Save Up to $7,500 with Ontario’s 2025 Multigenerational Home Renovation Tax Credit

Add an in-law suite for your loved ones and get money back. Kozak Reno – Local, Bonded & Insured with 25+ years of experience – helps you maximize your savings and take full advantage of this tax credit with zero hassle.

2025 Update: The Multigenerational Home Renovation Tax Credit (MHRTC) is fully available to Ontario families in 2025, with no major changes to its generous benefits. That means 15% back on your renovation costs (up to $50,000 in expenses) – a refund up to $7,500 – when you create a qualifying secondary suite for a senior parent or a family member with a disability . It’s a refundable credit, so you get actual cash back even if you owe little to no tax – real savings in your pocket . This credit was introduced to make multigenerational living more affordable, and as of 2025 it’s helping many Ontario homeowners build comfortable in-law suites with the government covering a chunk of the bill.

Why does this credit exist? It’s simple – to help families bring aging parents or adult children with disabilities under the same roof, safely and affordably. Rather than paying for costly care facilities or separate housing, you can invest in your own home, increase its value, and keep your loved ones close. The government basically rewards you for creating a suitable space for a senior or disabled relative. And with Kozak Reno’s expert guidance and support, claiming this credit becomes a breeze. We handle the heavy lifting – you reap the $7,500 reward.

Ready to claim your $7,500 refund and create the perfect in-law suite? Contact Kozak Reno now for a free consultation and quote! (We’ll beat any competitor quote by 5% and get your project done within a guaranteed time frame.)

What Is the Multigenerational Home Renovation Tax Credit?

The MHRTC is a refundable federal tax credit designed to put money back in your hands when you build a secondary housing unit for an eligible family member. In plain language: upgrade your home to add a self-contained suite and get 15% of the construction cost refunded. Spend $50,000 (the maximum eligible amount) on a basement apartment or addition for Grandma, and you’ll get $7,500 back at tax time . Spend $30,000, get $4,500 back – you get the idea. It’s like a sale where the government chips in to support your family goals.

This credit covers qualifying renovations completed in the tax year (for example, finish the reno in 2025, claim on your 2025 tax return) . It’s not a deduction but a refund, meaning even if you don’t owe taxes, you still get the full benefit as a check or direct deposit** .** And importantly, it’s one per qualifying person – each senior or disabled family member can only trigger this credit once in their lifetime . That means you want to make it count. Kozak Reno ensures your renovation is done right the first time, so you maximize this one-shot opportunity to get assistance.

How Does It Work?

• You can claim 15% of your qualified renovation expenses, up to $50,000 per project . In other words, for a large project you’ll get the full $7,500; for smaller projects, you get 15% back (e.g. $3,000 back on a $20,000 reno).
• It’s refundable – if your credit is bigger than what you owe in taxes, you get the difference as a refund . This is cash in hand, not just a tax break on paper.
• Multiple people can split the credit if you and a relative share the renovation costs. For instance, if two siblings each spend $25k on a $50k project for Mom, they can split the $7,500 refund. (The combined claim still maxes out at $50k of expenses total) . We’ll help your family coordinate who claims what, so you don’t leave any money on the table.
• One credit per renovation per qualifying individual. If you have two separate eligible family members (say one for a basement suite, another for a laneway suite), you could do two projects and claim up to $7,500 for each . But for one person, you can’t claim twice – plan a single renovation that meets their needs. (Tip: Kozak Reno’s team will help you design a suite that checks all the boxes from day one.)

Quick Example: The Smiths spend $50,000 building a garden suite for Grandpa Joe. Come tax time, they get a $7,500 refund – turning a pricey renovation into a much more affordable $42,500 net cost . If they only spend $20,000 converting part of their home, they get $3,000 back. Either way, it’s free money to support your family.

Who Is Eligible for the Credit?

Not every home upgrade qualifies – the MHRTC has specific eligibility requirements to ensure it’s helping the intended families. Here’s how to know if you and your project qualify:

A modern in-law suite with a private living area and kitchenette – exactly the kind of self-contained secondary unit that qualifies for the tax credit.

