The purchaser of a new home where HST applies to the sale would be eligible for an RST transitional new housing rebate if at least 10% of the construction was complete on July 1, 2010.
The rebate is designed to offset the PST imbedded in the cost of the home. The individual can obtain the rebate from either the builder or the CRA using a prescribed rebate form which will be available by July 1, 2010. The builder must certify the degree of completion of the construction at July 1st.
The rebate is calculated based on the estimated amount of RST embedded in the home by using one of two methods:
- 2% of the estimated selling price of the home
- $45 per square metre of floor space in the home
The percentage of the rebate available depends on the percentage of completion of construction as follows:
- 100% of the rebate is available for a home greater than 90% complete;
- 90% for 75%-90% completion;
- 75% for 50%-75% complete;
- 50% for 25%-50% complete;
- 25% for 10% to 25% completed and
- 0% for less than 10% completed
