Principal Issues: Whether the costs associated with building a secondary unit, while concurrently building a newly constructed housing unit, where the two housing units share a main entrance, but the secondary unit has its own private entrance, would qualify for the Multigenerational Home Renovation Tax Credit (MGHRTC).
Position: Yes, provided that all the eligibility criteria for claiming a MGHRTC are met, the credit may be claimed regardless of whether a principal housing unit (that meets the definition of eligible dwelling) is built before, or concurrently with, a secondary unit. Nevertheless, there must be a reasonable expectation that both units will be ordinarily inhabited within 12 months after the end of the renovation period.
Reasons: The wording in paragraph (b) of the definition of “eligible dwelling” and paragraph (a) of the definition of “eligible individual.” The former definition refers to the reasonable expectation that the housing unit will be ordinarily inhabited within 12 months after the end of the renovation period. Similarly, the latter definition refers to the individual’s intention to ordinarily reside in the eligible dwelling within 12 months after the end of the renovation period.
