The government’s plan to reduce corporate income tax on profits generated through the development of new rental properties are being met with praise from the real estate industry. The 2012-13 provincial budget will provide a ten percent tax break to builders who construct multi-family projects of eight or more units over the next ten years.
From yesterday’s Regina Leader Post:
“We think the government is ‘bang on’ here,” said Alan Thomarat, CEO of the Saskatchewan branch of the Canadian Home Builders’ Association. “Any of the money that they’ll have forsaken with respect to revenue collection from taxation, they’re going to get back at least threefold as far as we’re concerned — in job creation, in the consumption taxes and the project development and in our ability to continue to make sure that there’s housing for the growing labour force we need here.”
“Rental housing now starts to make sense — where it hasn’t in the past,” said Al Didur, chair of the government affairs committee of the Association of Saskatchewan Realtors, who called the program “exciting” and said developers can “stack” it onto other incentive plans.
The budget makes additional allowances for affordable housing including;
• a $2 million funding increase for the Rental Construction Incentive and Affordable Home Ownership program;
• $10.2 million in new expenditures by Saskatchewan Housing Corp., including $1 million for Habitat for Humanity build homes for 20 low-income families;
• $9.2 million for the Rental Development Program to develop an additional 200 rental units in communities with long-term housing needs;
• the previously announced Saskatchewan First-Time Homebuyers Tax Credit, which provides a tax credit of $1,100 for an eligible home purchase.
Read: Government expands plan for affordable housing – Government of Saskatchewan
Read: Tax break for rental housing construction unveiled – CTV
Read: Budget 2012: Business gives enthusiastic reception to Sask. apartment plan
Read: Apartment plan ‘bang on’ – Leader Post
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