Further clarification of the HST rebate for customers building custom built homes
New housing rebate – owner‐built homes
An enhanced B.C. new housing rebate will be provided for owner‐built homes where an individual constructs or substantially renovates a house for use as a primary place of residence of the individual or a relation of the individual or an individual hires another person to do such new construction or substantial renovation. The enhanced new housing rebate for owner‐built homes will be available if on or after April 1, 2012: the new construction or substantial renovation of the home becomes substantially completed; and the rebate application is filed with the CRA. The maximum rebate for owner‐built homes will depend on whether the individual owner paid the HST on the land.
No HST paid on land
Where the HST was not paid on the land, the owner will be entitled to a B.C. new housing rebate of 71.43 per cent of the provincial component of the HST paid on qualifying construction expenses (which would not include land), up to a maximum rebate amount of $28,475 (i.e., 67 per cent of $42,500).
Time period for claiming B.C. New Housing Rebates
The time‐limits for claiming the existing B.C. new housing rebates will continue to apply for the enhanced B.C. new housing rebates.9 However, for certain housing types (i.e., houses acquired through the purchase of qualifying shares in a housing co‐op and owner‐built housing), the existing or enhanced B.C. new housing rebate will be available only where the application is filed with the CRA before April 1, 2017.
Full document is available at: http://www.hstinbc.ca/media/2012_housing_rules_.pdf