Planning a home renovation? Before starting your next project, it's worth knowing that certain improvements may qualify for tax credits that can help offset some of the costs. While not every renovation is eligible, there are federal and provincial programs designed to make homes safer, more accessible, and better suited to changing family needs. Here are three programs British Columbia homeowners should know about.

1. BC Home Renovation Tax Credit for Seniors and Persons with Disabilities

British Columbia offers a refundable tax credit to help eligible seniors and people with disabilities make their homes safer and more accessible. The credit covers 10% of qualifying renovation expenses, up to a maximum of $1,000 per year. Eligible improvements may include installing wheelchair ramps, walk-in bathtubs, raised toilets, or adjustable countertops. To qualify, the renovations must improve accessibility, mobility, or safety. General maintenance and cosmetic upgrades, such as painting or redecorating, typically aren't eligible.

2. Federal Home Accessibility Tax Credit

The federal government also offers a Home Accessibility Tax Credit for qualifying individuals aged 65 or older and those eligible for the Disability Tax Credit. This non-refundable credit allows eligible homeowners or qualifying family members to claim up to $20,000 in qualifying renovation expenses annually. Examples include installing grab bars, widening doorways, or modifying bathrooms to improve accessibility. Unlike a refundable credit, this one can reduce federal income tax owing but won't necessarily result in a refund if no tax is payable.

3. Multigenerational Home Renovation Tax Credit

For families considering living together under one roof, the federal Multigenerational Home Renovation Tax Credit may offer additional support. This refundable credit applies to qualifying renovations that create a self-contained secondary unit for an eligible senior or adult who qualifies for the Disability Tax Credit to live with a qualifying relative. A secondary unit generally needs its own entrance, kitchen, bathroom, and sleeping area, and must meet applicable local requirements. For the 2025 tax year, the credit provides 14.5% of eligible expenses, up to $50,000, for a maximum credit of $7,250. Rates applicable to other tax years should be confirmed before claiming.

Before You Start Renovating

It's important to remember that not every renovation qualifies for a tax credit. Eligibility depends on the nature of the improvements, the people living in the home, and the specific program requirements. Keep detailed invoices and receipts, review the rules before beginning work, and consult a qualified tax professional to understand which credits may apply to your situation.

Making Your Home Work Better for You

Whether you're making a home more accessible, adapting it for aging family members, or creating space for multiple generations, the right renovations can make a meaningful difference in everyday life. At the Mansour Real Estate Group, we believe a home should continue to meet your needs as life changes. Knowing what financial assistance may be available can help you make more informed decisions about improving the home you already love.  

Adapted from "Home Renovation Tax Credits in Canada," published by WOWA.ca