Ontario is scrapping its portion of the harmonized gross sales tax on eligible purpose-built rental housing in an effort to spur development.
The province has been saying it could take away its eight per cent portion of the tax if the federal authorities dropped the 5 per cent items and companies tax on rental housing builds.
The federal authorities did that final month.
Ontario Finance Minister Peter Bethlenfalvy says the adjustments will apply to new rental housing items equivalent to house buildings, pupil housing and senior residences constructed for long-term care rental lodging.
The rebates apply to tasks that started development this previous September till Dec. 31, 2030.
To qualify, new residential items have to be in buildings with a minimal of 4 personal house items or 10 personal rooms, and be in a constructing the place 90 per cent of items are long-term leases.