Island Home Access
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Tax Strategy

Stacking RAHA with HATC.

BC RAHA is a grant. HATC is a tax credit. They stack. On a $30,000 accessibility project, you can receive $20,000 RAHA + $3,000 HATC + $1,000 BC credit = $24,000 total benefit. Here's how.

RAHA + HATC stacking combines BC's Rebate for Accessible Home Adaptations (up to $20,000 grant) with the federal Home Accessibility Tax Credit (15% of $20,000 = $3,000 max) and BC Senior's Home Renovation Credit (10% of $10,000 = $1,000 max). Key insight: tax credits are calculated on pre-rebate expenses. A $30,000 project can yield $24,000 in combined benefits—80% recovery.

Sources: BC Housing 2026, CRA Line 31285, BC Gov Tax Credits.

Important Disclaimer

This information is for general educational purposes only—not professional, legal, or tax advice. Tax rules and credit amounts may change. Verify current requirements with CRA and BC Housing before making tax decisions. See our Terms of Service.

01 — The Strategy

How stacking works.

Most people know about RAHA. Fewer know you can claim tax credits on top of the grant. The key: RAHA is a grant (money you receive), while HATC and BC credits are tax credits (reduce what you owe). Different buckets, additive benefits.

$20,000

BC RAHA Grant

Direct rebate, no repayment

$3,000

Federal HATC

15% of $20K eligible expenses

$1,000

BC Senior's Credit

10% of $10K eligible expenses

$24,000

Maximum combined benefit on a $30,000 project

Net cost to homeowner: $6,000 (20% of project cost)

02 — The Programs

Understanding each benefit.

BC RAHA (Rebate for Accessible Home Adaptations)

A provincial grant (not a loan) providing up to $20,000 lifetime for home accessibility modifications. You receive money directly from BC Housing—no repayment required.

  • Amount: Up to $20,000 lifetime
  • Type: Direct rebate (grant)
  • Timing: Paid after project completion
  • Tax impact: Not taxable income

Eligibility (2026)

  • • Income under $134,140
  • • Liquid assets under $100,000
  • • Home value under regional limits
  • • Permanent disability/loss of ability (12+ months)

Federal Home Accessibility Tax Credit (HATC)

A federal non-refundable tax credit worth 15% of eligible accessibility expenses up to $20,000. Maximum credit: $3,000. Reduces your federal tax owing.

  • Amount: 15% of expenses up to $20,000
  • Maximum: $3,000 credit
  • Type: Non-refundable (reduces tax, no cash back)
  • Claim: Line 31285 on tax return

Key Rule

HATC is calculated on pre-rebate expenses. RAHA grants do not reduce your HATC claim. On a $30,000 project where you received $20,000 RAHA, you still claim HATC on $20,000 of eligible expenses.

BC Senior's Home Renovation Tax Credit

A provincial refundable tax credit worth 10% of eligible accessibility expenses up to $10,000. Maximum credit: $1,000. Refundable means you get it even if you owe no tax.

  • Amount: 10% of expenses up to $10,000
  • Maximum: $1,000 credit
  • Type: Refundable (get cash back even with no tax owing)
  • Eligibility: Seniors 65+ or persons with disabilities

Different from HATC

Unlike HATC, the BC credit is refundable. Even if you owe zero tax, you receive the $1,000. This matters for low-income seniors.

03 — The Math

A $30,000 project breakdown.

Here's how a typical $30,000 accessibility renovation works with full stacking:

StepAmountRunning Total
Total project cost$30,000
BC RAHA grant received($20,000)$10,000 out of pocket
Federal HATC (15% of $20,000)*($3,000)Tax time credit
BC Senior's Credit (10% of $10,000)($1,000)Tax time credit
Total benefit$24,000
Net cost to homeowner$6,00020% of project

*HATC claimed on $20,000 of eligible expenses (the HATC cap). RAHA grant does not reduce the HATC calculation base.

04 — 2026 Rules

What changed in 2026.

HATC + METC Rule Change

Starting 2026, you cannot claim both HATC and METC (Medical Expense Tax Credit) on the same dollar spent. Choose one or the other for each expense. This does not affect RAHA—RAHA is a grant, not a tax credit.

What still works

  • • RAHA + HATC stacking (unchanged)
  • • RAHA + BC Senior's Credit stacking (unchanged)
  • • HATC calculated on pre-rebate expenses (unchanged)
  • • All three programs combined (unchanged)

What changed

  • • HATC and METC cannot both apply to the same expense
  • • Choose HATC or METC for each qualifying expense
  • • HATC is usually better (15% vs. ~10% for most METC claims)

05 — Process

How to claim all three.

01

Apply for RAHA first

Submit your RAHA application to BC Housing before starting any work. Get approval, complete the project within 180 days, then submit documentation to receive your rebate. This is the largest benefit ($20,000) and has the strictest timing rules.

02

Keep all receipts

You'll need itemized invoices showing contractor details, work performed, and costs breakdown for both RAHA and tax credits. Keep everything: invoices, receipts, before/after photos, and your OT assessment.

03

Claim HATC on your federal return

When filing taxes, claim HATC on Line 31285 (Home Accessibility Expenses). Enter your total eligible expenses (up to $20,000). The credit is 15% = up to $3,000 reduction in federal tax owing.

04

Claim BC Senior's Credit on your provincial return

On your BC provincial tax return, claim the BC Senior's Home Renovation Tax Credit for up to $10,000 of eligible expenses. The credit is 10% = up to $1,000. This is refundable—you'll receive it even if you owe no tax.

Track Your Documents

Documentation checklist

0 of 5 completed

06 — FAQ

Common questions.

Does RAHA reduce my HATC claim?

No. HATC is calculated on your pre-rebate expenses. If you spent $30,000 and received $20,000 RAHA, you still claim HATC on $20,000 of eligible expenses (the HATC cap). The RAHA grant is not subtracted.

Can I claim HATC if I don't qualify for RAHA?

Yes. HATC has different eligibility requirements (seniors 65+ or persons with disabilities, no income limit). You can claim HATC even if you don't qualify for or didn't apply for RAHA.

Is the RAHA grant taxable income?

No. RAHA is a non-taxable grant. You don't report it as income, and it doesn't affect your eligibility for other income-tested benefits.

What if I owe no federal tax?

HATC is non-refundable—it only reduces tax owing to zero, no further. But the BC Senior's Credit is refundable. You'll still receive up to $1,000 even with no tax owing.

Can I claim for modifications done in previous years?

For tax credits, yes—within the normal CRA amendment period (typically 10 years). For RAHA, no—you must apply before work begins. If you've already completed modifications without RAHA approval, you can't claim RAHA retroactively, but you may still claim HATC.

Sources

Last verified: January 2026. Tax rules change—consult a tax professional for your specific situation.

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