• Qualifying Individual (Family Member in Need): The renovation must be for a senior aged 65+ or an adult (18+) with a disability (one who is eligible for the federal Disability Tax Credit) . This is the family member who will live in the new suite. It can be a parent or grandparent, an aunt or uncle, or even an adult child/niece/nephew with a disability – as long as they’re 65+ or DTC-eligible and need this living arrangement.
• Qualifying Relation (Homeowner/Claimant): The person claiming the credit (and typically the homeowner) must be related to the qualifying individual. Think close family: child, grandchild, brother, sister, niece/nephew, or someone of that ilk . In most cases, it’s an adult child or grandchild creating a space for an aging parent/grandparent – but other relations count too (even in-laws, since a spouse’s relative is covered). The key is that the senior or disabled person and the relative will live together in one property.
• Eligible Dwelling: The home must be in Canada (yes, your Ontario home certainly counts) and owned by either the qualifying individual or their relation who is claiming the credit . So if you’re the adult child making the claim, you or your parent should own the home. (Renters unfortunately can’t claim this credit unless they own the home via a family trust, etc.) The renovated space must be intended to be occupied by both the family member and you (or another qualifying relation) within 12 months of the project’s end . In practice, that means once the suite is ready, your loved one should move in within a year – which is usually the plan anyway.
• Qualified Renovation Project: The renovation itself must create a fully self-contained secondary unit for your eligible family member . This means a private living space within your home or on your property that has its own entrance, kitchen, sleeping area, and bathroom . Essentially, you’re building an independent apartment (think: basement suite, backyard tiny home, above-garage apartment, etc.). The unit can be newly built or converted from existing space (e.g. finishing a basement or adding an addition), but it must meet local building codes and requirements for a legal secondary dwelling . (Don’t worry – Kozak Reno handles the permits and ensures everything is up to code, so your renovation qualifies without question.)
• Timing: To claim in a given tax year, the renovation must be substantially completed in that year . It’s okay if you started earlier – what matters is the final inspection or completion sign-off happens by December 31 of the year you want to claim. For example, if your project wraps up in 2025, you’ll claim the credit on your 2025 tax return (due in spring 2026) . With Kozak’s Guaranteed Time Frame, we make sure your renovation finishes on schedule (no delays that could push your claim to the next year – the credit is tied to the completion year ). This way, you and your family member can start enjoying the space – and the savings – as planned.
• Documentation & Proof: You’ll need to keep receipts and documents to prove your expenses (more on that in the step-by-step guide below). Only eligible expenses count – generally, that’s the materials and labor directly for the renovation . Routine maintenance, appliances, or costs not directly part of the suite construction don’t qualify . For instance, installing a kitchenette, bathroom fixtures, drywall, electrical – those expenses qualify. Buying a new TV or regular furniture for grandma’s room would not qualify. Kozak Reno will provide detailed invoices breaking down qualifying costs, so you’re clear on what you can claim.
• Lifetime Limit: As mentioned, each qualifying individual (say, Grandma) only gets to be the reason for one MHRTC claim in their lifetime . You can’t build multiple units for the same person and claim multiple credits – even if they move to another relative’s home later, the credit generally can’t be claimed again for that same person. This makes it important to do a high-quality, future-proof renovation now. (Our team can help anticipate accessibility needs so the suite serves your family for years to come.) Likewise, the $50k expense limit is per renovation/ per person – you can’t stretch one person’s credit by doing two projects in different years. However, if you have two different eligible family members (e.g. two parents) and you create separate suites for each, those are separate credits.

In short: If you’re an Ontario homeowner with an aging parent (65+) or a disabled adult relative who could live with you, and you’re willing to create a proper second unit for them, you likely qualify! The credit is a fantastic opportunity to offset the cost of making your home suitable for multigenerational living.

Step-by-Step: How to Claim the Tax Credit (and Get Your $$$)

Taking advantage of the Multigenerational Home Renovation Tax Credit is easier than you might think. Here’s a straightforward guide to applying for the credit and how Kozak Reno supports you at each step:

