October 4, 2023
The provincial government announces an HST rebate program for new rental builds to help create more housing for Islanders.
The program will provide a full rebate of the provincial portion of the HST (10 per cent) on qualified rental housing projects up to a maximum of $35,000 per unit. The construction must have started on or after September 14, 2023 and must be completed by the end of 2028 to receive the full rebate. Projects that reach completion after 2028 will qualify for only a portion of the rebate until 2035. The tax rebate will be capped on the first $350,000 in value per unit.
The HST rebate on new rental builds can be used in conjunction with other programs to support housing developments. This program is aimed at reducing the cost of new construction to assist with adding new inventory to the housing market.
“Our population in PEI continues to grow, increasing demand for housing, plus interest and rental rates continue to climb. “Our goal is to try and address some of these challenges quickly and efficiently, to benefit Islanders, and this program is one way of supporting that goal.– PEI Minister of Finance, Jill Burridge
“The cost to build has become a significant roadblock to new housing developments that are affordable for residents,” said Minister of Housing, Land and Communities Rob Lantz. “This rebate will help get new housing developments off the ground. We need to work together, and work quickly, to address our vacancy rates and create more housing options.”
The program will be reviewed in three years to determine if it is addressing housing challenges in Prince Edward Island.
Government intends to harmonize our program with the Federal Government to streamline the application and administration process for both rebate programs for builders and landlords.