Excise Tax Act (R.S.C., 1985, c. E-15)

Meaning of relation

• 255 (1) In this section, relation of a particular individual means another individual who is related to the particular individual or who is a former spouse or common-law partner of the particular individual.

• Marginal note:Cooperative housing rebate

  (2) Where

  • (a) a cooperative housing corporation has paid tax in respect of a taxable supply to the corporation of a residential complex,

  • (b) the corporation makes a supply of a share of the capital stock of the corporation to a particular individual and transfers ownership of the share to the particular individual,

  • (c) at the time the particular individual becomes liable or assumes liability under an agreement of purchase and sale of the share entered into between the corporation and the particular individual, the particular individual is acquiring the share for the purpose of using a residential unit in the complex as the primary place of residence of the particular individual or a relation of the particular individual,

  • (d) the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable for the supply to the particular individual of the share or an interest in the corporation, complex or unit, is less than $472,500,

  • (e) after the construction or substantial renovation of the complex is substantially completed and before possession of the unit is given to the particular individual as an incidence of ownership of the share, the unit was not occupied by any individual as a place of residence or lodging, and

  • (f) either

    • (i) the first individual to occupy the unit as a place of residence after possession of the unit is given to the particular individual is the particular individual or a relation of the particular individual, or

    • (ii) the particular individual makes a supply by way of sale of the share and ownership of the share is transferred to the recipient of that supply before the unit is occupied by any individual as a place of residence or lodging,

  the Minister shall, subject to subsection (3), pay a rebate to the particular individual equal to

  • (g) if the total consideration is not more than $367,500, an amount equal to 1.71% of the total consideration, and

  • (h) if the total consideration is more than $367,500 but less than $472,500, the amount determined by the formula

    A × [($472,500 - B)/$105,000]

    where

    A

    is the lesser of $6,300 and 1.71% of the total consideration, and

    B

    is the total consideration.

• (2.01) [Repealed, 2026, c. 2, s. 6]

• (2.02) [Repealed, 2026, c. 2, s. 6]

• Marginal note:Additional cooperative housing rebate — first-time home buyer

  (2.1) If

  • (a) a particular individual is entitled to claim a rebate under subsection (2) in respect of a share of the capital stock of a cooperative housing corporation that entitles the particular individual to the possession of a residential unit in a residential complex or the particular individual would be entitled to claim a rebate under subsection (2) in respect of such a share if the references in paragraphs (2)(d) and (h) to “$472,500” were read as “$1,575,000”,

  • (b) the agreement of purchase and sale referred to in paragraph (2)(c) is entered into after March 19, 2025 and before 2031,

  • (c) the construction or substantial renovation of the residential complex begins before 2031 and is substantially completed before 2036,

  • (d) ownership of the share is transferred to the particular individual before 2036, and

  • (e) the particular individual

    • (i) at the time the particular individual becomes liable or assumes liability under the agreement of purchase and sale, is acquiring the share for the purpose of using the residential unit as their primary place of residence,

    • (ii) is the first individual to occupy the residential unit as a place of residence after possession of the residential unit is transferred to the particular individual, and

    • (iii) is a first-time home buyer at the particular time at which ownership of the share is transferred to the particular individual,

  the Minister shall, subject to subsection (3), pay a rebate to the particular individual, in addition to the rebate, if any, payable under subsection (2) to the particular individual, equal to

  • (f) if the total consideration within the meaning of paragraph (2)(d), in respect of the share and any interest in the cooperative housing corporation or the residential complex, is not more than $1,050,000, the amount determined by the formula

    A − B

    where

    A

    is the lesser of $50,000 and 4.77% of the total consideration, and

    B

    is the amount of the rebate, if any, under subsection (2) that the particular individual is entitled to claim in respect of the share, and

  • (g) if the total consideration within the meaning of paragraph (2)(d), in respect of the share and any interest in the cooperative housing corporation or the residential complex, is more than $1,050,000 but less than $1,575,000, the amount determined by the formula

    C × [($1,575,000 − D) ÷ $525,000]

    where

    C

    is the lesser of $50,000 and 4.77% of the total consideration, and

    D

    is the total consideration.

• Marginal note:Application for rebate

  (3) A rebate under this section in respect of a share of the capital stock of a cooperative housing corporation shall not be paid to an individual unless the individual files an application for the rebate within two years after the day ownership of the share is transferred to the individual.

