Excise Tax Act

Marginal note:Definitions

• 254 (1) In this section,

  relation

  relation of a particular individual means another individual who is related to the particular individual or who is a former spouse or common-law partner of the particular individual; (proche)

  single unit residential complex

  single unit residential complex includes

  • (a) a multiple unit residential complex that does not contain more than two residential units, and

  • (b) any other multiple unit residential complex if it is described by paragraph (c) of the definition residential complex in subsection 123(1) and contains one or more residential units that are for supply as rooms in a hotel, motel, inn, boarding house, lodging house or similar premises and that would be excluded from being part of the residential complex if the complex were a residential complex not described by that paragraph. (immeuble d’habitation à logement unique)

• Marginal note:New housing rebate

  (2) Where

  • (a) a builder of a single unit residential complex or a residential condominium unit makes a taxable supply by way of sale of the complex or unit to a particular individual,

  • (b) at the time the particular individual becomes liable or assumes liability under an agreement of purchase and sale of the complex or unit entered into between the builder and the particular individual, the particular individual is acquiring the complex or unit for use as the primary place of residence of the particular individual or a relation of the particular individual,

  • (c) the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable for the supply to the particular individual of the complex or unit or for any other taxable supply to the particular individual of an interest in the complex or unit, is less than $450,000,

  • (d) the particular individual has paid all of the tax under Division II payable in respect of the supply of the complex or unit and in respect of any other supply to the individual of an interest in the complex or unit (the total of which tax under subsection 165(1) is referred to in this subsection as the “total tax paid by the particular individual”),

  • (e) ownership of the complex or unit is transferred to the particular individual after the construction or substantial renovation thereof is substantially completed,

  • (f) after the construction or substantial renovation is substantially completed and before possession of the complex or unit is given to the particular individual under the agreement of purchase and sale of the complex or unit

    • (i) in the case of a single unit residential complex, the complex was not occupied by any individual as a place of residence or lodging, and

    • (ii) in the case of a residential condominium unit, the unit was not occupied by an individual as a place of residence or lodging unless, throughout the time the complex or unit was so occupied, it was occupied as a place of residence by an individual, or a relation of an individual, who was at the time of that occupancy a purchaser of the unit under an agreement of purchase and sale of the unit, and

  • (g) either

    • (i) the first individual to occupy the complex or unit as a place of residence at any time after substantial completion of the construction or renovation is

      • (A) in the case of a single unit residential complex, the particular individual or a relation of the particular individual, and

      • (B) in the case of a residential condominium unit, an individual, or a relation of an individual, who was at that time a purchaser of the unit under an agreement of purchase and sale of the unit, or

    • (ii) the particular individual makes an exempt supply by way of sale of the complex or unit and ownership thereof is transferred to the recipient of the supply before the complex or unit is occupied by any individual as a place of residence or lodging,

  the Minister shall, subject to subsection (3), pay a rebate to the particular individual equal to

  • (h) where the total consideration is not more than $350,000, an amount equal to the lesser of $6,300 and 36% of the total tax paid by the particular individual, and

  • (i) where the total consideration is more than $350,000 but less than $450,000, the amount determined by the formula

    A × [($450,000 - B)/$100,000]

    where

    A

    is the lesser of $6,300 and 36% of the total tax paid by the particular individual, and

    B

    is the total consideration.

