HST rebate on eligible purpose-built rental housing

The rebate will provide a 100% rebate of the New Brunswick portion of the HST for all eligible purpose-built rental housing.

It would apply to construction that began between November 15, 2024, and December 31, 2027, and has been substantially completed by December 31, 2029.

The rebate will be similar to one offered by the federal government and will be administered through the Canada Revenue Agency.

The provincial government has received the required federal approval for the proposed program.

There are still federal steps that are required including a Regulation and Canda Revenue Agency (CRA) preparatory work.

The program follows the existing federal rebate program, and the eligible and ineligible properties are as follows:

Eligible properties:

• residential structures that have at least four units each containing private kitchen facilities, a private bath and a private living area, or 10 private rooms or suites
• at least 90% of residential units are held for long-term residential rental purposes
• a project that converts an existing non-residential building, such as an office building, to a residential may also be eligible if all other conditions are met

Ineligible properties:

• condominium units
• single-family housing
• duplexes
• triplexes
• owned houses situated on leased land and sites in residential trailer parks
• substantial renovation of an existing residential complex

The NB rebate will provide a 100% rebate of the 10% New Brunswick portion of the HST for all eligible properties for which construction begins on or after November 15, 2024 and on or before December 31, 2027, and that is substantially completed by December 31, 2029. It will lower costs for rental units’ developers in the province, potentially increasing capital for additional sites.

The government investment in this proposed program is about $20 million in 2025-2026, $30 million in 2026-2027 and $35 million in 2027-2028.