toronto home rebated and tax incentives 2025

Energy-Efficient Home Improvement Incentives and Tax Credits in Toronto & Ontario

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With Toronto’s harsh winters and hot, humid summers putting constant demands on home energy systems, homeowners across the Greater Toronto Area are increasingly looking for ways to improve their homes’ energy efficiency while managing rising utility costs. The good news is that multiple levels of government—federal, provincial, and municipal—offer a variety of financial incentives, rebates, and tax credits to help offset the costs of energy-efficient home improvements and renovations.

Whether you’re planning a custom home addition, considering a major renovation, or looking to upgrade your home’s energy systems, understanding these available programs can save you thousands of dollars. From heat pump installations and insulation upgrades to accessibility modifications and basement flood protection, there are opportunities to reduce both your environmental impact and your out-of-pocket expenses.

Understanding the Current Energy Efficiency Landscape in Ontario

The landscape of energy efficiency incentives in Ontario has evolved significantly in 2025. The province has launched ambitious new programs while federal initiatives continue to support Canadian homeowners. Ontario’s 2025 rebate program offers rebates covering up to 30% of costs for energy-efficient home upgrades, including windows, doors, insulation, air sealing, smart thermostats, heat pumps, rooftop solar panels, and battery storage systems.

For homeowners in the GTA, this represents the largest investment in energy efficiency programs in Canadian history, with the Ontario government investing $10.9 billion over 12 years in energy efficiency. These programs are designed to help homeowners reduce energy consumption, lower utility bills, and make their homes more comfortable while contributing to Ontario’s climate goals.

The timing is particularly relevant for Toronto-area homeowners, as the region experiences temperature extremes that put significant stress on heating and cooling systems. Toronto’s continental climate means homes can face temperatures ranging from -20°C in winter to 35°C in summer, making energy efficiency improvements not just environmentally responsible but financially essential.

Major Provincial Programs Available in 2025

Home Renovation Savings Program (Ontario, 2025)

Launched on January 7, 2025, the Home Renovation Savings Program offers significant rebates for energy-efficient home improvements. This comprehensive program replaces several previous initiatives and provides homeowners with flexible options for single or bundled upgrades.

Key Features:

  • Insulation rebates up to $8,900 for enhancing your home’s insulation
  • $100 rebate on each qualified window and door replacement
  • Up to $250 in rebates for air sealing to prevent air leaks
  • $500 rebate for qualified heat pump water heaters
  • Up to $7,500 for cold climate air source heat pumps suitable for Ontario’s climate
  • Up to $12,000 for ground-source heat pumps
  • Up to $10,000 in rebates for installing rooftop solar panels and battery storage systems

The program offers two pathways: homeowners can choose to bundle multiple upgrades starting with a home energy assessment, or select single upgrades without the assessment requirement. Rebates are typically processed within 30 to 60 days of an approved application.

Application Link: Visit Home Renovation Savings Program

Enbridge Gas & Save on Energy Programs

Enbridge Gas and Save on Energy, with support from the Ontario Government, have partnered to launch the new Home Renovation Savings program to help Ontarians improve home energy efficiency and comfort. This collaboration ensures that whether you heat your home with natural gas or electricity, you have access to significant rebates.

Current offerings include specialized rebates for smart thermostats, with $100 rebate on popular smart thermostat models available through October 31. The program emphasizes that homeowners now have more choice with flexible options for single and bundled upgrades.

Application Link: Save on Energy Program

Federal Government Programs

Canada Greener Homes Loan

While the Canada Greener Homes Grant is no longer accepting new applications, the Canada Greener Homes Loan program has been extended with an additional $600 million in funding. This program continues to provide crucial support for Canadian homeowners making energy-efficient upgrades.