Marginal note:Definitions

• 256 (1) In this section,

  relation

  relation of a particular individual means another individual who is related to the particular individual or who is a former spouse or common-law partner of the particular individual; (proche)

  single unit residential complex

  single unit residential complex includes

  • (a) a multiple unit residential complex that does not contain more than two residential units, and

  • (b) any other multiple unit residential complex if it is described by paragraph (c) of the definition residential complex in subsection 123(1) and contains one or more residential units that are for supply as rooms in a hotel, motel, inn, boarding house, lodging house or similar premises and that would be excluded from being part of the residential complex if the complex were a residential complex not described by that paragraph. (immeuble d’habitation à logement unique)

• Marginal note:Rebate for owner-built homes

  (2) Where

  • (a) a particular individual constructs or substantially renovates, or engages another person to construct or substantially renovate for the particular individual, a residential complex that is a single unit residential complex or a residential condominium unit for use as the primary place of residence of the particular individual or a relation of the particular individual,

  • (b) the fair market value of the complex, at the time the construction or substantial renovation thereof is substantially completed, is less than $450,000,

  • (c) the particular individual has paid tax in respect of the supply by way of sale to the individual of the land that forms part of the complex or an interest therein or in respect of the supply to, or importation by, the individual of any improvement thereto or, in the case of a mobile home or floating home, of the complex (the total of which tax under subsection 165(1) and sections 212 and 218 is referred to in this subsection as the “total tax paid by the particular individual”),

  • (d) either

    • (i) the first individual to occupy the complex after the construction or substantial renovation is begun is the particular individual or a relation of the particular individual, or

    • (ii) the particular individual makes an exempt supply by way of sale of the complex and ownership of the complex is transferred to the recipient before the complex is occupied by any individual as a place of residence or lodging,

  the Minister shall, subject to subsection (3), pay a rebate to the particular individual equal to the amount determined by the formula

  A × ($450,000 - B)/$100,000

  where

  A

  is the lesser of 36% of the total tax paid by the particular individual before an application for the rebate is filed with the Minister in accordance with subsection (3), and

  • (i) if all or substantially all of that tax was paid at the rate of 5%, $6,300,

  • (ii) if all or substantially all of that tax was paid at the rate of 6%, $7,560, and

  • (iii) in any other case, the lesser of $8,750 and the amount determined by the formula

    (C × $2,520) + (D × $1,260) + $6,300

    where

    C

    is the extent (expressed as a percentage) to which that tax was paid at the rate of 7%, and

    D

    is the extent (expressed as a percentage) to which that tax was paid at the rate of 6%, and

  B

  is the greater of $350,000 and the fair market value of the complex referred to in paragraph (b).

• (2.01) [Repealed, 2026, c. 2, s. 7]

• (2.02) [Repealed, 2026, c. 2, s. 7]

• (2.03) [Repealed, 2026, c. 2, s. 7]

• Marginal note:Additional owner-built home rebate — first-time home buyer

  (2.1) If

  • (a) a particular individual is entitled to claim a rebate under subsection (2) in respect of a residential complex that is a single unit residential complex or a residential condominium unit or would be so entitled if the references in that subsection to “$450,000” were read as “$1,500,000”,

  • (b) the construction or substantial renovation of the residential complex begins after March 19, 2025 and before 2031 and is substantially completed before 2036, and

  • (c) the particular individual

    • (i) is the individual for whom the residential complex is being constructed or substantially renovated for use as their primary place of residence,

    • (ii) is the first individual to occupy the residential complex as a place of residence after the construction or substantial renovation of the residential complex is begun,

    • (iii) first occupies the residential complex as a place of residence before 2036, and

    • (iv) is a first-time home buyer at the particular time that is the earlier of the time at which the residential complex is first occupied by the particular individual as a place of residence and the time at which the construction or substantial renovation of the residential complex is substantially completed,

  the Minister shall, subject to subsection (3), pay a rebate to the particular individual, in addition to the rebate, if any, payable under subsection (2) to the particular individual, equal to the amount determined by the formula

  A × [($1,500,000 − B) ÷ $500,000] − C

  where

  A

  is the lesser of $50,000 and the total tax paid by the particular individual, within the meaning of paragraph (2)(c), in respect of the residential complex before

  • (i) if the fair market value of the residential complex referred to in paragraph (2)(b) is less than $450,000, an application for the rebate under subsection (2) in respect of the residential complex is filed with the Minister in accordance with subsection (3), and

  • (ii) in any other case, an application for the rebate under this subsection in respect of the residential complex is filed with the Minister in accordance with subsection (3),

  B

  is the greater of $1,000,000 and the fair market value of the residential complex referred to in paragraph (2)(b), and

  C

  is the amount of the rebate, if any, under subsection (2) that the particular individual is entitled to claim in respect of the residential complex.

