New Brunswick HST Rental Rebate

Summary#

These final regulations (SOR/2025-76) change the Real Property (GST/HST) Regulations to let New Brunswick offer a temporary rebate of its provincial portion of the HST on new purpose‑built rental housing. The measure is federally administered and is treated as having come into force on November 15, 2024.

What it does#

• Implements a rebate of 100% of the provincial component (the 10% New Brunswick share) of the HST for qualifying purpose‑built rental housing located in New Brunswick.
• Applies only to projects where construction begins on or after November 15, 2024 and before 2028, and is substantially completed before 2030.
• Sets the way the rebate is calculated: it is worked out per qualifying rental unit based on the total tax paid and each unit’s share of total floor space.
• Requires an application for the rebate to be filed within two years after the end of the month in which the tax first becomes payable (or is deemed paid).
• Assigns the Canada Revenue Agency to administer and enforce the rebate under federal rules while the provincial cost is borne by New Brunswick.

Who's affected#

• Builders and developers of new purpose‑built rental housing in New Brunswick who start construction in the eligible period.
• Property owners or purchasers claiming the rebate for qualifying rental units.
• Accounting, legal, and tax advisers who help developers apply for the rebate.
• The Canada Revenue Agency, which will administer the claims and update forms and guidance.
• The provincial government of New Brunswick, which bears the cost of rebating its HST component.

Why it matters#

• The rebate lowers the tax cost of building new rental apartment buildings in New Brunswick, which could make more rental projects financially viable.
• That may help increase the supply of long‑term rental housing in the province.
• The measure aligns the provincial rebate rules with the existing federal rebate for purpose‑built rental housing, so eligible projects can receive both federal and provincial relief.
• The cost of the provincial rebate is for New Brunswick, not the federal government.