Canadian NAIOP Chapters Issue Statement on Rebate Increase to Incentivize Rental Construction
The Depart of Finance Canada has announced that it will introduce legislation calling for the removal of the Goods and Services Tax (GST) on the construction of new construction of residential housing. The move to increase the current GST rental rebate from 36% to 100% is intended to incentivize the increase of the construction of new “purpose-built rental housing” throughout Canada. The 100% GST rental rebate will apply to rental construction projects that begin on and after Sept. 14, 2023, and end on Dec. 31, 2030. Construction projects receiving the rebate must also be completed by Dec. 31, 2035.
The four Canadian NAIOP chapters have joined together and issued a media release that applauded the Government of Canada’s announcement and the decision by the governments of Ontario, British Columbia, and Newfoundland and Labrador to match the elimination at the provincial level.
Chris Ollenberger, executive director of NAIOP Calgary, said: “We are pleased that the government recognizes that the GST/HST is an impediment to building new purpose-built rental housing in Canada. This is a great step forward towards getting more housing built, faster. We hope all provinces will match the federal initiative.” NAIOP members hope to also meet with the Honourable Sean Fraser, minister of housing, infrastructure and communities, for a discussion on other policies to address Canada’s housing crisis.