1. Plan Your Eligible Renovation – First, determine that you have a qualifying family member (senior 65+ or DTC-eligible adult) and decide on the type of secondary suite that fits your home. Will it be a basement apartment, a first-floor addition, a backyard tiny home? The unit must be self-contained with its own entrance, kitchen, bath, etc., and meet local bylaws . Brainstorm the features your loved one needs (for example, no-step entrances, grab bars, wider doorways for wheelchairs – many of these can double-count for the separate Home Accessibility Tax Credit too). Consult with Kozak Reno early – our 25+ years of experience in home renovations means we can advise on design, budgeting, and permitting so that your project fully qualifies for the credit. We’ll even point out if any portion of the reno might not be claimable, so you know where you stand upfront.
2. Get Quotes & Secure Permits – It’s crucial to work with a licensed, insured contractor (like Kozak Reno – we’re local, bonded & insured) who understands the requirements of building a legal secondary unit. We’ll provide a detailed written quote, including all the elements that count toward the tax credit. Our team handles the building permits and ensures the plans meet Ontario building codes (remember, your reno must meet all local standards to be eligible) . At this stage, map out your timeline. Let’s say you want to claim for 2025 – we’ll schedule the project so it finishes by the end of 2025, as required . (With our Guaranteed Time Frame, you can be confident we won’t miss that deadline.)
3. Complete the Renovation – Once construction is underway, Kozak Reno keeps you updated with expert customer support at every step. We stick to the plan and deliver quality craftsmanship backed by our Lifetime Warranty – meaning your new suite is built to last (and any issues down the road are on us to fix). As we wrap up, we’ll ensure final inspections are passed and the unit is officially complete. Now your family member can move into their brand-new suite! (They should do so within 12 months to satisfy the “ordinarily inhabit” requirement , but that’s usually the whole point – to get them living comfortably with you as soon as possible.)
4. Save All Receipts & Documents – Documentation is key to claiming your credit. The Canada Revenue Agency will not ask for your receipts when you file, but you must keep them on hand in case they review your claim. Kozak Reno makes this easy: we provide detailed invoices listing all eligible expenses, our business info and GST/HST number, and proof of payment. Each invoice will clearly show the work done (e.g. “installation of secondary suite kitchen cabinets – $X”), the date, and that it’s paid in full . If you purchase any materials directly, keep those receipts too. Essentially, you want a paper trail for every dollar you plan to claim. (Pro tip: We’ll organize a folder of all these documents for you – one less thing to worry about.)
5. Claim Your Credit at Tax Time – When tax season arrives, you’ll use the CRA’s Schedule 12 – Multigenerational Home Renovation Tax Credit form to calculate your credit. This form is where you’ll list your renovation expenses (up to $50,000) and it will compute 15% of that as your credit. The final credit amount then goes on line 45355 of your income tax return . For 2025 claims, ensure you (and any family member splitting the credit with you) each fill out Schedule 12 with your share of the expenses. Don’t worry – if you use tax software, it will have this built-in; if you have an accountant, just give them your total eligible costs and they’ll know what to do. Once filed, the credit will either reduce your taxes owing or, if you’ve already paid your taxes through the year, result in a sweet refund check. Up to $7,500 will come right back to you from the government. 🎉

Remember: The MHRTC is a refundable credit, so even if your tax bill is zero, you still get the full amount back as a refund . This is a major benefit for retirees or lower-income families – you won’t “lose” the credit just because you don’t have taxable income. As long as you qualify and file for it, the refund is yours. Also, you cannot double-claim expenses for this and another credit (for example, the same $5,000 cannot be used for both the MHRTC and the medical expense tax credit or Home Accessibility Tax Credit). Pick the credit that gives you the best benefit for each expense – in most cases, the MHRTC’s 15% is more generous, and it covers a wider range of renovation costs.

Fast-Track Your Claim: Kozak Reno goes the extra mile by guiding you through the application process. Our experts will ensure you have the right Schedule 12 forms, help you tally the expenses, and double-check everything so you can file confidently. It’s part of our Expert Customer Support commitment – we don’t just build and disappear; we’re here to make sure you actually get the credit you’re entitled to.

Why 2025 Is the Perfect Time to Renovate (Don’t Miss Out!)

If you’ve been on the fence about adding that in-law suite or secondary unit, 2025 is an ideal year to act. Here’s why savvy Ontario homeowners are seizing the moment:

• No Changes, Just Chances: The Multigenerational Home Renovation Tax Credit remains fully in force for 2025 – same great benefit as before . There’s no guarantee how long such incentives will last (they’re subject to future budgets), but right now the full $7,500 is on the table. Every year you wait is another year without the upgrade for your family, and you risk policy changes down the line.
• Rising Construction Costs: Inflation in materials and labor means a project that costs $50k today might cost significantly more in a few years. By renovating now, you cap your costs and let the government pay part of the bill. Essentially, the credit neutralizes the impact of HST and then some, making your renovation dollars go further.
• Benefit Sooner – for Your Family and Your Finances: An earlier renovation means your parent or loved one enjoys improved living conditions now – safer, more comfortable, closer to family. And you start saving on costs like nursing home fees or rent sooner as well. Plus, once the unit is built, it could generate rental income in the future (if, say, your relative no longer needs it years down the road). It’s an investment that can pay financial returns beyond the tax credit.
• Ontario Supportive Climate: With housing affordability a big issue, governments are encouraging multigenerational living and adding housing units. It’s unlikely you’ll hit bureaucratic roadblocks – permits for secondary suites are commonly approved (municipalities like Toronto, Ottawa, etc. have programs to support this). In fact, building a legal secondary suite can increase your property value and help address housing shortages, aligning with community goals. Kozak Reno’s knowledge of local regulations will help expedite approvals so you can get started faster.
• Kozak Reno’s Best Deals: This year, we’re offering to beat any competitor’s quote by 5%, on top of the tax credit. That means you save twice – once upfront on the project cost, and again when you claim your refund. We also continue to provide free detailed consultations. In 2025, our schedule is filling up with families eager to use the MHRTC, but we’ve reserved capacity for clients who value quality and timing. Don’t wait until peak renovation season – get on our calendar now to lock in your project timeline (and ensure completion in time to claim your credit!).

