Renovations that qualify under the Home Accessibility Tax Credit

As we age or face physical challenges, modifying our homes to make them more accessible to accommodate our changing needs becomes crucial. The Home Accessibility Tax Credit (HATC) aims to help alleviate some of the financial burden associated with making these necessary home improvements.

What is the Home Accessibility Tax Credit (HATC)?
Who is eligible?
Who is a qualifying individual?
Who is an eligible individual?
Eligibility summary
What type of housing is eligible?
What type of renovations are eligible?
Examples of renovations that qualify
Which expenses are eligible?
Which expenses are not eligible?
How much can I claim?
Can I combine the HATC with other credits?
Which supporting documents do I need?
How do I claim the HATC?

What is the Home Accessibility Tax Credit (HATC)?

The HATC is a tax credit designed to help seniors or people with disabilities renovate their homes to make them more accessible.

Who is eligible?

To be eligible for the HATC, you must be a qualifying individual OR an eligible individual making a claim for a qualifying individual (see below).

Who is a qualifying individual?

A qualifying individual is someone who is 65 years or older at the end of the year OR who is eligible for the disability tax credit (DTC) at any time in the year.

Who is an eligible individual?

An eligible individual is the spouse or designated caregiver of a qualifying individual.

Eligibility summary

Basically, if you are over 65 or disabled, you, or the person who provides care for you, are most likely eligible for the HATC.

What type of housing is eligible?

An eligible housing unit (house, condo, apartment, etc.) must be located in Canada and be inhabited by the qualifying individual and owned by them, their spouse, or their designated caregiver.

What type of renovations are eligible?

To be eligible, the renovation must be permanent and allow the qualifying individual to gain accessibility, mobility or functionality within the dwelling (includes land) OR reduce the risk of harm to the qualifying individual within, or when gaining access to, the dwelling.

NOTE An item that you buy that will not become a permanent part of your dwelling is generally not eligible.

Examples of renovations that qualify

Examples of renovations that may qualify for the HATC include, but are not limited to:

• Installing walk-in bathtubs or showers with grab bars
• Lowering countertops and sinks for wheelchair accessibility
• Adding higher toilets or toilet safety frames
• Lowering kitchen counters and cabinets
• Installing pull-out shelves or drawers for easier access
• Adding accessible sinks and faucets
• Widening doorways to accommodate wheelchairs
• Installing lever-style door handles
• Installing non-slip flooring
• Removing carpeting and installing smooth, hard surfaces that are easier to navigate
• Building wheelchair ramps at entrances
• Installing handrails on ramps and steps
• Paving or leveling pathways to ensure smooth access
• Adding railings along outdoor walkways
• Installing stair lifts or elevators
• Adding handrails on both sides of staircases
• Installing motion-activated lighting in key areas
• Adding additional lighting in hallways, stairs, and entrances
• Installing smart home devices that assist with daily living (automated lighting, smart locks, voice-activated controls)
• Installing wider and more accessible doorways
• Lowering thresholds to remove trip hazards
• Converting a ground floor room into a bedroom and bathroom
• Adding an accessible shower on the main floor
• Assistive Equipment Installation
• Installing ceiling track systems for lifting and transferring
• Adding floor lifts or platform lifts
• Lowering electrical outlets and switches for easier access
• Installing remote control systems for lighting and appliances
• Adding smoke and carbon monoxide detectors with accessible alerts
• Installing fire sprinklers or suppression systems

Which expenses are eligible?

Firstly, the expenses must be for work performed and goods acquired in the tax year. Next, you need to determine who performed the work.

Work performed by you

If you do the work yourself, eligible expenses include:

• building materials
• fixtures
• equipment rentals
• building plans
• permits

NOTE The value of your labour or tools cannot be claimed as an eligible expense.

Work performed by a family member

If your family member is registered for GST/HST, and all other conditions are met, the expenses will be eligible for the HATC. If they are not registered, the expenses will not be eligible.

Work performed by professionals

Generally, paid work completed by a professional (such as an electrician, plumber, carpenter or architect) qualifies as an eligible expense.

Which expenses are not eligible?

The following expenses are not eligible for the HATC:

• annual, recurring, or routine repairs or maintenance
• household appliances
• electronic home-entertainment devices
• housekeeping, security monitoring, gardening, outdoor maintenance, or similar services
• financing costs for the qualifying renovation
• renovation incurred mainly to increase or maintain the value of the dwelling
• amounts paid to acquire a property that can be used independently of the qualifying renovation

How much can I claim?

For 2022 and subsequent taxation years, you can claim 15% of total expenses, up to a maximum of $20,000 per year.

EXAMPLE If you hire a contractor to add handrails and ramps to your house and the total cost is $30,000, you can claim $4,500 ($30,000 x 15% = $4,500).

Can I combine the HATC with other credits?

Yes you can. The Medical Expense Tax Credit (METC) is commonly combined with the HATC, so if you have eligible HATC expenses that also qualify as an METC expense, you can claim both.

Other possible credit combinations include:

• Caregiver credit
• Disability tax credit
• Eligible Dependant tax credit
• Medical Expense Tax Credit

Which supporting documents do I need?

Eligible expenses must be supported by acceptable documentation, such as agreements, invoices, and receipts. They must clearly identify the type and quantity of goods bought or services provided, including, but not limited to:

• information that clearly identifies the vendor/contractor, their business address, and, if applicable, their GST/HST registration number
• a description of the goods and the date when they were bought
• the date when the goods were delivered (keep your delivery slip as proof) or when the work or services were performed
• a description of the work done, including the address where it was done
• the amount of the invoice
• proof of payment (receipts or invoices must show that bills were paid in full or be accompanied by other proof of payment, such as a credit card slip or cancelled cheque)
• *a statement from a co-operative housing corporation or condominium corporation signed by an authorized individual identifying:
  • the amounts incurred for the renovation or the alteration work
  • your part of these expenses if the work is done for common areas as a condominium owner
  • information that clearly identifies the vendor/contractor, their business address and, if applicable, their GST/HST registration number
  • a description of the work done or services performed and the dates when the work was done or the services were performed

*if applicable

How do I claim the HATC?

To claim home accessibility expenses, complete the chart for line 31285 using your Federal Worksheet and enter the result on line 31285 of your return. We recommended contacting an accounting professional for assistance with this.

Questions

If you have any questions about this article, need help with the Home Accessibility Tax Credit, or want to know more about the services we offer, please contact one of our Tax Experts or complete the contact form below.