New! The PBRHR - 100% GST / HST Rebate on Rental Housing Units

A new Purpose-Built Rental Housing Rebate (PBRHR) is now available for landlords and builders of new or substantially renovated buildings being converted to residential rental units specifically to house students, seniors and apartment dwellers.  The federal government will refund 100% of the GST and federal portion of the HST.  Notably there is no $450,000 fair market value limit on the housing units, as required under existing GST/HST rebate rules.  However, the application process is still not set in stone.

Who Qualifies?  To qualify for the rebate, the residential units must first meet the requirements for the current GST/HST new residential rental property rebate.  Specifically, the landlord will be someone who:

• Purchased a newly constructed or substantially renovated residential rental property
• Built their own residential rental property
• Made an addition to a multiple-unit residential rental complex
• Is a builder who had to account for the GST/HST under the self-supply rules due to the sale of a residential unit to an individual in certain circumstances
• Is a person who had to account for the GST/HST under the self-supply or change-in-use rules because they made an exempt lease of land used for residential purposes for example, a site in a residential trailer park)

In addition, the following criteria needs to be met:

• Substantial renovations to existing residential complexes will not qualify.
• The rental units must be in a multi-unit residential complex and contain at least 4 private apartment units
• Each unit must have a kitchen, bathroom and living area or at least 10 private rooms or suites, and
• 90% of residential units must be held for long-term rental
• Construction defined as when excavation for the project starts) that qualifies will have started after September 13, 2023, but before 2031
• Projects must be substantially completed before 2036
• Conversions of existing non-residential real estate, such as an office building, into a residential complex will qualify for the rebate.

How to Apply.  The application process differs for registrants and non-registrants:

• GST/HST registrants  - You are directed to go to My Business Account.  Select the existing GST/HST New Residential Rental Property Rebate Application (GST524) to apply. 
• GST/HST non- registrants – The application process was not ready at the time of writing.  Applicants are directed to call 1-800-959-5525.  Once up and running,  non-registrants will select the existing GST524 in My Account.

Provincial Rebates Possible, Too:  Mirrored provincial rebates will be available in Ontario, Nova Scotia, Newfoundland and Labrador – that is,  a 100% rebate of the provincial portion of HST in those provinces. Prince Edward Island will provide a 100% rebate of the provincial component of HST, but this will be subject to a maximum rebate per unit and a reduced rebate rate for projects that reach completion after 2028. 

Make a Difference.  Helping landlords and builders become aware of the new GST/HST rebates will be of value; helping them navigate the application process, even more so, so they can focus on solving Canada’s rental housing crunch.