The Corporate Income Tax Rebate on New Rental Housing Offers a ten percentage point reduction in the general Corporate Income Tax (CIT) rate levied on income earned from the rental of newly developed qualifying multi-unit rental housing.
As a means to increase the supply of rental housing to the general public, the Corporate Income Tax Rebate on New Rental Housing provides a 10 year non-refundable Saskatchewan Corporate Income Tax (CIT) rebate to eligible corporations whose sole purpose is the rental of newly developed eligible multiunit residential rental housing in Saskatchewan. The annual rebate during the 10 year eligibility period is calculated as 10 per cent of the amount of eligible income earned directly from the rental of eligible rental units.
You are eligible for the Corporate Income Tax Rebate on New Rental Housing if you are a private or public corporation with a permanent establishment in Saskatchewan and are solely engaged in the rental of newly constructed / developed eligible multi-unit residential rental housing in Saskatchewan.
Other Important Details
Eligible rental housing includes newly constructed multi-unit rental housingprojects which can include:
- new construction including modular construction (e.g. apartment, row); and,
- conversion of non-residential property to rental units (e.g. warehouse space conversion).
Eligible multi-unit rental housing must consist of at least eight (8) fully self-contained rental units (i.e. full bathroom and kitchen facilities in each suite).
Multi-unit assisted living housing projects for seniors are also eligible provided that they meet the general conditions listed above and are not included in the housing that is specifically excluded. These units do not have to be fully self-contained due to the nature of the housing project.
Housing specifically excluded from the tax rebate includes living accommodation:
- in a hotel, motel, motor hotel, resort, lodge or tourist camp, cottage, cabin, trailer, tourist home, bed and breakfast establishment or a farm vacation home;
- in a rooming house;
- provided for crisis or emergency shelters;
- in a hospital, health centre, addiction treatment centre, special-care home, residential treatment centre or other facility that is designated pursuant to The Regional Health Services Act;
- in a personal care home that is licensed pursuant to The Personal Care Homes Act’;
- located on property that is being farmed if the living accommodation is being rented by a person engaged in farming that property; and,
- for employee housing projects where eligibility for tenancy is limited by where one works / job site, and; units are not available for rent by the general public.
Units registered under a building permit dated on or after March 21, 2012 and before January 1, 2014 are eligible to apply, assuming all other terms and conditions are met.
Units must be available for rent by December 31, 2016.
Acceptance is on a first come, first served basis. A maximum of 10,000 units will be eligible.
The rebate can be determined based on a detailed calculation of “eligible rental income” or based on a simplified proxy calculation using “gross rental revenue.” The corporation may choose its preferred option, which will be used for the full 10 year rebate eligibility period.
The corporation’s eligibility for the tax rebate will begin once the corporation is in a taxable position and will continue for a period of up to 10 consecutive years.
Each year, eligible projects must submit the appropriate forms and documentation to receive that year’s rebate.