• Marginal note:Homes occupied before substantial completion

  (2.11) If an individual acquires an improvement in respect of a residential complex that the individual is constructing or substantially renovating and tax in respect of the improvement becomes payable by the individual more than two years after the day the residential complex is first occupied as described in subparagraph (2)(d)(i) or (2.1)(c)(ii), as applicable, that tax shall not be included in determining the total tax paid by the individual within the meaning of paragraph (2)(c).

• Marginal note:Mobile homes and floating homes

  (2.2) For the purposes of this section, where

  • (a) a particular individual purchases or imports a mobile home or floating home that has never been used or occupied by any individual as a place of residence or lodging and does not file with the Minister, or submit to the supplier, an application for a rebate in respect of the home under any of subsections 254(2) and (2.1) and 254.1(2) and (2.1),

  • (b) the particular individual is acquiring or importing the mobile home or floating home for use as the primary place of residence of the particular individual or of a relation of the particular individual, and

  • (c) the first individual to occupy the mobile home or floating home at any time is the particular individual or a relation referred to in paragraph (b), or the particular individual at any time transfers ownership of the home under an agreement for an exempt supply by way of sale of the home,

  the particular individual is deemed to have constructed the mobile home or floating home and to have substantially completed the construction immediately before the earlier of the times referred to in paragraph (c) and, in the case of a mobile home or floating home imported by the individual, any use or occupation of the home outside Canada is deemed not to be use or occupation of the home.

• Marginal note:Application for rebate

  (3) A rebate under this section in respect of a residential complex shall not be paid to an individual unless the individual files an application for the rebate on or before

  • (a) the day (in this subsection referred to as the “due date”) that is two years after the earliest of

    • (i) the day that is two years after the day on which the complex is first occupied as described in subparagraph (2)(d)(i),

    • (ii) the day on which ownership is transferred as described in subparagraph (2)(d)(ii), and

    • (iii) the day on which construction or substantial renovation of the complex is substantially completed; or

  • (b) any day after the due date that the Minister may allow.

Marginal note:Rebate to owner of land leased for residential purposes

• 256.1 (1) If an exempt supply of land described by section 6.1 or 6.11 of Part I of Schedule V is made to a particular lessee who is acquiring the land for the purpose of making a particular supply of property or a service that includes the land or a particular supply of a lease, licence or similar arrangement in respect of property that includes the land, and the particular supply

  • (a) is an exempt supply of property or a service, other than a supply that is exempt only by virtue of paragraph 6(b) of Part I of Schedule V, that

    • (i) includes giving possession or use of a residential complex, or of a residential unit forming part of a residential complex, to another person under a lease, licence or similar arrangement entered into for the purpose of its occupancy by an individual as a place of residence or lodging, or

    • (ii) is described by section 7 of Part I of Schedule V, other than an exempt supply described by paragraph 7(a) of that Part made to a person described in subparagraph 7(a)(ii) of that Part, and

  • (b) will result in the particular lessee being deemed under any of subsections 190(3) to (5) and section 191 to have made a supply of property that includes the land at a particular time,

  the Minister shall, subject to subsection (2), pay a rebate, to each person (in this subsection referred to as the “landlord”) who is an owner or lessee of the land and who is not the particular lessee, equal to the amount determined by the formula

  A - B

  where

  A

  is the total of all tax that, before the particular time, became or would, but for section 167, have become payable by the landlord in respect of the last acquisition of the land by the landlord and the tax that was payable by the landlord in respect of improvements to the land that were acquired, imported or brought into a participating province by the landlord after that last acquisition and that were used before the particular time in the course of improving the property that includes the land, and

  B

  is the total of all other rebates and input tax credits that the landlord was entitled to claim in respect of any amount included in the total for A.

• Marginal note:Application for rebate

  (2) A rebate shall not be paid under subsection (1) to an owner or lessee of land in respect of a supply of the land made to a person who will be deemed under any of subsections 190(3) to (5) and section 191 to have made on a particular day another supply of the property that includes the land, unless the owner or lessee, as the case may be, files an application for the rebate on or before the day that is two years after the particular day.