Grab These 15 Government Grants, Rebates & Tax Credits Before They’re Gone!
If you’re a first time home buyer in Alberta you may be feeling a mixture of excitement, and trepidation. True me, you’re perfectly normal!
Let us help you navigate the different aspects of home buying so you can feel more confident as you go through the process.
We’ve put together a list of the current grants and programs that the province of Alberta has put in place to help alleviate home-buying anxieties.
First Time Home Buyer’s Tax Credit
As a first time home purchaser in Alberta, you may qualify for what ends up being a rebate on your following year’s federal tax return. As long as you and your home qualify, you could receive up to $750 back on your tax payment.
Some people find the receipt of the tax credit confusing because of the way you must fill out the tax form. On the correct line of the tax form, you’ll have to write off $5,000, which eventually calculates to the $750 credit as you work your way through the various lines on the tax form.
You won’t receive the rebate in the same year you purchase the home, which may confuse some people. If, for example, you purchase the home in 2019, you’ll receive the rebate after you file your 2019 tax return, which will occur early in 2020.
You could end up having to wait a dozen months or more after purchasing the home to receive the rebate.
The First-Time Home Buyers’ Tax Credit does have a few restrictions on qualification, which are detailed at the link above. Most Canadian citizens, including Alberta citizens, will be able to qualify, though.
Also, for those Canadians who have begun saving for retirement through an employer’s Registered Retirement Savings Plan (RRSP), borrowing money from your savings in this program can help you come up with the down payment you need for the purchase of your first home.
The RRSP Home Buyers’ Plan (HBP) program rules for first-time home purchasers allow for use of any amount in your RRSP account up to a maximum of $25,000 for this purpose.
Should you and your spouse or partner be purchasing a home together for the first time, each of you is eligible to borrow up to $25,000 from your personal RRSP, meaning you can end up with a total of $50,000 for the down payment. Repayment of the loan occurs over a 15-year period.
Goods and Services Tax Credit
Another option available to both Alberta and Canadian residents trying to purchase a home for the first time is through the GST/HST credit, which is a rebate for up to 5% of the federal sales tax paid on real estate taxes or retail purchases you may have made for remodeling the home.
Residents who meet the income thresholds for receiving this credit don’t have to apply for it. To qualify, home buyers must be at least 19 years old, be married or have a common-law partner, and be living with at least one child.
If you meet these criteria, your income level on the previous year’s income tax return will determine whether you qualify to receive the tax credit.
Residential Access Modification Program (RAMP)
If you’re purchasing a first home in Alberta, and you need to make renovations to the home to make it safer for someone with a physical disability, you may qualify for the Residential Access Modification Program (RAMP).
This program provides a grant of up to $7,500 annually for those Albertans who meet certain income guidelines. The proposed project must be eligible under the program rules and must be a permanent type of construction.
Energy Efficiency Programs (Federal & Provincial)
Several programs are available to first-time home buyers in Alberta who want to do some renovations on the home after taking possession to create better energy efficiency. We’ve collected information about some of the programs here.
You can receive a refund of as much as 25% of your home mortgage insurance premium when remodeling an existing home to install energy efficiency features.
You’ll need to apply for the CHMC Green Home program, and you may need to allow an inspection of the home’s energy efficient features before and after the remodeling work. Genworth Canada provides a similar program for those who use Genworth insurance premiums.
Energy Efficiency Alberta Home Improvement Rebate Program
When you perform renovations to your home that result in energy savings, such as by installing insulation, new windows, a tankless water heater, or a drain water heat recovery system, you may receive some of what you spent on the work in the form of a rebate.
Specific qualification information is available at the Energy Efficiency Albertaweb site. Rebate amounts depend on the amount of energy savings you receive, but they can range from a couple hundred dollars to several thousand dollars for large renovation jobs.
Energy Efficiency Alberta Appliance Rebate Program
When you replace an old appliance with an energy efficient appliance, such as a new refrigerator, a smart thermostat, or an efficient washing machine, you may be able to qualify for additional rebates of up to $75 for one appliance or $150for two appliances.
Energy Efficiency Alberta Solar Power Program
If you’re buying or building a first home, and you’d like to add solar panels to the building, you may be eligible for rebates for part of the money you spend on the installation.
Qualification rules and rebate amounts vary significantly for this solar energy program, so visit the link for more details.
Energy Efficiency Programs (Municipal)
Drayton Valley
Water efficiency can be enhanced by replacing old fixtures and appliances with water saving models, some of which are listed below. By making some small changes you can save money on your monthly water bill, help to preserve our ultimate resource, and receive credit on your utility account!
The Town of Drayton Valley is proud to support a water conservation initiative which runs each year. This program is available for customers receiving Town water service who choose to install approved fixtures or appliances which reduce the amount of water consumed. Eligible fixtures and appliances are:
-WaterSense® certified toilet.
-Water pressure reducers
-Energy Star® certified washing machines
-Energy Star® certified dishwashers
-Energy Star® certified water heaters
In order to receive your Town utility account credit, you are required to provide proof of purchase and installation of the device (eg. store receipt and tradesperson’s receipt); this must accompany the attached form completed with your information, including a valid Town utility account number.
Residential Customers*
For the calendar year of 2023, if you install water efficient fixtures or appliances before December 31st, you may qualify for a credit of $100 on your Town utility bill. There is a limitation of one credit of $100 per year per address.
Additionally, each upgrade entitles you to one entry in a draw for a credit of $500 on your Town utility bill. All water consumption reducing installations must be for the current year and must be completed prior to December 31, 2023 to qualify.
Commercial Customers*
For the calendar year of 2023, if you install between one and ten water efficient fixtures or appliances before December 31st, you will qualify for a credit of $100 on your Town utility bill. Each replacement of one to ten units will qualify your business for a $100 credit* (eg. sixteen WaterSense® certified toilets installed = $200 utility account credit).
*By purchasing your new water saving fixture or appliance in Drayton Valley, you may be eligible for an additional $50 rebate on your Town utility account.
Application and P.O.U.R Brochure
Brazeau County
Brazeau County is committed to helping our citizens reduce energy costs and greenhouse gasemissions.The Municipal Energy Efficiency Rebate Program will help residents receive great savings for qualifying homeimprovements. The savings are made even greater when combined with rebates from Energy Efficiency Alberta and any in-store retail rebates.All Brazeau County residents are encouraged to take steps to increase energy efficiency and reduce water consumption. This greatly benefits both your wallet and the environment. When you use less electricity (whether in heating or lighting), you save on your monthly bills, and you require less electricity to be produced,resulting in reduced greenhouse gas emissions. When you use less water, you are accomplishing the same thing: reducing the amount of energy required to process and deliver it.This brochure and October 2018 additions provide a guide for Brazeau County residents for the savings available through the Municipal Energy Efficiency Rebate Program. More information on Provincial savings can be found at www.efficiencyalberta.ca. The rebate savings form can be found here. The solar rebate form can be found here.Keep