Program Details:

  • Interest-free loans up to $40,000 with a repayment term of 10 years
  • Maximum of one loan per eligible property and homeowner
  • A portion of the loan can be delivered up front to assist in paying deposits required by contractors
  • Balance delivered after retrofits are completed and verified through post-retrofit evaluation

The loan requires a pre-retrofit EnerGuide evaluation and only covers retrofits recommended by an energy advisor that haven’t yet been started. This makes it an excellent complement to provincial rebate programs.

Application Link: Canada Greener Homes Loan Portal

GST/HST Substantial Renovation Rebate

For homeowners undertaking major renovations or home additions, the GST/HST New Housing Rebate can provide significant financial relief. In general, HST at 13% (5% federal HST part and 8% PST provincial part) applies to purchases of empty land and services to construct or substantially renovate a property.

Federal Rebate:

  • If your home costs $350,000 or less, you can receive a rebate of 36% of the GST paid, up to $6,300
  • If your home falls between $350,000 and $450,000, the rebate starts to taper off

Ontario Provincial Rebate:

  • In Ontario, you can get 75% of the provincial portion of the HST back, up to a maximum of $24,000
  • Unlike the Federal rebate, you can still apply for the Provincial rebate on homes valued above $450,000

To qualify for substantial renovation, extensive modifications are generally defined as 90% of the building interior that existed before the renovation began must be renovated to some minimum degree. This makes it particularly relevant for major home additions and extensive remodeling projects.

Application Link: GST/HST New Housing Rebate Information

Specialized Tax Credits for Specific Needs

Multigenerational Home Renovation Tax Credit (Canada-wide)

The Multigenerational home renovation tax credit (MHRTC) is a refundable tax credit for certain renovation expenses to create a self-contained secondary unit. This program addresses the growing trend of multigenerational living in Canadian households.

Program Benefits:

  • Up to $50,000 in qualifying expenditures for each qualifying renovation that is completed
  • Tax credit is 15% of costs, up to a maximum of $7,500
  • Secondary unit must be self-contained and have its own entrance, kitchen, bathroom and sleeping area

The credit applies to renovations for family members who are either 65 years of age or older at the end of the renovation period tax year, or 18 to 64 years of age and eligible for the disability tax credit.

Application Information: Multigenerational Home Renovation Tax Credit

Home Accessibility Tax Credit (Canada-wide)

The Home accessibility tax credit (HATC) reduces your federal tax and is designed to help seniors and individuals with disabilities make their homes more accessible and safe.

Program Details:

  • Up to $10,000 in expenses can be claimed under the Home Accessibility Tax Credit
  • You can receive 15% of your expenditure back in credit, up to a maximum of $1,500
  • Available to anyone 65 years or older, or someone who has a disability that qualifies them for the Disability Tax Credit

Eligible renovations include walk-in bathtubs, wheel-in showers, wheelchair ramps, grab bar installation, and other modifications that improve accessibility or reduce the risk of harm.

Application Information: Home Accessibility Tax Credit

City of Toronto Specific Programs

Home Energy Loan Program (HELP)

Through the Home Energy Loan Program (HELP), Toronto homeowners can borrow up to $125,000 to cover the cost of home energy improvements. This unique program allows homeowners to finance energy efficiency upgrades through their property tax bill.

Key Features:

  • The loan’s value cannot exceed 10% of the current value assessment (CVA) for your property or $125,000, whichever is less
  • Interest rates are fixed and will not fluctuate over the term
  • An administrative charge of 2% will be added, reflecting the City’s cost of administering the program
  • Homeowners repay the loan through their property tax bill and can pay it off at any time

The loan can be combined with other energy efficiency rebates and incentives from various levels of government and utility companies, maximizing your savings potential.

Application Link: Toronto Home Energy Loan Program

Eco-Roof Incentive Program

The City of Toronto established the Eco-Roof Incentive Program to help fund the expansion of green roof and cool roof installations across the city. These eco-roofs help make Toronto more resilient and better adapted to climate change.

