Rehabilitation tax credit

The rehabilitation tax credit compensates real estate developers for their work restoring buildings that were originally constructed prior to 1936 and conform to the following requirements:

  • Is used for non-residential rental activities
  • Has not been physically moved since 1936
  • 50% or more of the existing external walls are retained as external walls
  • 75% or more of the existing external walls are retained as internal or external walls
  • 75% or more of the existing internal structural framework is retained in place

The tax credit is intended to prevent the decline of urban areas. The basic tax credit is 10% of the rehabilitation costs incurred, though the credit can increase in certain cases to 20%. The credit is only available to the title holder of a property.