Saskatchewan has launched a tax rebate for residential landlords that could cost $34 million and spur construction of 10,000 new rental apartments over the next five years.
"We heard consistently from the housing sector that the current corporate income tax structure is a barrier to the development of rental housing," said Social Services Minister and Minister responsible for Saskatchewan Housing Corporation June Draude.
The new tax rebate effectively reduces the provincial corporate income tax rate on a corporation's eligible rental income from the current 12 per cent rate to the 2 per cent small-business tax rate. The tax rebate is earned each year for a period of up to 10 consecutive years after residential units are rented.
Projects can be located in either urban or rural communities across the province. Eligible rental housing must be newly constructed multi-unit rental housing but can include conversion of non-residential property like warehouses to rental housing.
Qualifying multi-unit rental housing must consist of at least eight fully self-contained rental units, meaning that bathroom and kitchen facilities are available in the suite.
from Western Investor June 2012
