If you are over 65 or eligible to claim the disability tax credit and you make an accessibility, or risk-reducing renovation to your home, you maybe be eligible for the HATC.
The Home Accessibility Tax Credit (HATC) is a non-refundable tax credit first introduced for the 2016 tax year. This credit is designed to help with labour and material expenses incurred for an accessibility based renovation of a home. The credit is a maximum of $1,500 and is calculated as 15% of the qualifying expenses up to $10,000 per year. If the expense qualifies for the HATC and the Medical Expense Tax Credit (METC), both credits can be claimed.
Here are some examples of when the HATC may be successfully claimed or disqualified.
- An individual who claims the disability tax credit has grab bars installed in multiple locations within their home.
- This can be claimed because the individual and dwelling qualify and the work reduces the risk of harm within the home.
- A daughter pays more than half of her 70-year-old father’s living expenses and claims the amount for an eligible dependant on her taxes. The daughter hires contractors to fix rickety steps, which have no railing, at the rear entrance of the father’s house.
- This can be claimed because it assists with accessibility and a reduction of harm, is integral to the home and the daughter is an eligible individual.
- A homeowner rents out their basement and renovates the entrance to make it more accessible for their 67-year-old tenant.
- This will be disqualified because the renovation cannot be claimed on an area of a dwelling that produces income.
For more information concerning HATC eligibility, please visit this CRA website. If you have any questions about the Home Accessibility Tax Credit and if you qualify, please reach out to your Bateman MacKay account manager.
