Making Life More Affordable for Canadians Act (S.C. 2026, c. 2)
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Assented to 2026-03-12
PART 2Amendments to the Excise Tax Act and Related Regulations (continued)
R.S., c. E-15Excise Tax Act (continued)
8 (1) The description of C in subsection 256.2(4) of the Act is replaced by the following:
- C
- is the total of
(i) the amount of the rebate, if any, under subsection 254.1(2) that the recipient of the exempt supply by way of sale is entitled to claim in respect of the complex or unit, and
(ii) the amount of the rebate, if any, under subsection 254.1(2.1) that the recipient of the exempt supply by way of sale is entitled to claim in respect of the complex or unit.
(2) The description of C in subsection 256.2(5) of the Act is replaced by the following:
- C
- is the total of
(i) the amount of the rebate, if any, under subsection 255(2) that the recipient of the exempt supply of the unit was entitled to claim in respect of the unit, and
(ii) the amount of the rebate, if any, under subsection 255(2.1) that the recipient of the exempt supply of the unit was entitled to claim in respect of the unit.
(3) Subsections (1) and (2) are deemed to have come into force on March 20, 2025.
9 (1) Paragraph 262(3)(a) of the Act is replaced by the following:
(a) subject to paragraphs (b) to (c.1), the references in sections 254 to 256 to a particular individual shall be read as references to all of those individuals as a group;
(2) Subsection 262(3) of the Act is amended by striking out “and” at the end of paragraph (c) and by replacing paragraph (d) with the following:
(c.1) the references in paragraphs 254(2.1)(e), 254.1(2.1)(e), 255(2.1)(e) and 256(2.1)(c), in the description of B in each of paragraphs 254(2.1)(f), 254.1(2.1)(f) and 255(2.1)(f) and in the description of C in subsection 256(2.1) to the particular individual are to be read as references to any of those individuals;
(d) only one of those individuals may apply for the rebate under subsection 254(2), 254.1(2), 255(2) or 256(2), as the case may be, in respect of the complex or share; and
(e) only one of those individuals may apply for the rebate under subsection 254(2.1), 254.1(2.1), 255(2.1) or 256(2.1), as the case may be, in respect of the complex or share and the individual that applies for that rebate must meet the criteria set out in paragraph 254(2.1)(e), 254.1(2.1)(e), 255(2.1)(e) or 256(2.1)(c), as the case may be.
(3) Subsections (1) and (2) are deemed to have come into force on March 20, 2025.
10 (1) The Act is amended by adding the following after section 263.2:
Marginal note:Making an application
263.3 (1) For the purposes of this section, an individual makes an application if they file an application with the Minister or submit an application to a builder.
Marginal note:Restriction on rebate — first-time home buyer
(2) A particular rebate under subsection 254(2.1), 254.1(2.1), 255(2.1) or 256(2.1), for which a particular individual makes an application, shall not be paid if
(a) after March 19, 2025 and before the particular time referred to in subparagraph 254(2.1)(e)(iii), 254.1(2.1)(e)(iii), 255(2.1)(e)(iii) or 256(2.1)(c)(iv), as the case may be, the particular individual, or another individual who is at the particular time a spouse or common-law partner of the particular individual, makes an application for another rebate under any of those subsections; and
(b) the particular individual or the other individual, as the case may be, is entitled to the other rebate.
Marginal note:Deemed application — spouse or common-law partner
(3) If, after March 19, 2025, a particular individual makes an application for, and is entitled to, a rebate under subsection 254(2.1), 254.1(2.1), 255(2.1) or 256(2.1), if the rebate is payable to a group of individuals and if another individual who is a member of that group is a spouse or common-law partner of the particular individual at the particular time referred to in subparagraph 254(2.1)(e)(iii), 254.1(2.1)(e)(iii), 255(2.1)(e)(iii) or 256(2.1)(c)(iv), as the case may be, the other individual is deemed, for the purposes of subsection (2), to file at the particular time an application for the rebate and to be entitled to the rebate.
Marginal note:Definition of agreement of sale
263.4 (1) For the purposes of this section, agreement of sale, in respect of a residential complex, means an agreement that is entered into by a builder of the residential complex or by a cooperative housing corporation that owns the residential complex and under which the following is supplied by way of sale:
(a) in the case of a builder,
(i) the residential complex, or
(ii) a building or part of a building in which a residential unit forming part of the residential complex is located; or
(b) in the case of a cooperative housing corporation, a share of the capital stock of the cooperative housing corporation, the holder of which is entitled to possession of a residential unit located in the residential complex.
