As the demand for residential elevators and custom home elevators continues to grow in Canada, many homeowners are exploring the benefits of adding this feature to their homes. Whether for accessibility, aging in place, or simply enhancing convenience and luxury, home elevators are becoming a popular choice. However, the cost of installation can be a significant investment. Fortunately, there are government incentives and tax credits available that can help offset these expenses. Let’s explore what options are available for Canadian homeowners.
1. Accessibility Renovation Tax Credit (Home Accessibility Tax Credit)
The Canadian government offers the Home Accessibility Tax Credit (HATC), which is designed to support homeowners who make renovations to improve accessibility. This includes the installation of residential elevators or custom home elevators for individuals with mobility challenges or seniors who wish to age in place.
- What’s Covered?
The HATC provides a non-refundable tax credit of up to 15% of eligible expenses, with a maximum annual claim of 10,000.Thismeansyoucouldreceiveupto1,500 in tax credits. - Eligibility:
To qualify, the elevator must be installed to improve accessibility for a senior or a person with a disability. The home must be the primary residence of the individual benefiting from the renovation.
2. Provincial and Territorial Programs
In addition to federal incentives, some provinces and territories offer their own programs to support accessibility renovations. For example:
- Ontario’s Home and Vehicle Modification Program (HVMP):
This program provides financial assistance for home modifications, including the installation of custom home elevators, for individuals with disabilities. - Manitoba’s Home Renovation Tax Credit for Seniors and Persons with Disabilities:
This provincial tax credit offers up to $1,500 for accessibility-related renovations, including elevators.
It’s important to check with your local government or a tax professional to determine what programs are available in your area.
3. Medical Expense Tax Credit (METC)
If a residential elevator is deemed medically necessary for a resident with a disability or chronic illness, the cost may qualify under the Medical Expense Tax Credit (METC). This credit allows you to claim a portion of medical-related expenses, including home modifications, on your income tax return.
- Eligibility:
A medical practitioner must certify that the elevator is required for the individual’s health and mobility.
4. Energy Efficiency Incentives
While not directly tied to accessibility, some custom home elevators are designed with energy-efficient features. In certain cases, these upgrades may qualify for energy efficiency rebates or incentives offered by provincial or municipal programs. Be sure to inquire with your elevator provider about energy-efficient models and potential savings.