designated for long-term rental use.
- The increased rebate will be available for qualifying new residential unit construction starting on or after September 14, 2023.
- The rebate will not be available for projects commencing after December 31, 2030, and projects must be substantially completed by December 31, 2035.
- Public Service Bodies (PSBs) such as municipalities, charities, universities, and qualifying not-for-profit organizations may now qualify for the new enhanced residential rental housing rebate.
- HST provinces may also offer similar rebates, but their announcements may not align completely with the federal announcement.
Source: dmainc.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
