A renewal aimed at boosting the number of tax credits multigenerational homes Canada is projected to cost the federal government about $44 million over the next five years parliamentary budget officer (PBO).
independent watchdog released its estimate on Wednesday For the Liberal government’s refundable tax credit for multiple generations of a family living together, which came into effect on January 1, 2023.
It allows families to claim 15 percent of up to $50,000 in eligible renovation and construction costs for a second unit in an existing home with a private entrance, kitchen, bathroom and sleeping space.
Canadian census data shows an increase in households with multiple generations of households.
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In making its projections for 2022-27, the PBO used data on the number of beneficiaries of the Home Accessibility Tax Credit, the number of disability tax credit claimants, as well as estimates and projections on the population of persons 65 and older.
The tax credit is set to provide “up to $7,500 in support for the construction of a secondary suite for a senior or adult with a disability.” according to the 2022 federal budget,
To be eligible to apply, the resident of the secondary unit must be a senior relative or family member with a disability. Parents hoping to create an entity for their adult children without any disability are not eligible to avail tax benefits.
“the dwelling unit must be normally inhabited, or reasonably expected to be inhabited, within twelve months following the end of the renewal period,” the federal government says,
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Census data for 2021 from Statistics Canada showed that approximately 2.4 million Canadians – or 6.4 per cent of the total population – lived in multi-generational households.
In Canada, the number of multigenerational households has grown rapidly in recent years – totaling approximately 42,000 in 2021, according to statcan, This is 20 percent more than in 2011.
In 2021, more than half a million Canadian children lived in a multi-generational household, meaning they lived with at least one parent and at least one grandparent, Statistics Canada said in its report released last year.
Canada is facing a housing crisis, with a shortage of both homes and construction workers to build new units.
While material costs and the reliability of supply chains have been major factors affecting the cost and delivery of new housing in Canada in recent years, industry stakeholders are also sounding the alarm bells about the labor crunch in the sector.
Last year, Finance Minister Chrystia Freeland defended the 2022 budget as “Canada’s most ambitious plan ever” to solve the housing crisis.
Freeland said in April 2022, “We need housing that is affordable for everyone, and that means we need to take significant steps to ensure that a whole generation of Canadians can afford to own a home.” Don’t have to pay.”
– With files from Global News’ Craig Lord
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