Substantial Renovation and GST and HST new Housing Rebate

Introduction

If you are an individual who purchased a new home, hired someone to build a home, substantially renovated your home, or leased land for residential rental purposes, you may be eligible for a rebate of the GST/HST. It is the individual who owns the housing who is eligible to claim the rebate, whether this individual carries out the renovation him or herself, or engages a contractor to do the work.

Substantial renovations by homeowners

Major changes have to be made to be considered a substantial renovation. We do not consider renovations or improvements made by homeowners, such as replacing a kitchen, to be substantial renovations.

If your renovation does not qualify as a substantial renovation, you do not qualify for a new housing rebate.

Substantial renovation

A residential complex that has been substantially renovated is generally afforded the same GST/HST

treatment as a newly constructed residential complex, including eligibility for the new housing rebate.

Extensive modifications must be made to meet the definition of substantial renovation.

In a major renovation project, the interior of a building is essentially gutted. Generally, 90% or more of the interior of the existing housing has to be removed or replaced to qualify as a substantial renovation (90% test).

You do not have to remove or replace the foundation, exterior and interior supporting walls, roof, floors, and staircases to meet the 90% test.

Only liveable areas count towards a substantial renovation including finished basements and finished attics. Liveable areas do not include garages or crawl spaces. Work done to partially complete a basement but not make it a liveable basement does not count toward the 90% test.
Pursuant to subsection 123(1) of the Excise Tax Act (the Act), the term “substantial renovation” of a residential complex means:

“The renovation or alteration of a building to such an extent that all or substantially all of the building that existed immediately before the renovation or alteration was begun, other than the foundation, external walls, interior supporting walls, floors, roof and staircases, has been removed or replaced where, after completion of the renovation or alteration, the building is, or forms part of, a residential complex.”

Major addition

To be considered a major addition, the work must be so great that the result is viewed as a newly built house. The addition, by itself, would not be considered to result in a newly built house. Significant physical and functional changes also have to be made to the existing house so that the resulting structure would be seen as a newly constructed house.

The addition should at least double the size of the liveable areas of your existing house, which is absorbed into the new one. An example would be making significant structural changes to the appearance and layout of an existing bungalow and adding a full second story.

Eligibility information

You may be eligible for a new housing rebate for some of the GST/HST paid if you are an individual who:

Purchased new housing or constructed or substantially renovated housing, which could include housing on leased land (if the lease is for at least 20 years or gives you the option to buy the land), for use as your (or your relation’s) primary place of residence;
purchased shares in a co-operative housing (co-op) complex for the purpose of using a unit in the co-op for use as your (or your relation’s) primary place of residence; or
constructed or substantially renovated your own home, or hired someone else to construct or substantially renovate your home for use as your (or your relation’s) primary place of residence.

For more information about the rebate, see Guide RC4028, GST/HST New Housing Rebate.

Basement Flooding Protection Subsidy Program:

Introduction

Basements can flood for many reasons.

While the City of Toronto is working to make improvements to its complex system of underground pipes, sewers and catch basins, these improvements alone cannot completely protect a home from basement flooding.

With the increasingly frequent and severe weather, it is essential that homeowners take the appropriate action to reduce the risk of basement flooding on their own private property.

To assist, the City offers owners of single family, duplex and triplex residential homes a financial subsidy of up to $3,400 per property to install flood protection devices including a backwater valve, a sump pump, and pipeseverance and capping of the home’s storm sewer or external weeping tile connection.

Work that is eligible

A: Back Water Valve

Eligible Work:

Installation of backwater valve
Replacement of existing backwater valve
Installation of alarm for backwater valve

Available subsidy = 80% of the invoiced cost up to a maximum of $1,250 regardless of the number of devices

installed at the property, including eligible labour, materials, permit and taxes.

B: Sump pump

Eligible Work:

Installation of sump pump
Replacement of existing sump pump
Installation of alarm for sump pump
Installation of backup power for sump pump

Available subsidy = 80% of the invoiced cost up to a maximum of $1,750 regardless of the number of devices installed at the property, including eligible labour, materials, permit and taxes.

C: Foundation drain (weeping tile) pipe severance and capping

Eligible Work:

Disconnection of foundation drains (weeping tiles) from the City’s sewer system by severing and capping the underground sewer connection.

Available subsidy = 80% of the invoiced cost up to a maximum of $400 including eligible labour, materials and taxes.

Disconnecting the downspouts from your property’s eavestrough system is not eligible for a subsidy under this program.

For more information about the rebate, and how to apply please see:

Rebate

Home Winter proofing Program – Enbridge Inc.

Introduction:

Take advantage of our free Home Winter proofing Program, keep your home warm and comfortable all winter, and save energy.

The Home Winter proofing program helps eligible low-income Enbridge customers lower their energy costs and make their home healthier, comfortable and energy efficient. For qualifying customers, your home may have free energy efficiency upgrades completed to reduce your energy costs.

The Home Winter proofing Program is absolutely free to all qualifying homes. Enbridge will pay for the cost of the energy efficiency improvements such as insulation and draft proofing measures. We want to help you afford home improvements that will keep you warm and comfortable.

If you qualify, you could receive:

New insulation and draft proofing installed by experienced professionals.
Savings of up to 30% on your energy use — and lower energy bills.

