Secondary Suite Incentive and PST Rebate for New Home Construction

Secondary Suite Incentive and PST Rebate for New Home Construction

Secondary Suite Incentive and PST Rebate for New Home Construction

  • Posted by Member Services
  • On January 17, 2024

On January 9, 2024, the Government of Saskatchewan announced that applications are now being accepted for the Saskatchewan Secondary Suite Incentive (SSI) Grant Program. The SSI is administered by the Ministry of Finance. Participants of this program may also be eligible for the Provincial Sales Tax (PST) Rebate for New Home Construction.

Secondary Suite Incentive

Saskatchewan is experience its fastest growth in a century, creating demand for diversified housing options. Home ownership has become challenging with increased interest rates and higher demand. The Government of Saskatchewan has launched a new grant program that targets homeowners with the capacity to invest in their property.

The SSI grant provides 35% of eligible costs to construct a new secondary suite at an owners primary residence. The grant is capped at $35,000 for a qualifying suite.

A qualifying secondary suite is a new separate dwelling unit located on the premises of the owner’s primary residence. For purposes of the SSI, a qualifying suite includes a secondary suite within the residence, or a laneway home, garden suite, or garage suite. Only one secondary suite unit may be funded for the owner’s primary residence.

The suite must meet the requirements of a secondary suite according to the National Building Code of Canada and any other applicable national, provincial and municipal bylaws, codes and standards. The homeowner or builder must have received all required permitting and legal approvals necessary for the unit to be used as a rental property, however the program eligibility criteria will not require verification that the suite has been rented before the grant is awarded.

Eligible costs are those incurred from April 1, 2023, to March 31, 2026, that are directly related to the construction, or the renovation of an existing space, which results in a new qualifying secondary suite, and includes the cost of standard appliances (i.e. washer, dryer, refrigerator, stove and dishwasher) up to a maximum of $5,000. Examples of eligible costs include engineering and architectural services, materials and contract labour related to construction, interior finishing, electrical, plumbing and mechanical work, and standard appliances.

The SSI will be administered by the Ministry of Finance, and eligible applicants may access funding through the SSI program alongside existing Saskatchewan incentives, including the expanded Provincial Sales Tax (PST) Rebate for New Home Construction, provided the applicant meets the prescribed eligibility criteria for each program.

The cost of renovating an existing secondary suite, or the primary residence are not eligible.

The SSI program is open to homeowners who construct a new qualifying secondary suite on the premises of their primary residence, with eligible costs incurred from April 1, 2023, to March 31, 2026, to accommodate projects that have already been initiated. Construction of the secondary suite must be completed on or before March 31, 2027.

You have the option to use a certified professional home builders and renovators from the Saskatoon and Region Home Builders Association (SRHBA) or the Regina and Region Home Builders Association if you aren’t doing the work yourself.

PST Rebate for New Home Construction

The Provincial Sales Tax Rebate for new home construction provides a rebate of up to 42% of the PST paid on the purchase of a new, previously unoccupied home (newly constructed home). The program is eligible for newly constructed homes with a total price of less than $550,000 before taxes and excluding the price of land and the price of any furniture, furnishings, and appliances. The amount of the rebate is reduced for homes with a total price between $450,000 and $550,000. Further eligibility information can be found here.

This rebate was intended for the purchaser of the newly-built home, not the builder. The builder cannot accept assignment of the rebate unless they are either paying or crediting the amount to the purchaser. Rebate applications must be received by the Ministry of Finance before March 31, 2027.