I-3 - Taxation Act

Section 1029.8.153 Disposition versions

2015-10-21

1029.8.153. In this division,

“eco-friendly renovation agreement” entered into in respect of an individual’s eligible dwelling means an agreement under which a qualified contractor undertakes to carry out recognized eco-friendly renovation work in respect of the individual’s eligible dwelling that is entered into after 7 October 2013 and before 1 November 2014 between the qualified contractor and

(a)  the individual;

(b)  a person who, at the time the agreement is entered into, is either the individual’s spouse, or another individual who is the owner of the eligible dwelling or the other individual’s spouse; or

(c)  where the individual’s eligible dwelling is an apartment in an immovable under divided co-ownership, the syndicate of co-owners of the immovable;

“eco-friendly renovation expenditure” means an expenditure that is attributable to the carrying out of recognized eco-friendly renovation work provided for in an eco-friendly renovation agreement and that is

(a)  the cost of a service supplied to carry out the work by a qualified contractor who is a party to the eco-friendly renovation agreement, including the amount of any goods and services tax and Québec sales tax applicable;

(b)  the cost of a movable property that enters into the carrying out of the recognized eco-friendly renovation work provided for in the eco-friendly renovation agreement, including the amount of any goods and services tax and Québec sales tax applicable, provided that the movable property was acquired from the qualified contractor or a merchant holding a registration number assigned under the Act respecting the Québec sales tax (chapter T-0.1) and that it complies, where required, with the energy or environmental standards to which the definition of “recognized eco-friendly renovation work” refers in respect of the property; or

(c)  the cost of a permit necessary to carry out the recognized eco-friendly renovation work, including the cost of studies carried out to obtain such a permit;

“eligible dwelling” of an individual means a dwelling that is located in Québec, other than an excluded dwelling, of which construction is completed before 1 January 2013 and of which the individual is the owner when the eco-friendly renovation expenditures are incurred and that is

(a)  an individual house that is detached, semi-detached or a row house, a permanently installed manufactured home or mobile home, an apartment in an immovable under divided co-ownership or a unit in a multiple-unit residential complex that constitutes, at that time, the individual’s principal place of residence; or

(b)  is a cottage suitable for year-round occupancy that is normally occupied by the individual;

“excluded dwelling” means a dwelling that, before recognized eco-friendly renovation work was carried out, was the subject of

(a)  a notice of expropriation or a notice of intention to expropriate;

(b)  a reserve for public purposes; or

(c)  a prior notice of the exercise of a hypothecary right registered in the registry office or any other procedure calling the individual’s right of ownership of the dwelling into question;

“qualified contractor” in relation to an eco-friendly renovation agreement entered into in respect of an individual’s eligible dwelling means a person or a partnership meeting the following conditions:

(a)  at the time the agreement is entered into, the person or partnership has an establishment in Québec and, if the person is an individual, is neither the owner of the eligible dwelling nor the spouse of one of the owners of the eligible dwelling; and

(b)  at the time the recognized eco-friendly renovation work is being carried out and if required for the carrying out of such work, the person or partnership is the holder of the appropriate licence issued by the Régie du bâtiment du Québec, the Corporation des maîtres électriciens du Québec or the Corporation des maîtres mécaniciens en tuyauterie du Québec and, if applicable, has paid the licence security payable under the Building Act ( chapter B-1.1);

“qualified expenditure” of an individual, in relation to an eligible dwelling of the individual, for a particular taxation year that is either the taxation year 2013 or the taxation year 2014 means the aggregate of all amounts each of which is an eco-friendly renovation expenditure of the individual that is paid, in relation to the eligible dwelling, by the individual or the individual’s legal representative, by a person who is the individual’s spouse at the time the payment is made, or by any other individual who, at the time the expenditure is incurred, owns the eligible dwelling, in either of the following periods:

(a)  after 7 October 2013 and before 1 January 2014, where the particular year is the taxation year 2013; or

(b)  after 31 December 2013 and before 1 May 2015, where the particular year is the taxation year 2014;

“recognized eco-friendly renovation work” in respect of a dwelling means work carried out in compliance with the rules set out in any Act, regulation or by-law of Canada, Québec or a municipality of Québec and the policies that apply according to the type of intervention, including necessary site restoration work, that is

(a)  work relating to the insulation of the roof, exterior walls, foundations and exposed floors provided the work is made using insulation materials that do not contain urea formaldehyde or that have low levels of volatile organic compounds certified "GREENGUARD" or “EcoLogo environmental choice”, and that the insulation materials satisfy the following standards:

i.  in the case of the insulation of the attic, the insulating value achieved must be R-41 (RSI 7.22) or more,

ii.  in the case of the insulation of a flat roof or of a cathedral ceiling, the insulating value achieved must be R-28 (RSI 4.93) or more,

iii.  in the case of the insulation of the exterior walls, the increase in the insulating value must be R-3.8 (RSI 0.67) or more,

iv.  in the case of the insulation of the basement, including the header area,

(1)  for the walls, the insulating value achieved must be R-17 (RSI 3.0) or more, and

(2)  for the header area, the insulating value achieved must be R-20 (RSI 3.52) or more,

v.  in the case of the insulation of the crawl space, including the header area,

(1)  for the exterior walls, including the header area, the insulating value achieved must be R-17 (RSI 3.0) or more, and