Marginal note:Non-arm’s length — groups of individuals
(2) For the purposes of this section,
(a) a group of individuals and a particular individual are not dealing with each other at arm’s length if
(i) the particular individual is a member of the group, or
(ii) the particular individual is not dealing at arm’s length with one or more members of the group; and
(b) a particular group of individuals and another group of individuals are not dealing with each other at arm’s length if
(i) one or more individuals are members of both groups, or
(ii) one or more members of the particular group are not dealing at arm’s length with one or more members of the other group.
Marginal note:First-time home buyer rebates — variation, alteration or assignment
(3) For the purposes of subsections (4) and (5) and paragraphs 254(2.1)(b), 254.1(2.1)(b) and 255(2.1)(b), if an agreement of sale in respect of a residential complex is entered into before March 20, 2025 and the agreement of sale is later varied, altered or assigned such that it is considered to be entered into after March 19, 2025, the agreement of sale is deemed to have been entered into before March 20, 2025.
Marginal note:First-time home buyer rebates — new agreement
(4) For the purposes of subsections (3) and (5) and paragraphs 254(2.1)(b), 254.1(2.1)(b) and 255(2.1)(b), if
(a) before March 20, 2025, a particular person that is a builder or a cooperative housing corporation and a particular individual enter into a particular agreement of sale in respect of a particular residential complex,
(b) after March 19, 2025,
(i) the particular person and the particular individual, either directly or indirectly, terminate the particular agreement of sale, and
(ii) the particular individual, another individual that is not dealing at arm’s length with the particular individual or a group of individuals that is not dealing at arm’s length with the particular individual enters into another agreement of sale in respect of the particular residential complex or in respect of another residential complex with
(A) the particular person,
(B) another person that is a builder or a cooperative housing corporation and that is not dealing at arm’s length with the particular person, or
(C) if the particular person is a builder, another person that is a builder of the particular residential complex, and
(c) the entering into of the other agreement of sale may not reasonably be considered for the particular individual, the other individual or the group, as the case may be, to have been undertaken or arranged primarily for bona fide purposes other than to obtain a rebate under any of subsections 254(2.1), 254.1(2.1) and 255(2.1),
the other agreement of sale is deemed to have been entered into before March 20, 2025.
Marginal note:First-time home buyer rebates — new agreement
(5) For the purposes of subsections (3) and (4) and paragraphs 254(2.1)(b), 254.1(2.1)(b) and 255(2.1)(b), if
(a) before March 20, 2025, a particular person that is a builder or a cooperative housing corporation and a particular group of individuals enter into a particular agreement of sale in respect of a particular residential complex,
(b) after March 19, 2025,
(i) the particular person and the particular group, either directly or indirectly, terminate the particular agreement of sale, and
(ii) the particular group, an individual that is not dealing at arm’s length with the particular group or another group of individuals that is not dealing at arm’s length with the particular group enters into another agreement of sale in respect of the particular residential complex or in respect of another residential complex with
(A) the particular person,
(B) another person that is a builder or a cooperative housing corporation and that is not dealing at arm’s length with the particular person, or
(C) if the particular person is a builder, another person that is a builder of the particular residential complex, and
(c) the entering into of the other agreement of sale may not reasonably be considered for the particular group, the individual or the other group, as the case may be, to have been undertaken or arranged primarily for bona fide purposes other than to obtain a rebate under any of subsections 254(2.1), 254.1(2.1) and 255(2.1),
the other agreement of sale is deemed to have been entered into before March 20, 2025.
(2) Subsection (1) is deemed to have come into force on March 20, 2025.
SOR/2010-99Nova Scotia HST Regulations, 2010
11 (1) Sections 15 to 18 of the Nova Scotia HST Regulations, 2010 are repealed.
(2) Subsection (1) is deemed to have come into force on March 20, 2025.
