Enhanced New Housing Rebates (February 17, 2012)
ENHANCED NEW HOUSING REBATES
B.C. intends to enhance the existing B.C. new housing rebates. The enhanced rebates will be available with respect to newly constructed or substantially renovated homes purchased or constructed as a place of primary residence where the HST becomes payable on or after April 1, 2012 and before April 1, 2013. As a result of this enhancement, eligible purchasers of new homes with a purchase price of up to $850,000 will be entitled to receive a rebate of 71.43 per cent of the provincial component of the HST paid up to a maximum of $42,500. For a new home with a purchase price of $850,000 and above, the purchaser will be entitled to the maximum rebate of $42,500.
This enhanced rebate represents a 60 per cent increase in the maximum rebate currently available. The enhanced B.C. new housing rebates will be available for the provincial component of the HST paid for all types of housing that are currently eligible for the existing B.C. new housing rebates. Qualifying housing will generally include the following types of newly constructed or substantially renovated homes used as a primary place of residence by an individual or relation of the individual:
• new homes (e.g., single-unit homes,residential condominium units and duplexes) purchased together with land;
• new homes purchased together with leased land;
• new mobile homes and floating homes;
• new homes acquired through the purchase of qualifying shares in a housing coop; and
• homes newly constructed or substantially renovated by the owner who is an individual (i.e., owner-built housing).
The enhanced B.C. new housing rebates will be subject to the same eligibility conditions as the existing B.C. new housing rebates and will be administered by the CRA. Similar to the current B.C. new housing rebates, the purchaser will be entitled to receive the enhanced rebate either by filing a rebate application directly with the CRA or by the builder paying or crediting the enhanced rebate amount at the time of purchase (in which case the builder files the rebate application). However, only one rebate application can be sent to the CRA in respect of a home by the purchaser or the builder, as the case may be. For further details, see the “Mechanism for claiming the Enhanced New Housing Rebates” section.
New housing rebate – purchases of new homes together with land An enhanced B.C. new housing rebate will be provided for purchases of new homes, including single-unit houses, residential condominium units and duplexes together with land from a builder where the home is purchased by an individual for use as a primary place of residence of the individual or a relation of the individual and the HST becomes payable in respect of the purchase on or after April 1, 2012 and before April 1, 2013. The enhanced B.C. new housing rebate will be 71.43 per cent of the provincial component of the HST paid for the home, up to a maximum rebate of $42,500. There will be no phase-out of this rebate, such that homes priced above $850,000 will qualify for the maximum rebate of $42,500.
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Posted on Feb 21, 2012
