The Prince Edward Island (P.E.I.) government has launched a program that offers a full rebate on the provincial portion of the harmonized sales tax (HST)—10 per cent—on qualified rental housing projects up to a maximum of $35,000 per unit.
The construction must have started on or after September 14, 2023, and must be completed by the end of 2028 to receive the full rebate. Projects that reach completion after 2028 will qualify for only a portion of the rebate until 2035. The tax rebate will be capped on the first $350,000 in value per unit.
The HST rebate on new rental builds can be used in conjunction with other P.E.I. programs to support housing developments. This program is aimed at reducing the cost of new construction to assist with adding new inventory to the housing market. Government intends to harmonize the program with the federal government to streamline the application and administration process for rebate programs for builders and landlords.
“The cost to build has become a significant roadblock to new housing developments that are affordable for residents,” said P.E.I. minister of housing, land, and communities, Rob Lantz. “This rebate will help get new housing developments off the ground. We need to work together, and work quickly, to address our vacancy rates and create more housing options.”
The program will be reviewed in three years to determine if it is addressing housing challenges in the province.