Don’t miss out on $7,500 in free money! Contact Kozak Reno today to plan your multigenerational home renovation and claim your credit. We’ll handle everything from design and permits to construction and paperwork support. It’s never been easier or more rewarding to create the perfect space for your loved ones.

Why Choose Kozak Reno as Your Renovation Partner?

Choosing the right contractor can make or break your multigenerational renovation experience – and your ability to claim the tax credit without headaches. Kozak Reno is a trusted Ontario renovator that puts you, the customer, first. We combine unmatched expertise with a customer-centric approach that ensures your project is smooth, on-time, and on-budget. Here’s what sets us apart:

• Local, Bonded & Insured: We’re a proudly local Ontario business with proper licensing, bonding, and insurance. That means you can trust our team in your home and have peace of mind knowing you’re protected. We know Ontario building codes and bylaws inside-out, ensuring your new secondary suite meets all requirements safely and legally. (This is crucial for the tax credit – a reno that isn’t up to code could be disqualified. With Kozak, that’s never a concern.)
• 25+ Years of Experience: Our seasoned professionals have decades of hands-on experience creating beautiful home additions and suites. We’ve seen it all – from basement apartments to standalone garden suites – so we know how to avoid common pitfalls. That expertise saves you time and money. We’ll advise you on cost-effective solutions and design choices that benefit your family and maximize your tax credit. When challenges arise, we solve them quickly thanks to the knowledge that only 25+ years can bring.
• Expert Customer Support: From the first call to the final walkthrough (and beyond), our focus is on you. We listen to your needs and concerns, whether it’s accommodating Grandpa’s mobility scooter or ensuring minimal disruption to your household during construction. Our friendly project managers keep you updated at every stage. We also assist with the tax credit paperwork, answering any questions your accountant (or you) might have about the renovation expenses. You’ll never feel “on your own” – we’re here to help at every step, with a smile.
• Guaranteed Time Frame: We respect your time and the importance of meeting the tax year deadline. Kozak Reno commits to a guaranteed timeline for project completion – no endless delays or blown schedules. We plan meticulously and staff appropriately to finish your renovation by the agreed date. This guarantee isn’t just about convenience; it’s about ensuring you can claim your tax credit in the intended year without stress. (Remember, the credit must be claimed for the year the reno is done – we make sure that happens on schedule .) If we ever did miss the deadline, that’s on us – but our track record speaks for itself. We deliver on time.
• Lifetime Warranty: We take quality seriously. That’s why we offer a Lifetime Warranty on our workmanship. If something isn’t right, or if any aspect of our work fails, we fix it for free, forever. This level of confidence comes from using premium materials and skilled craftsmen. For you, it means the secondary suite we build will stand the test of time – ensuring your parent or loved one has a safe, comfortable home for life. And if you ever sell your house, this warranty is a great selling point to reassure the next owner.
• Price Beat by 5%: We know budget is a big concern, and we’re committed to giving you the best value. That’s why we’ll beat any competitor’s written quote by 5%. Not only do you get top-notch quality and service, you also get the best price in town. This, combined with the tax credit, means your multigenerational renovation is more affordable than ever. If you’ve been holding off because of cost, now’s the time – challenge us with a quote and watch us exceed your expectations and save you money.

Choosing Kozak Reno means choosing a trusted, client-focused partner. We don’t just build walls and install fixtures – we build relationships. Our goal is to make you so happy with your renovation (and the tax refund that comes with it) that you’ll happily refer us to friends and family. Your project isn’t just another job to us; it’s a chance to improve your family’s quality of life, and we take that responsibility to heart.

Transform your home and claim your $7,500 credit with confidence! Contact Kozak Reno now to schedule your free consultation. Let’s turn your multigenerational living dream into a reality – with Local Expertise, Guaranteed Results, and Maximum Savings for you.