Principal Issues: 1. Whether expenses incurred to undertake certain renovations would be eligible for the home accessibility tax credit (HATC) in a given situation where the renovations are carried out to create a safe play and therapy area in one's basement for a child with a severe and prolonged impairment in mental functions. 2. Whether occupational therapy equipment that is mounted to the basement wall would be eligible for the HATC.
Position: 1. Question of fact - depending on whether the renovation or alteration is of an enduring nature and integral to the eligible dwelling, the expenses are qualifying expenditures, and all the other requirements under section 118.041 of the Act are met. Examples of qualifying renovations are given in the context of impairments in mental functions. 2. No.
Reasons: 1. The requirements in section 118.041 .of the Act. 2. Paragraph (a) of the definition of “qualifying expenditure” in subsection 118.041(1) excludes an outlay or expense to acquire property that can be used independently of the qualifying renovation.