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Wastewater Systems - What Are the Residential Tax Credits?

By Editorial Team

Updated on January 14, 2025

Installation of an Ecoflo septic tank with wastewater treatment system in a residential project.

Is your house not connected to a collection system, municipal sewer system, or sewage treatment system? That can only mean that you need another system to treat your wastewater, removing any concentration of impurities and other discharges produced. Said system is a septic tank, which is installed underground, not far from your house. To fulfill its vital role for health and environmental purposes, a septic tank must remain in good condition and compliant with current standards.

  • When should you change your septic tank?

  • How much does it cost? 

  • Are there grants, tax credits, or other financial assistance for replacing a septic tank?

These are just some of the questions answered in the paragraphs below.

Wastewater Treatment Systems: Updating Residential Installations

Septic system installation with PVC pipes and gravel for drainage.

Source : Les excavations Michaud et fils inc.

Unbeknownst to you, your septic installation might be completely outdated. Many municipalities across Quebec have recently sent homeowners a warning notice cautioning residents about the necessity of maintaining a compliant wastewater system. Province-wide, the Regulation respecting [wastewater] disposal systems for isolated dwellings outlines a homeowner’s legal obligations regarding the matter.

If you have received a warning notice, your septic installation will be inspected by an industry professional. The inspector will advise you as to the state of your septic tank and whether it should be replaced.

Following the reception of the inspection report, you will have sufficient time to commission the necessary work (between 1–5 years, depending on the region). Should you fail to comply with the request received, you risk being severely penalized as releasing domestic wastewater into the environment is prohibited (unless it was treated appropriately). Non-compliance fines range from $1,000 to $500,000.

Lastly, we won’t go into further detail about sewage treatment systems, including commercial facilities and residential and industrial installations, but note that they also must be updated when necessary. 

The Process of Replacing a Septic Tank: Stages of Waste Removal and Filtration

Installation of a precast concrete septic tank with lifting chain.

Source : Terrassement-expert.ca

If you’re a homeowner and have a septic tank lying beneath your property (depending on the availability of land), you have to be aware of the different warning signs as to whether your installation is defective before it’s too late. A malfunctioning septic tank can lead to serious damage and may be a health hazard for residents.

Why Is Maintaining a Wastewater System Important?

Domestic wastewater is a human and environmental health hazard. For example’s sake, if your septic tank overflows or cracks, harmful gases and dangerous bacteria may drip onto your grass and seep deep beneath the water table, polluting bodies of water nearby, further putting you at risk to E.coli exposure, as well as other hazardous micro-organisms that could make you sick.

For more information, refer to the Wastewater Systems Effluent Regulations, published by the Government of Canada.

What Are the Warning Signs That Your Septic Tank Needs to Be Replaced?

Monitor the following:

  • The water table overflows with contaminated and smelly water

  • You found algae in nearby surface waters

  • All household drains are slow-draining (dishwasher, sink, washer, toilet, bathtub, etc.)

  • You’re hearing strange noises (gurgling, bubbling)

  • The grass surrounding your septic tank is suddenly very green

  • There’s a strong smell coming from the septic tank

  • Your septic tank needs more frequent pumping

  • Your septic tank is old (over 30 years old)

If you have received a municipality-issued notice, comply with the details inside and carry out the necessary repairs. At times, sticking to a better maintenance routine or changing certain parts is enough, others, a complete septic tank system overhaul is needed.

With What Type of Septic Tank Should You Replace Yours?

Do you think your current septic tank needs to be replaced? Below is a list of criteria to consider when selecting the best model for your needs:

  • Size of dwelling

  • Number of dwellers

  • Occupancy rate (summer/winter house only used weekends, full-time residence)

  • Type of soil in which the septic tank will be installed

Septic installations come in several models. In most cases, a basic septic tank will meet household needs. However, some homeowners prefer a more sophisticated system, ensuring a better, high-quality treatment level.

You can hire a technician for soil testing purposes (or to perform a land characterization study), and then design a site plan, which can also be done by an engineer. These plans are meant to assess the different layout options and possibilities available depending on where you reside. Only then will you be able to finalize your decision.

How Much Does It Cost to Replace a Septic Tank? 

It depends on the selected septic tank, but it typically ranges between $10,000 and $45,000, with some models costing up to $60,000.

The latter includes sewage treatment system installation. Other fees to consider include soil testing, installation inspection, and septic tank maintenance.

For more information: How Much Does a Septic Tank Cost?

Financial Assistance for Septic Tank Installations

Financial planning with a calculator, coin stacks, and budget documents.