Benefits and Savings

There are many reasons to take part in our Home Winter proofing Program:

Save money: The program can cut your energy use by 30% and lower your energy bills. The greatest efficiency savings are in homes 35 years and older.
Increase comfort: An energy-efficient home has fewer drafts, and lets you control the temperature.
Be healthier: Living in drafty conditions can be hard on your health. Fewer drafts mean a more comfortable home for you and your family.
Protect the environment: The less energy you use, the cleaner the air.
Increase the value of your home: Buyers and tenants like energy efficient homes.

For more information about the rebate, and how to apply please see:

https://www.enbridgegas.com/homes/manage-energy/rebates-incentive-programs/winterproofing/index.aspx

https://www.enbridgegas.com/homes/manage-energy/rebates-incentive-programs/

Home Energy Conservation Program – Enbridge Inc.

Introduction:

Enbridge Gas Distribution is proud to offer the Home Energy Conservation Program again for 2017. Complete with energy expertise and valuable incentives of up to $2,100 to qualified homeowners, this program makes it easy and affordable for you to understand and improve the energy efficiency of your home, lower your energy bills and lessen your home’s impact on the environment.

Use less. Do more.

When your home consumes less energy, it frees up money for other things, like vacations, your children’s education and retirement. That’s why Enbridge Gas Distribution is proud to offer the Home Energy Conservation (HEC) Program. Helping you save money is simply the right thing to do. This program makes it easy and affordable for you to improve the energy efficiency of your home, lower your energy bills and lessen your home’s impact on the environment.

For more information about the rebate, and how to apply please see:

http://knowyourenergyscore.ca/home-energy-conservation/

https://www.enbridgegas.com/homes/manage-energy/rebates-incentive-programs/

SaveONenergy – offered by the Independent Electricity System Operator (IESO)

Introduction:

Making energy-efficient updates such as replacing your furnace or adding weather-stripping to doors and windows can help you save energy and improve comfort.

SaveONenergy – a program offered by the Independent Electricity System Operator (IESO) and delivered through local utilities – provides rebates, resources and tips to help consumers save money, save energy and stay comfortable.

Learn more about these programs at saveONenergy or contact your local utility.

Many of Ontario’s electricity and natural gas utilities also offer incentives to help you save energy and save money on your electricity bill. Contact your local electricity or natural gas provider to learn more.
RECEIVE UP TO $650 IN INCENTIVES WHEN YOU PARTICIPATE IN THE HEATING AND COOLING PROGRAM
Get started today and you could save up to $325 a year in energy costs when you upgrade to ENERGY STAR certified heating and cooling systems.

Eligibility information

The HEATING & COOLING INCENTIVE is available for residents and businesses (and businesses with residential-type systems) in Ontario who have purchased and installed* eligible central heating or cooling equipment through a participating contractor.
You must be a resident of Ontario.
All services (including purchase and installation) must be performed by a participating contractor of the HEATING & COOLING INCENTIVE program

For more information about the rebate, and how to apply please see:

https://saveonenergy.ca/Consumer.aspx

Toronto Hydro – Heating and Cooling Incentive

Introduction:

Get rebates when you upgrade your HVAC system. The latest systems are quieter, more reliable, and can save you up to $325† a year on energy costs.

What are the incentives?

Get $250 when you install a new high-efficiency furnace. It must be equipped with an Electronically Commutated Motor (ECM)
Get up to $400 when you install a new high-efficiency central air conditioner
- Get $250 when you install an ENERGY STAR® certified system (minimum 14.5 SEER and 12 EER rating), or
- Get $400 when you install a stand-alone CEE “Tier 2” level system (minimum 15 SEER and 12.5 EER rating)

For more information about the rebate, and how to apply please see:

http://www.torontohydro.com/sites/electricsystem/electricityconservation/residentialconservation/pages/heatingandcoolingincentive.aspx

Hydro One – Heating and Cooling Incentive

Introduction:

Don’t put off furnace troubles any longer – upgrade with rebates for high-efficiency systems. The latest models are quieter, more reliable and use less energy

Incentive:

Get $250 when you install a new high-efficiency furnace. It must be equipped with an Electronically Commutated Motor (ECM)
Get up to $400 when you install a new high-efficiency central air conditioner
- Get $250 when you install an ENERGY STAR® certified system (minimum 14.5 SEER and 12 EER rating), or
- Get $400 when you install a stand-alone CEE “Tier 2” level system (minimum 15 SEER and 12.5 EER rating)

For more information about the rebate, and how to apply please see:

http://www.hydroone.com/MYHOME/SAVEENERGY/Pages/HeatingCoolingIncentive.aspx

Sources:

1/ Government of Canada, Canada Revenue Agency

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/hsng/rbts/nwhsng/menu-eng.html

2/ Government of Canada, Canada Revenue Agency

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/hsng/sbstntlrnvtns-eng.html

3/ Government of Canada, Canada Revenue Agency, Public Affairs Branch

http://www.cra-arc.gc.ca/E/pub/gm/b-092/README.html

4/Basement Flooding Protection Subsidy Program – Basement Flooding – Stormwater Management | City of Toronto

http://www1.toronto.ca/wps/portal/contentonly?vgnextoid=30ee7c6a9967f310VgnVCM10000071d60f89RCRD

5/Enbridge Gas Distribution