Building rental housing? Don’t leave money on the table.
New apartment buildings of ten units or more, held as long-term rentals, can get back most or all of the HST, federal and provincial. If excavation started after the date for your province, you may well qualify.
The rebate is new, and it is big
The GST/HST purpose-built rental housing rebate returns the GST, and in Nova Scotia, New Brunswick and PEI the provincial part of the HST as well, on new rental buildings held for long-term rent. Before September 2023 the federal rebate was a small, capped amount that disappeared on higher-value units.
In Nova Scotia and New Brunswick a qualifying build can pay no net HST at all. PEI caps the provincial part at $35,000 a unit.
Check your build in ten seconds
Not sure about one of these? That is exactly what the call is for.
- A new building, an addition, or a non-residential building converted to housing
- At least 10 residential units, with at least 4 that each have a private kitchen, bathroom and living area
- At least 90% of the units held for long-term rental
- Not condominium units, and not a renovation of an existing residential building
- Excavation began after 13 September 2023 (on or after 15 November 2024 for the New Brunswick provincial part)
Six ways builders lose the rebate
The wrong start date
Construction begins when excavation begins. Permits, clearing and demolition do not count.
Condos later
Planning to register the units as condos down the road kills eligibility.
Under 90%
A few owner-occupied or short-term units can push the building under the line.
The two-year limit
The claim has to be filed within two years. Miss it and the money is gone.
Fair market value
The tax and the rebate both work from a fair market value for each unit. Get it wrong and the claim is wrong.
Credits claimed late
HST on construction costs is recovered as you go. Claiming it late, after the building is finished, gets complicated.
Riley handles this one himself
Riley Pohl, ARC’s partner on the tax side, leads our rental rebate work. We confirm eligibility and the dates for your province, gather what the CRA expects to see, work out the fair market values, and file the claim within the deadline.
Your questions, answered.
Do condominium units qualify?
No. Condo units are excluded, even in a building that otherwise looks like an apartment block.
When does construction begin for the rebate?
When excavation for the building begins. Permits, site clearing and demolition do not count.
How long do I have to claim?
Two years from the end of the month the tax became payable. Plan for it well before then.
Not sure if your build qualifies?
Tell us the province, roughly how many units, and when excavation started. We will come back to you and set up a call.
- 01
You send us a note
A couple of lines about the business and what you are dealing with is plenty.
- 02
We come back to you
Usually with a question or two, so the call is not spent on the basics.
- 03
We set up a call
A proper conversation about how the business runs and what your accounting actually needs.
- 04
You get a plan
What we would look after, how it would run month to month, and twelve months of pricing set out up front.
Send us a message
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