SOR/2010-151New Harmonized Value-added Tax System Regulations, No. 2
12 (1) The New Harmonized Value-added Tax System Regulations, No. 2 are amended by adding the following after section 42:
Marginal note:Amounts and rates for participating provinces
42.1 In applying subsection 254.1(2.1) of the Act in respect of
(a) a residential complex situated in Ontario,
(i) the references in that subsection to “$1,575,000” are to be read as references to “$1,695,000”,
(ii) the references in that subsection to “$1,050,000” are to be read as references to “$1,130,000”,
(iii) the reference in that subsection to “$525,000” is to be read as a reference to “$565,000”, and
(iv) the references in the description of A in the formula in paragraph (f) and in the description of C in the formula in paragraph (g) of that subsection to “4.77%” are to be read as references to “4.43%”;
(b) a residential complex situated in Nova Scotia,
(i) the references in that subsection to “$1,575,000” are to be read as references to “$1,710,000”,
(ii) the references in that subsection to “$1,050,000” are to be read as references to “$1,140,000”,
(iii) the reference in that subsection to “$525,000” is to be read as a reference to “$570,000”, and
(iv) the references in the description of A in the formula in paragraph (f) and in the description of C in the formula in paragraph (g) of that subsection to “4.77%” are to be read as references to “4.39%”;
(c) a residential complex situated in New Brunswick,
(i) the references in that subsection to “$1,575,000” are to be read as references to “$1,725,000”,
(ii) the references in that subsection to “$1,050,000” are to be read as references to “$1,150,000”,
(iii) the reference in that subsection to “$525,000” is to be read as a reference to “$575,000”, and
(iv) the references in the description of A in the formula in paragraph (f) and in the description of C in the formula in paragraph (g) of that subsection to “4.77%” are to be read as references to “4.35%”;
(d) a residential complex situated in Prince Edward Island,
(i) the references in that subsection to “$1,575,000” are to be read as references to “$1,725,000”,
(ii) the references in that subsection to “$1,050,000” are to be read as references to “$1,150,000”,
(iii) the reference in that subsection to “$525,000” is to be read as a reference to “$575,000”, and
(iv) the references in the description of A in the formula in paragraph (f) and in the description of C in the formula in paragraph (g) of that subsection to “4.77%” are to be read as references to “4.35%”; and
(e) a residential complex situated in Newfoundland and Labrador,
(i) the references in that subsection to “$1,575,000” are to be read as references to “$1,725,000”,
(ii) the references in that subsection to “$1,050,000” are to be read as references to “$1,150,000”,
(iii) the reference in that subsection to “$525,000” is to be read as a reference to “$575,000”, and
(iv) the references in the description of A in the formula in paragraph (f) and in the description of C in the formula in paragraph (g) of that subsection to “4.77%” are to be read as references to “4.35%”.
(2) Subsection (1) is deemed to have come into force on March 20, 2025.
13 (1) The Regulations are amended by adding the following after section 44:
Marginal note:Amounts and rates for participating provinces
44.1 In applying subsection 255(2.1) of the Act in respect of
(a) a residential complex situated in Ontario,
(i) the references in that subsection to “$1,575,000” are to be read as references to “$1,695,000”,
(ii) the references in that subsection to “$1,050,000” are to be read as references to “$1,130,000”,
(iii) the reference in that subsection to “$525,000” is to be read as a reference to “$565,000”, and
(iv) the references in the description of A in the formula in paragraph (f) and in the description of C in the formula in paragraph (g) of that subsection to “4.77%” are to be read as references to “4.43%”;
(b) a residential complex situated in Nova Scotia,
(i) the references in that subsection to “$1,575,000” are to be read as references to “$1,710,000”,
(ii) the references in that subsection to “$1,050,000” are to be read as references to “$1,140,000”,
(iii) the reference in that subsection to “$525,000” is to be read as a reference to “$570,000”, and
(iv) the references in the description of A in the formula in paragraph (f) and in the description of C in the formula in paragraph (g) of that subsection to “4.77%” are to be read as references to “4.39%”;
(c) a residential complex situated in New Brunswick,
(i) the references in that subsection to “$1,575,000” are to be read as references to “$1,725,000”,
(ii) the references in that subsection to “$1,050,000” are to be read as references to “$1,150,000”,
(iii) the reference in that subsection to “$525,000” is to be read as a reference to “$575,000”, and
(iv) the references in the description of A in the formula in paragraph (f) and in the description of C in the formula in paragraph (g) of that subsection to “4.77%” are to be read as references to “4.35%”;
(d) a residential complex situated in Prince Edward Island,
(i) the references in that subsection to “$1,575,000” are to be read as references to “$1,725,000”,
(ii) the references in that subsection to “$1,050,000” are to be read as references to “$1,150,000”,
(iii) the reference in that subsection to “$525,000” is to be read as a reference to “$575,000”, and
(iv) the references in the description of A in the formula in paragraph (f) and in the description of C in the formula in paragraph (g) of that subsection to “4.77%” are to be read as references to “4.35%”; and
(e) a residential complex situated in Newfoundland and Labrador,
(i) the references in that subsection to “$1,575,000” are to be read as references to “$1,725,000”,
(ii) the references in that subsection to “$1,050,000” are to be read as references to “$1,150,000”,
(iii) the reference in that subsection to “$525,000” is to be read as a reference to “$575,000”, and
(iv) the references in the description of A in the formula in paragraph (f) and in the description of C in the formula in paragraph (g) of that subsection to “4.77%” are to be read as references to “4.35%”.
(2) Subsection (1) is deemed to have come into force on March 20, 2025.
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