Enhanced GST Rental Housing Rebate Proposed
The federal government has proposed an enhanced GST Rental Rebate for newly-constructed rental housing. If passed, the existing rebate will be increased from 36% to 100% for eligible buildings, a move likely to be matched provincially for the Ontario portion for the HST. The aim is to boost construction, by collectively eliminating the tax for developers of eligible residential rental buildings.
Projects with at least 4 private apartments or 10 private rooms are eligible. Construction must begin between September 14, 2023 and December 31, 2030, and be completed by December 31, 2035. The existing GST Rental Rebate eligibility conditions still apply.