Home Accessibility Tax Credit (HATC)

The Home Accessibility Tax Credit (HATC) is a non-refundable tax credit available to Canadian homeowners who make eligible expenditures to improve accessibility for individuals with disabilities in their homes. It is a federal tax credit that can be claimed on a homeowner's tax return and is designed to help offset the cost of making accessibility modifications to their homes.

Eligible expenditures under the HATC include things like installing grab bars, building wheelchair ramps, widening doorways, and other modifications that make it easier for people with disabilities to move around their homes.

The amount of the tax credit is calculated based on the eligible expenditures made by the homeowner. The tax credit is equal to 15% of the eligible expenditures, up to a maximum credit of $10,000. This means that if you have spent $10,000 or more on eligible accessibility expenditures, you can claim a tax credit of $1,500 (15% of $10,000). However, if you have spent less than $10,000, your tax credit will be equal to 15% of your actual expenditures.

What is changing? For the 2022 and subsequent taxation years, the Budget proposes to increase the annual expense limit of the HATC from $10,000 to $20,000. This may allow a taxpayer to claim a tax credit of up to $3,000. All other rules regarding the credit and the increased limit would remain the same.

To claim the HATC, homeowners must have a qualifying disability or be supporting someone with a qualifying disability, and they must have receipts for the eligible expenditures. It's important to note that the HATC is a non refundable tax credit, so it can only be used to reduce the amount of tax owed, not to receive a refund.

Read more at - https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-31285-home-accessibility-expenses.html

Have questions on your eligibility or if the credit can be claimed? Want to know more on how to file and claim in general?

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Disclaimer: This article only provides general information which is not construed as professional advice. Readers seeking professional advice must consult an experienced and a qualified professional in the respective field.