HST New Home Rebate

Ontario allowed for an HST New Home Rebate back effective July 1, 2010 on the purchase of a new residential home.  The GST/HST New Home Rebate could be as high as $30,000 in the case of an owner-built home.

PEI is still grappling with how to address the additional cost of HST on new homes in that province.  The topic of the HST New Home Rebate has been debated and industry has requested a larger rebate .  As the CBC has reported:

The committee is modeling its proposed rebate on the sale of new homes on a similar program in Ontario, suggesting government rebate 75 per cent of HST payable on a new home, to a maximum of $24,000.

The province’s Standing Committee on Education and Economic Development is also suggesting a rebate on HST paid on home renovations worth more than $10,000.

Ontario had a history under the RST of not paying sales tax on the purchase of a new home and that formed the basis for the HST new home rebate in the province.  PEI may want to consider the same to ensure neutrality and fairness to its residents.

Contact your HSTRebate Advisor to learn more.