Are you eligible for a tax refund for your renovations?
- coraliefortin076
- Jul 1
- 4 min read
Renovating your house, cottage, or even garage is often a project that brings renewal, but also involves significant costs. What many homeowners don't know is that there are tax rebate programs in Quebec and Canada that can reduce the cost, particularly for GST and QST.
At Plan Maison Québec, we believe that a well-informed project is a well-executed project. That's why we want to guide you through this important question: are you eligible for a tax rebate for your renovations?
Understanding the concept of major renovation
Before even discussing a refund, it's important to understand what the tax authorities mean by "major renovation." Not just any project qualifies for a refund. We're talking about work so extensive that it renovates almost the entire home.
By definition, a major renovation involves the demolition or replacement of more than 90% of the finished interior surfaces of the home, which includes non-load-bearing interior walls, floors, ceilings, electrical, plumbing, and heating systems. However, this excludes certain structural elements such as load-bearing walls, foundations, and the roof.
In other words, completely redoing a kitchen or bathroom won't be enough. However, a significant extension, a complete interior transformation, or even a reconstruction after a disaster could very well meet the criteria of a major renovation. This is where Plan Maison Québec comes in: our team of plan drawing experts knows how to recognize this type of project and assist you with the planning and necessary documentation.
Under what conditions can I obtain a refund?
The tax refund on major renovations depends on a series of specific conditions. First, the renovated home must be your principal residence or that of a loved one. It can be a single-family home, a year-round cottage, or a condominium. Second, the home must not have been occupied since the work was completed—or you or a loved one must be the first occupants after the renovations.
Another important criterion is the market value of the home and land once the renovations are completed. To be eligible for the GST rebate, the fair value must not exceed $450,000. For the QST, this ceiling is even lower, at $300,000. Beyond these amounts, the rebates are reduced to zero.
Finally, it is essential that the work be properly documented. All expenses must be justified by detailed invoices: materials, labor, professional services such as architects or technologists, surveying or notary fees, etc. To this end, the plans designed by Plan Maison Québec are recognized for their clarity and precision, two qualities that facilitate the evaluation of your project by the tax authorities.
The amounts you may be entitled to
The federal and Quebec governments each offer their own rebates. For the GST, the maximum rebate is 36% of the tax paid, up to $6,300. For the QST, the maximum rebate is 50%, up to $9,975. Note that these amounts decrease based on the value of the renovated home: the higher the value, the lower the rebate.
These two rebates are not automatic. You must claim them using the appropriate forms and submit them within two years of the date the work was 90% completed or the date the renovated building was occupied. This administrative detail may seem complex, but it is crucial. A mistake or oversight can result in thousands of dollars in lost rebates. Plan Maison Québec regularly works with clients in this situation, and we can refer you to partners who will guide you through the administrative process.
Eligible renovations and common exclusions
It's important to understand that not all renovations are eligible for reimbursement. For example, a cosmetic renovation, such as repainting the walls, changing the countertops, or replacing the flooring without any other major work, is not enough. The house must truly be "transformed" internally. Similarly, if you're adding on to a house without touching the existing space, that might not be enough either.
Another often misunderstood point concerns self-construction. If you do a large portion of the work yourself, you may still be eligible, but you must be able to estimate and declare the value of your own work, which can be tricky without professional help. This is why the services of a building designer, such as those offered by Plan Maison Québec, can be essential to the success of your project and the acceptance of your reimbursement application.
The role of Plan Maison Québec in your project
At Plan Maison Québec, we are much more than just a plan drawing service. We are trusted partners for all your construction and renovation projects, whether for your primary residence, a cottage, or a garage. Our local expertise allows us to understand Quebec's regulatory requirements and integrate the necessary elements into your plans to meet tax rebate criteria.
We help you clearly define the scope of the work, justify any changes made, and structure your project in compliance with the requirements of Revenu Québec and the Canada Revenue Agency. In addition, we can refer you to certified contractors and tax specialists if your project requires it.
Conclusion: Team up with Plan Maison Québec to maximize your savings
Renovating is an investment in your quality of life and the value of your property. But it's also an opportunity to recoup some of your costs through tax rebate programs for major renovations. You just need to know how to go about it, meet the established criteria, and build a solid application. This is where professional support makes all the difference.
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