New Home Construction Rebate

On December 14, 2023, the Saskatchewan government enacted amendments to The New Home Construction Rebate (Provincial Sales Tax) Remission Regulations through Order in Council 638/2023, under the authority of The Financial Administration Act, 1993. These amendments aim to expand the rebate program for new home construction, specifically targeting owner-built homes and enhancing eligibility criteria for purchasers. The regulation, titled “The New Home Construction Rebate (Provincial Sales Tax) Remission (Expansion) Amendment Regulations, 2023,” broadens the application of the provincial sales tax rebate for newly constructed homes.
The amendments include changes to Section 2, which outlines the initial eligibility criteria for the rebate program. Subsection 2(4) has been modified to include a new reference to Subsection (4.1), clarifying that for owner-built homes, a purchaser is considered to have taken possession if they complete the new housing start after April 1, 2023, and occupy the home before April 1, 2026. This addition is intended to encourage the construction and occupancy of new homes by extending the possession timeline.
Another notable change is the introduction of Section 3.1, which details the conditions under which purchasers can receive a tax remission. Buyers who sign a contract for a newly constructed home after March 31, 2023, and take possession before April 1, 2026, or those who sign a contract before this date for homes with new housing starts completed afterward, are eligible. The remission is tiered based on the total price of the home: for homes priced under $450,000, the remission is set at 42% of the provincial sales tax, while homes priced at or above $450,000 are calculated using a specific formula. This approach aims to support a diverse range of buyers, particularly first-time homeowners or those purchasing lower-cost homes.
The amendments also clarify the application process for obtaining the remission. A new subsection (3.2) mandates that any purchaser seeking a remission must apply to the minister using an approved form. Additionally, if a purchaser assigns their entitlement to the remission to their builder, the builder can apply on their behalf, as stated in Subsection (3.3). It is crucial that applications are submitted by specified deadlines—March 31, 2024, for Section 3 and March 31, 2027, for Section 3.1—otherwise, no remission will be granted.
Section 7 has been repealed and replaced with new provisions emphasizing the importance of timely applications. This section makes it clear that no remission will be paid if the purchaser or builder fails to apply within the outlined time frames. Additionally, the new Section 9.1 grants immunity to the Government of Saskatchewan and its officials from legal actions arising from actions taken in good faith under these regulations, ensuring that those administering the regulations can operate without fear of legal repercussions.
Saskatchewan (124/2023) December 22, 2023