Given that the hefty price tag of a septic tank replacement forced many homeowners to delay work, the Government of Quebec proposed financial assistance to that effect—the Tax Credit for the Upgrading of Residential [Wastewater] Treatment Systems.

Who Qualifies for the Residential Wastewater Installation Tax Credit?

All people residing in Quebec on December 31 of the year when the request was submitted and have entered into an agreement with a qualified contractor to undertake work related to a wastewater treatment system for a qualifying residence (main residence or 4-season cottage).

This tax credit concerns work done between 2017 and 2027.

Check out the Government of Quebec website for more detailed information.

How Much Funding Can You Get?

Homeowners can receive 20% of the expenses incurred for the work commissioned. The credit only applies to the part of the expenses exceeding $2,500.

The maximum tax credit that a homeowner can receive is $5,500 per qualifying residence, meaning $30,000 is the maximum funding.

Steps for Obtaining a Tax Credit

First, the work commissioned has to be completed by a qualified contractor with an RBQ 2.4 licence (private sewerage system). Once the work is done, the hired contractor has to provide you with an attestation form. 

Then, fill out the tax credit request form, adding it to your tax returns.

Where Does Municipal or On-Site Sewage System Standards Apply?

Drainage work around a single-family house with PVC pipe installation.

Source : Excavations Collins

The governments of Quebec and Canada have made wastewater protection a priority. Pan-Canadian and provincial strategies have been introduced with said goal in mind. That said, a lot of money was invested in the last few years to improve individual and municipal water treatment systems; hence, a lot of homeowners have received notices over the last few years.

The primary territories concerned by this initiative on located on the outskirts of big cities, remote suburban areas, small communities, and rural areas. Homes located in said areas often don’t have access to a nearby municipal sewage system or on-site domestic wastewater treatment system.

We’re talking about regions in the Laurentians, Lanaudière, Mauricie, Abitibi, Beauce, and SaguenayLac-Saint-Jean, but also residences located in urban areas if they're hooked up to a private septic tank.

If you haven’t received a notice, but are in doubt, feel free to contact your municipal authorities, as they’ll be able to provide answers to your questions.

Other Renovation Financial Assistance Available in Quebec

The aforementioned tax credit is far from your only option in terms of financial assistance for renovation work, whether aimed at a septic tank or any other part of your home. The Government of Quebec, the Government of Canada, municipalities, and banks offer a slew of solutions tailored to helping residents.

You can also find a lot of information on our blog by checking out our section: Financing your renovations.

FAQ About Domestic Water Treatment Systems

What is a home wastewater treatment system?

Wastewater treatment refers to the collection of waste-filled water (discharges, bacteria, soap, chemical products, fecal matter). Said water is then subjected to treatments to make it drinkable, separating sewage sludge and removing harmful bacteria before releasing it into nature or the aqueduct system. Doing so helps neutralize many pollutants before they can filter into the St. Lawrence River or any other body of water.

What are the two types of domestic wastewater? 

A home’s plumbing system discharges two types of wastewater: greywater and blackwater. Greywater is waste produced by showers, sinks, and dishwashers. It mainly contains soap and food scraps. On the other hand, blackwater is toilet wastewater, including fecal matter, toilet paper, and urine.

What are the biological wastewater treatment methods?

Several wastewater treatment methods and steps exist, such as decantation, fermentation (anaerobic—oxygen-free), and anaerobic with oxygen. The last two options are considered biological wastewater treatment methods. The types of installations used to undertake said process vary from wastewater treatment plants to septic tanks. 

How does a septic tank work?

A septic system comprises different parts, each of which plays a specific role. Here’s a brief overview: 

  • The first compartment holds wastewater undergoing pre-treatment and physical decantation, separating organic materials in grease or sludge.

  • In the second compartment, anaerobic bacteria transform a part of the solids into gas released by the septic tank’s ventilation system.

  • In the third compartment, the wastewater (now treated) is channelled toward a leaching field, a sand filter, or a compact filter where a final treatment is carried out.

Can I repair or maintain my septic tank myself?

Some of the upkeep can be DIYed, but repairs and installation must be done by contractors specializing in septic tank work.

What are the three (3) types of sewage systems?

The three types of sewage treatment are centralized, decentralized, and combined systems.

What are the levels of municipal wastewater treatment? 

The three levels of wastewater treatment are primary, secondary, and tertiary. Municipal facilities most commonly use primary and secondary treatment, while tertiary treatment is sometimes employed by other Canadian facilities or residential systems.


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