In the spring of 2012, the BC Government brought in a wonderful new tax credit specifically for BC Seniors. The BC Seniors’ Home Renovation Tax Credit is a refundable personal income tax credit worth 10% of eligible expenditures to assist seniors with the cost of permanent home renovations that improve accessibility or help a senior be more functional or mobile at home.

The maximum credit is $1,000 each year. There is no minimum threshold and there is no lifetime maximum. Because this credit is refundable, you can get up to $1,000 back on your tax return each year even if you pay no taxes. So, the first $10,000 of eligible expenditures you incur each and every tax year qualify for this credit.

Who is Eligible

• BC Residents
• A senior who turns 65 or older during the tax year
• A family member who lives with the senior

What is Eligible

Eligible expenses incurred on or after April 1, 2012 that are part of a renovation to the person’s primary place of residence (regardless of whether they own or rent) and have the following characteristics:

• Are of an enduring nature and integral to the residence
• The primary purpose of which is not to increase the value of the residence

• Enable a senior to gain access to or be mobile/functional within their primary residence, or reduce the risk of injury to a senior

Common Examples of Eligible Expenses

• Renovations to permit one-level living – so a senior can avoid the stairs
• Grab bars around toilet, tub and shower
• Wheelchair ramps, lifts and elevators
• Widening passage doors
• Raised toilets, walk-in bathtubs, showers
• Non-slip flooring

Common Examples of Ineligible Expenses

• Home appliances regardless if they are for one level living
• Devices such as wheelchairs, walkers or home medical monitoring
• General maintenance – such as plumbing or electrical repairs
• Home care services
• Housecleaning and outdoor maintenance and gardening
• Repairs to a roof

Basically, eligible expenditures are renovations to your home which make life easier for your everyday living as a senior. Medical devices and the like normally qualify as eligible medical expenses for tax purposes. Also, any renovation you make to simply repair or improve something in your home which anyone (like a non-senior) would do does not qualify.

Unlike the Home Renovation Tax Credit which came out a couple of years ago, this is not a one-time thing. Each BC senior (or family member who lives with them) can claim up to $10,000 in eligible expenditures each and every year. Furthermore, there is no minimum threshold (the Home Renovation Tax Credit excluded the first $1,000 of expenditures).

Did You Know

Renovation or construction expenses to make changes to a person’s primary residence who suffers severe and prolonged mobility impairment can be claimed as eligible medical expenses.

Surprisingly, the government is going to allow seniors who also have severe and prolonged mobility impairment to claim these eligible expenditures twice. Yes, that is correct. The federal government already allows you to claim these types of expenditures as a medical expense, and now the BC government will also allow the same expenditure to be claimed under this new BC Seniors’ Home Renovation Tax Credit. The main difference is that for the medical credit, the person has to be disabled, while for the BC Credit, the person simply has to be 65 or older. Of course, many BC residents are both senior and disabled and have expenditures that qualify for both tax credits.