Grants and Tax Credits for Home Renovations in Alberta

As we know all too well, renovating a home can be extremely costly, not to mention a stressful and time-consuming process. Not everyone is able to spend the necessary funds on projects they may want or need to carry out. Luckily, across Canada, there are several options in the realm of funding, subsidies, tax credits, and grants that can be applied to your province-specific home renovation project.

Alberta has a few available options, like grants tax credits and rebates for homeowners who wish to make their homes more accessible as well as increasingly eco-friendly.

Can You Claim House Renovations or Improvements On Your Federal Taxes in Canada?

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RAMP & Home Accessibility Tax Credit

The Residential Access Modification Program, also known as RAMP, provides grants to assist low-income households in Alberta who face mobility challenges to alter their homes accordingly to facilitate access and mobility throughout. Those who are eligible for RAMP can receive up to $7,500 per year and up to $15,000 within a 10-year benefit period.

Regardless of your age, all wheelchair-bound individuals who meet program criteria are eligible. However, you must be a Canadian citizen and have lived in Alberta for a consecutive period of 90 days, as well as have a health card (care card) to receive government tax credits or, in this case, home renovation grants. Further, anyone living with a progressive neurodegenerative disease, including but not limited to multiple sclerosis, muscular dystrophy, ALS, COPD, as well as non-recovering stroke victims, those suffering from Parkinson's, Alzheimer's, spina bifida and/or spinal cord injuries or those who require a walking aid.

There are many specifications for this grant application, including income guidelines, the specifications of the home renovations and priority applicants. Therefore, if you believe that you are eligible and are interested in applying, thoroughly check out the Human Services Alberta webpage for more details.

Another program available for Canadians is the HATC, the Home Accessibility Tax Credit, a non-refundable tax credit, for which qualifying individuals can claim a tax credit after renovating their dwellings to improve accessibility and mobility, as well as the safety of the occupants since the improvements were tailored to the qualifying individuals to limit the risks of injuries. 

What is the home renovation tax credit offered by the CRA for 2023?

As part of Budget 2022, the Government of Canada introduced the Multigenerational Home Renovation Tax Credit, also known as the MHRTC, which is a refundable tax credit offered to assist qualifying individuals in renovating their dwellings to add a secondary unit (multigenerational home) to cohabitate with immediate qualifying relatives. In order to obtain this tax credit, the qualifying individuals must be seniors, meaning 65 years of age or older before the end of the tax year or persons of 18 years of age or older before the end of the taxation period during which the renovations occurred and are eligible for deduction under the Disability Tax Credit. For more information about this tax credit, visit the Government of Canada website.

Renewable Energy Home Renovation Initiatives in Alberta

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Going green pays off! In Alberta, homeowners have access to several financial incentives to reduce their emissions and carbon footprint, including measures designed to offset carbon pricing on fuel. Alberta households also automatically receive the Canada Carbon Rebate when filing their income tax returns. At the same time, new energy-efficiency programs have been introduced to help households reduce their energy bills more directly.

For low- and middle-income households, the Home Upgrades Program provides a free energy assessment and fully covers the installation of energy-efficient products, such as insulation, high-efficiency furnaces, programmable thermostats, and LED light bulbs, in several cities across the province.

For other homeowners, the Clean Energy Improvement Program (CEIP), which is available in Calgary among other municipalities, can finance up to 100% of major upgrades, including solar panel and heat pump installations. Repayment is flexible and convenient, with costs added directly to the property’s tax bill over time.

Also, Banff residents can apply for rebates and incentives if they choose to add green and/or energy-efficient features to their homes to reduce home energy use. Water use reduction, as well as home energy use reduction, are two ways that Banff homeowners can save money while receiving rebates after the installation of eco-friendly appliances.

Several rebate options are available to help reduce household water consumption. Eligible upgrades may include replacing a toilet with a dual-flush or high-efficiency model, installing an Energy Star-certified washing machine or dishwasher, and adding rain barrels to collect rainwater.

To reduce energy consumption at home, homeowners can lower their electricity and natural gas bills, as well as the energy use and greenhouse gas emissions associated with excessive consumption, by installing Energy Star-certified products. These may include full-size refrigerators, certified solar water-heating systems, programmable thermostats, and high-efficiency furnaces.

The amount of the rebate will vary from household to household and product to product, though if this is something you've been considering, take a look at Banff's website for more information on the subject matter.

As a homeowner, eligible senior, or individual who qualifies for the Disability Tax Credit, it is both important and financially beneficial to determine whether you are eligible for tax credits, incentives, or grants for home renovations and improvements.