The renovation tax credits most homeowners never claim

Multigenerational Home Renovation Tax Credit (MHRTC)

A refundable federal credit of 15% on up to $50,000 of qualifying expenses, worth up to $7,500, for creating a self-contained secondary unit (private entrance, kitchen, bathroom, sleeping area) so a senior (65+) or an adult eligible for the Disability Tax Credit can live with a qualifying relation. Refundable means it pays out even if you owe no tax. One claim per eligible person's lifetime, claimed on line 45355 in the renovation-completion year.

The classic qualifying project is exactly what we build as legal basement suites and in-law additions: if the unit is for a qualifying family member, the credit effectively discounts the build.

Home Accessibility Tax Credit (HATC)

A non-refundable federal credit of 15% on up to $20,000 of eligible expenses per year, worth up to $3,000, for renovations that make a home safer or more accessible for a senior or DTC-eligible person: ramps, grab bars, walk-in tubs, widened doorways, stair modifications. Expenses that qualify for both HATC and the medical-expense credit can often be claimed under both.

"I tell every in-law-suite client the same thing: the CRA will pay for a chunk of this build, and your receipts are the application. Keep every invoice, make sure the contract describes the self-contained unit clearly, and hand the folder to your accountant. It's the easiest $7,500 in construction."

Mitch Fraser, owner, Ontario Contracting Co.

How to keep your claim clean

• Written contract and itemized invoices from the contractor (also your CPA protection; see the contracts hub)
• Permits on file: an unpermitted suite invites CRA and municipal questions at once; the permit path is in the Brantford suite-rules guide
• Paid receipts dated in the claim year, with the completion year driving the MHRTC claim
• Cash jobs disqualify themselves: no receipts, no credit, one more reason the cash discount is no discount