2017-0720601E5 BC Home Renovation Tax Credit

Principal Issues: Whether renovation costs for the installation of an automatic gate would qualify for the British Columbia Home Renovation Tax Credit for Seniors and Persons with Disabilities.

Position: Likely yes, depending on the facts. General comments given.

Reasons: The renovation and costs associated with the renovation need to meet the definitions of 'qualifying expenditure' and 'qualifying renovation' in section 141 of Part 11 of the BC Act.

Author: Brennan, Christopher
Section: British Columbia Income Tax Act (BC Act), Part 11, Section 141

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                                                                                                                                                                Christopher Brennan
September 28, 2018

Dear XXXXXXXXXX:

Re:   British Columbia Home Renovation Tax Credit for Seniors and Persons with Disabilities (the “BC HRTC”)

We are writing in response to your letter regarding the BC HRTC. In particular, you would like to know whether you can claim the BC HRTC on the purchase and installation of an automatic gate for the rear entrance of your property. We apologize for the delay in our response.

This technical interpretation provides general comments about the provisions of the British Columbia Income Tax Act (the “BC Act”) and related legislation (where referenced).  It does not confirm the income tax treatment of a particular situation involving a specific taxpayer but is intended to assist you in making that determination.  The income tax treatment of particular transactions proposed by a specific taxpayer will only be confirmed by this Directorate in the context of an advance income tax ruling request submitted in the manner set out in Information Circular IC 70-6R7, Advance Income Tax Rulings and Technical Interpretations.

The BC HRTC assists eligible individuals 65 and over and persons with disabilities with the cost of certain permanent home renovations incurred to improve accessibility or to be more functional or mobile at home.

The program for seniors (and family members living with seniors) started April 1, 2012. Effective February 17, 2016 the program was extended to persons with disabilities (and family members living with those individuals) and renamed the Home Renovation Tax Credit for Seniors and Persons with Disabilities.

Residents of British Columbia are eligible to claim the BC HRTC if they are a senior, a family member living with a senior, or a person that qualifies for the Federal Disability Tax Credit or a family member living with a person who qualifies for the Federal Disability Tax Credit (for 2016 and later tax years).

In general, to be a qualifying renovation eligible for the BC HRTC, the renovation must enable the senior or the person with the disability to access their home, be more functional in their home, or reduce the risk of harm in their home. The renovation needs to be of the type that would ordinarily be undertaken by a person with an impairment. The renovation must be enduring and integral to the residence.

Allowable costs must be directly attributable to the qualifying renovation and can include the cost of permits and equipment rentals used for the renovation.

It is a question of fact as to whether the installation of an automatic gate would qualify for the BC HRTC. You mentioned you “have disability status with CRA”. Assuming you qualify for the federal disability tax credit, the renovation or alterations are made to your principal residence located in BC and would ordinarily be undertaken by a person with a similar impairment, the expenditures to acquire and install an automatic gate would likely qualify for the BC HRTC.

We trust our comments will be of assistance to you.

Yours truly,

Lita Krantz, CA, CPA
Manager, Tax Credits and Ministerial Issues
Business and Employment Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch

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