Included in the 2018-2019 Provincial budget are several measures affecting home buyers:
Non-refundable tax credit for first-time homebuyers
• To promote homeownership and reduce the indebtedness of first-time homebuyers, the government is announcing the introduction of a non-refundable tax credit in 2018 of up to $750 for the purchase of their first home.
• According to the Department’s calculations, a first-time homeowner could receive a Québec tax credit of up to $750 that, when combined with the federal tax credit of $626, could provide up to $1,376 in tax relief.
• The new first-time home buyers tax credit requires the purchase of a qualifying home. As well, the new homeowner must not have owned a home in the four years preceding the year of purchase.
• The tax credit for the purchase of a first home will be applicable to properties acquired as of January 1, 2018.
Extension of the RénoVert program
Although the RénoVert program was very popular with homeowners, it was scheduled to end on March 31, 2018. The Québec Economic Plan extends the RénoVert refundable tax credit for an additional year.
• Homeowners will have until March 31, 2019 to enter into an agreement with a recognized contractor and until December 31, 2019 to pay for renovation expenses.
• The assistance provided by the RénoVert refundable tax credit is equal to 20 per cent of qualified home renovation expenditures in excess of $2,500. The maximum amount of the tax credit is $10,000.