At the British Columbia’s Budget 2012 conference today, the provincial government announced two incentives for the residential construction industry and its consumers:
1. A $10,000 temporary, one-time refundable income tax credit for first-time home buyers who purchase a newly constructed home, effective today, February 21, 2012 through to March 31, 2013.
Details are available here:http://www.bcbudget.gov.bc.ca/2012/homebuyers/2012_First_Time_Home_Buyers_Fact_Sheet.pdf
2. A $1,000 Seniors’ Home Renovation Tax Credit, a refundable personal income tax credit for the cost of permanent renovations that provide individuals age 65 and over with increased independence. This is an annual $1,000 credit based on 10% of eligible expenditures.
Details are available here:http://www.bcbudget.gov.bc.ca/2012/backgrounders/2012_Backgrounder_2.pdf
Combined with the HST-to-PST transition rules and HST tax-relief measures announced last week for new homes, this should help to stimulate the new-homes industry throughout BC. However, the budget did not include measures to mitigate the HST impact on home renovations.