Grant for Purchasers of New Residential Housing Used as a Secondary or Recreational Residence
The Province will provide a grant to purchasers of new residential housing purchased for use as a secondary or recreational residence where the provincial component of the HST becomes payable and is paid on such homes on or after April 1, 2012 and before April 1, 2013. The grant will be available with respect to newly constructed or substantially renovated homes where the home is located in a qualifying area of the province (outside the Capital Regional District and the Greater Vancouver Regional District) and is purchased or constructed for use as a secondary or recreational residence.
The grant will be equivalent to the B.C. new housing rebates provided with respect to purchases of new residential housing used as a primary residence. As a result, purchasers of new residential housing used as a secondary or recreational residence in qualifying areas with a purchase price of up to $850,000 will be entitled to receive a grant equal to 71.43 per cent of the provincial component of the HST paid up to a maximum of $42,500.
Purchasers of new residential housing used as a secondary or recreational residence in qualifying areas with a purchase price of $850,000 and above will be entitled to the maximum grant of $42,500.
Subject to approval by the legislature, the B.C. government intends to implement a temporary BC First-Time New Home Buyers’ Bonus. Effective February 21, 2012, to March 31, 2013, the bonus is a one-time refundable personal income tax credit worth up to $10,000.
Requirements to Qualify for the Bonus
ELIGIBLE FIRST-TIME NEW HOME BUYER
You will qualify as a first-time new home buyer if:
You purchase or build an eligible new home located in B.C.;
You, or for couples, you and your spouse or common law partner, have never previously owned a primary residence;
You file a 2011 B.C. resident personal income tax return, or if you move to B.C. after December 31, 2011, you file a 2012 B.C. resident personal income tax return (you will not be eligible for the bonus if you move to B.C. after December 31, 2012);
You are eligible for the B.C. HST New Housing Rebate; and
You intend to live in the home as your primary residence
Amount of the Bonus
The bonus is equal to 5% of the purchase price of the home (or in the case of owner-built homes, 5% of the land and construction costs subject to HST) to a maximum of $10,000.