Program Incentives:

  • Up to $100,000 for green roofs at $100 per square metre
  • Up to $50,000 for cool roofs at $2-5 per square metre
  • Applications are accepted and reviewed on an ongoing basis

The program supports both residential and commercial projects, making it relevant for homeowners considering environmentally conscious roofing solutions as part of their home additions or renovations.

Application Link: Eco-Roof Incentive Program

Basement Flooding Protection Subsidy Program

Toronto’s climate includes intense rainfall events that can overwhelm sewer systems. Owners of a single-family, duplex, triplex or fourplex residential home can apply online for a subsidy of up to $3,400 per property to install flood protection devices.

Available Subsidies:

  • Up to 80% of invoiced cost, up to a maximum of $1,250, for installing a backwater valve
  • Up to 80% of invoiced cost, up to a maximum of $1,750, for installing a sump pump
  • Maximum of $400 for pipe severance and capping of the home’s storm sewer or external weeping tile connection

This program is particularly important for Toronto homeowners, as basement flooding can cause significant damage and create health hazards.

Application Link: Basement Flooding Protection Subsidy

Quick Reference Guide: Program Comparison Table

Program Maximum Benefit Eligible Projects Application Deadline
Home Renovation Savings Program Up to $12,000 for heat pumps, $8,900 for insulation Windows, doors, insulation, heat pumps, solar panels Ongoing
Canada Greener Homes Loan $40,000 interest-free loan Energy advisor recommended retrofits Ongoing
GST/HST Substantial Renovation Up to $30,300 combined federal/provincial Major renovations (90%+ of interior) Within 2 years of completion
Multigenerational Home Tax Credit $7,500 tax credit Secondary unit creation Same tax year as completion
Home Accessibility Tax Credit $1,500 tax credit Accessibility improvements Annual on tax return
Toronto HELP $125,000 loan Energy efficiency upgrades Ongoing
Eco-Roof Incentive $100,000 for green roofs Green and cool roof installations Before work begins
Basement Flooding Protection $3,400 subsidy Flood protection devices Within 1 year of completion

Maximizing Your Benefits: Strategic Planning Tips

When planning your home addition or major renovation project, consider these strategies to maximize your available incentives:

Bundle Your Projects: Many programs offer higher rebates for multiple upgrades completed together. The Home Renovation Savings Program particularly rewards bundled approaches with enhanced rebate amounts.

Timing Considerations: Some programs require applications before work begins, while others have specific completion deadlines. The GST/HST substantial renovation rebate, for example, must be claimed within two years of project completion.

Professional Energy Assessments: Several programs require or benefit from professional energy assessments. These evaluations help identify the most cost-effective improvements and ensure you qualify for maximum rebates.

Combine Federal, Provincial, and Municipal Programs: There’s no restriction on combining incentives from different levels of government. A well-planned project might incorporate rebates from multiple sources to significantly reduce overall costs.

Consider Long-term Savings: While upfront costs are important, factor in long-term energy savings when evaluating projects. Energy-efficient improvements often pay for themselves through reduced utility bills over time.

Taking Action: Your Next Steps with Novacon Construction

The variety and value of available incentives make this an excellent time to move forward with your home addition, custom home, or major renovation project. As award-winning design-build contractors serving the Greater Toronto Area, Novacon Construction understands both the technical requirements of these programs and the practical challenges of implementing energy-efficient solutions in Toronto’s unique climate.

Our experience with energy-efficient home additions and custom homes means we can help you navigate these programs effectively, ensuring your project meets all requirements while maximizing available incentives. We work closely with certified energy advisors and understand the documentation requirements for various rebate programs, helping streamline the application process.

Whether you’re considering a custom home addition to accommodate a growing family, planning a substantial renovation to improve your home’s energy efficiency, or exploring options for multigenerational living, understanding these incentive programs is the first step toward making your project more affordable and environmentally responsible. Contact Novacon Construction today to learn more and to schedule a free consultation.

Note: Program details and availability are subject to change. Always verify current program status and requirements directly with program administrators before beginning any renovation project. This information is current as of July 2025.

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