BC government to provide new $400 Renters' Rebate as a tax credit

BUDGET 2023: BC government to provide new Renters' Rebate of up to $400 as a tax credit

West End residential buildings in downtown Vancouver. (Shutterstock)

The vast majority of renters across British Columbia are expected to benefit from the provincial government’s newly created Renters’ Tax Credit.

This was announced today by Katrine Conroy, the BC minister of finance, in her 2023 provincial budget speech.

With some caveats for eligibility, this fulfills the BC NDP’s campaign election promises in 2017 and again in 2020 to provide a form of renters’ rebate of $400 for every rental housing tenant. The governing party has faced some criticism over the years from the public, media, and BC Liberals for delaying the implementation of the rebate.

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Instead of a flat-rate $400 rebate, the Renters’ Tax Credit will be given out based on an income scale to save low- and moderate-income renters up to $400 annually. Households that make less than $60,000 annually will be able to claim 100% of the $400 amount, while households that earn between $60,000 and $80,000 annually will receive a partial amount, with $80,000 being zero. This threshold will change annually based on inflation.

This tax credit will start in 2024, and people who receive income and disability assistance, support from the Rental Assistance Program, or Shelter Aid for Elderly Renters will also be eligible.

But the exclusions include amounts paid for a campsite, moorage or manufactured home site under a rent-to-own plan or by employers for accommodation that is not required to be included as income. Additionally, the rent paid must not be to family, the minimum age of eligibility is 19 years old, and households must rent in their unit for at least six months of a calendar year.

The provincial government anticipates 80% of renter households across BC will receive at least a portion of the Renters’ Tax Credit.

The new Renters’ Tax Credit will cost an estimated $939 million over its first three fiscal years, including $307 million in 2023/2024, $313 million in 2024/2025, and $319 million in 2025/2026.

Additionally, the provincial government is providing renters with access to the BC Rent Bank, which is funded with over $7 million to assist renters with financial support to prevent eviction and homelessness and up to $15.6 million to the Residential Tenancy Branch to improve services and support the timely resolution of landlord and tenant disputes.

The Renters’ Tax Credit is in addition to the new BC Affordability Credit, which will provide 85% of BC residents up to $164 per adult and up to $41 per child for the April 2023 instalment — in addition to the earlier instalments.

The provincial government’s total new housing-related expenditures will reach $4.2 billion over the next three fiscal years.

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