• (2.01) [Repealed, 2026, c. 2, s. 4]

• (2.02) [Repealed, 2026, c. 2, s. 4]

• Marginal note:Additional new housing rebate — first-time home buyer

  (2.1) If

  • (a) a particular individual is entitled to claim a rebate under subsection (2) in respect of a residential complex that is a single unit residential complex or a residential condominium unit or would be so entitled if the references in paragraphs (2)(c) and (i) to “$450,000” were read as “$1,500,000”,

  • (b) the agreement of purchase and sale referred to in paragraph (2)(b) is entered into after March 19, 2025 and before 2031,

  • (c) the construction or substantial renovation of the residential complex begins before 2031 and is substantially completed before 2036,

  • (d) ownership of the residential complex is transferred to the particular individual before 2036, and

  • (e) the particular individual

    • (i) at the time the particular individual becomes liable or assumes liability under the agreement of purchase and sale, is acquiring the residential complex for use as their primary place of residence,

    • (ii) is the first individual to occupy the residential complex as a place of residence after the construction or substantial renovation of the residential complex is substantially completed, and

    • (iii) is a first-time home buyer at the particular time at which ownership of the residential complex is transferred to the particular individual,

  the Minister shall, subject to subsection (3), pay a rebate to the particular individual, in addition to the rebate, if any, payable under subsection (2) to the particular individual, equal to

  • (f) if the total consideration, within the meaning of paragraph (2)(c), in respect of the residential complex is not more than $1,000,000, the amount determined by the formula

    A − B

    where

    A

    is the lesser of $50,000 and the total tax paid by the particular individual, within the meaning of paragraph (2)(d), in respect of the residential complex, and

    B

    is the amount of the rebate, if any, under subsection (2) that the particular individual is entitled to claim in respect of the residential complex, and

  • (g) if the total consideration, within the meaning of paragraph (2)(c), in respect of the residential complex is more than $1,000,000 but less than $1,500,000, the amount determined by the formula

    C × [($1,500,000 − D) ÷ $500,000]

    where

    C

    is the lesser of $50,000 and the total tax paid by the particular individual, within the meaning of paragraph (2)(d), in respect of the residential complex, and

    D

    is the total consideration.

• Marginal note:Application for rebate

  (3) A rebate under this section in respect of a residential complex or residential condominium unit shall not be paid to an individual unless the individual files an application for the rebate within two years after the day ownership of the complex or unit is transferred to the individual.

• Marginal note:Application to builder

  (4) Where

  • (a) the builder of a single unit residential complex or a residential condominium unit has made a taxable supply of the complex or unit by way of sale to an individual and has transferred ownership of the complex or unit to the individual under the agreement for the supply,

  • (b) tax under Division II has been paid, or is payable, by the individual in respect of the supply,

  • (c) the individual, within two years after the day ownership of the complex or unit is transferred to the individual under the agreement for the supply, submits to the builder in prescribed manner an application in prescribed form containing prescribed information for the rebate to which the individual would be entitled under subsection (2) or (2.1) in respect of the complex or unit if the individual applied therefor within the time allowed for such an application,

  • (d) the builder agrees to pay or credit to or in favour of the individual any rebate under this section that is payable to the individual in respect of the complex, and

  • (e) the tax payable in respect of the supply has not been paid at the time the individual submits an application to the builder for the rebate and, if the individual had paid the tax and made application for the rebate, the rebate would have been payable to the individual under subsection (2) or (2.1), as the case may be,

  the builder may pay or credit the amount of the rebate, if any, to or in favour of the individual.

• Marginal note:Forwarding of application by builder

  (5) Notwithstanding subsections (2) to (3), where an application of an individual for a rebate under this section in respect of a single unit residential complex or a residential condominium unit is submitted under subsection (4) to the builder of the complex or unit,

  • (a) the builder shall transmit the application to the Minister with the builder’s return filed under Division V for the reporting period in which the rebate was paid or credited; and

  • (b) interest under subsection 297(4) is not payable in respect of the rebate.

• Marginal note:Joint and several liability

  (6) If the builder of a single unit residential complex or a residential condominium unit pays or credits a rebate to or in favour of an individual under subsection (4) and the builder knows or ought to know that the individual is not entitled to the rebate or that the amount paid or credited exceeds the rebate to which the individual is entitled, the builder and the individual are jointly and severally, or solidarily, liable to pay the amount of the rebate or excess to the Receiver General under section 264.