(2)  for the floor area above the crawl space, the insulating value achieved must be R-24 (RSI 4.23) or more, and

vi.  in the case of the insulation of exposed floors, the insulating value achieved must be R-29.5 (RSI 5.20) or more;

(b)  work relating to the water-proof sealing of the foundations or the air sealing of the envelope of the dwelling or of a portion of it, such as the walls, doors, windows and skylights;

(c)  work relating to the replacement or addition of doors, windows and skylights with “ENERGY STAR” qualified models for the climate zone where the dwelling is located;

(d)  work relating to the replacement of a propane or natural gas heating system appliance with one of the following appliances using the same fuel:

i.  an “ENERGY STAR” qualified furnace with an Annual Fuel Utilization Efficiency (AFUE) of at least 95% and equipped with a brushless direct current (DC) motor,

ii.  a zero-clearance furnace with an AFUE of at least 95%, if the dwelling is a mobile home, and

iii.  an “ENERGY STAR” qualified boiler with an AFUE of at least 95%;

(e)  work relating to the replacement of an indoor wood-burning system or appliance with one of the following:

i.  an indoor wood-burning system or appliance that complies with the CSA-B415.1-10 standard or the 40 CFR Part 60 Subpart AAA standard of the Environmental Protection Agency (EPA) of the United States on wood-burning appliances; if the appliance is not tested by the EPA, it must be certified in accordance with the CSA-B415.1-10 standard,

ii.  an indoor pellet-burning appliance, including stoves, furnaces and boilers that burn wood, corn, grain or cherry pits, and

iii.  an indoor masonry heater;

(f)  work relating to the replacement of a solid fuel-fired outdoor boiler with an outdoor wood-burning heating system that complies with the CAN/CSA-B415.1 standard or the Outdoor Wood-fired Hydronic Heater program of the EPA (OWHH Method 28, phase 1 or 2), provided the capacity of the new system is equal to or smaller than the capacity of the one it replaces;

(g)  work relating to the installation of an “ENERGY STAR” qualified central split or ductless mini-split air-source heat pump including an outdoor unit and at least one indoor head per floor, excluding the basement, that has an Air-Conditioning, Heating, and Refrigeration Institute (AHRI) number and satisfies the following minimum requirements:

i.  it has a Seasonal Energy Efficiency Ratio (SEER) of 14.5,

ii.  it has an Energy Efficiency Ratio (EER) of 12.0,

iii.  it has a Heating Seasonal Performance Factor (HSPF) of 7.1 for region V, and

iv.  it has a heating capacity of 12,000 Btu/h;

(h)  work relating to the installation of a geothermal system certified by the Canadian GeoExchange Coalition (CGC); for that purpose, only a CGC-certified business may install the heat pump in accordance with the CAN/CSA-C448 standard and the CGC must certify the system after installation;

(i)  work relating to the replacement of the heat pump of an existing geothermal system; for that purpose, only a business certified by the CGC may install the heat pump in accordance with the CAN/CSA-C448 standard;

(j)  work relating to the replacement of an oil heating system with a system using propane or natural gas or the replacement of a propane heating system with a system using natural gas, provided the new system uses one of the following heating appliances:

i.  an “ENERGY STAR” qualified furnace with an Annual Fuel Utilization Efficiency (AFUE) of at least 95% and equipped with a brushless direct current (DC) motor,

ii.  a zero-clearance furnace with an AFUE of at least 95%, if the dwelling is a mobile home, and

iii.  an “ENERGY STAR” qualified boiler with an AFUE of at least 95%;

(k)  work relating to the replacement of an oil, propane or natural gas heating system with a system using electricity;

(l)  work relating to the replacement of an oil, propane, natural gas or electricity heating system with a qualified integrated mechanical system (IMS) that is CSA-P.10-07 certified and achieves the premium performance rating;

(m)  work relating to the installation of solar thermal panels that comply with the CAN/CSA-F378 standard;

(n)  work relating to the installation of combined photovoltaic-thermal solar panels that comply with the CAN/CSA-C61215-08 and CAN/CSA-F378 standards;

(o)  work relating to the replacement of a window air-conditioning unit or central air-conditioning system with an “ENERGY STAR” qualified central split or ductless mini-split air-conditioning system including an outdoor unit and at least one indoor head per floor, excluding the basement, that has an Air-Conditioning, Heating, and Refrigeration Institute (AHRI) number and satisfies the minimum requirements specified in subparagraphs i and ii of paragraph g;

(p)  work relating to the replacement of a central air-conditioning system with an “ENERGY STAR” qualified central split or ductless mini-split air-source heat pump including an outdoor unit and at least one indoor head per floor, excluding the basement, that has an Air-Conditioning, Heating, and Refrigeration Institute (AHRI) number and satisfies the minimum requirements specified in subparagraphs i to iv of paragraph g;

(q)  work relating to the replacement of a propane or natural gas water heater with one of the following appliances using the same fuel:

i.  an “ENERGY STAR” qualified instantaneous water heater that has an energy factor (EF) of at least 0.82,

ii.  an “ENERGY STAR” qualified instantaneous condensing water heater that has an EF of at least 0.90, or

iii.  a condensing storage-type water heater that has a thermal efficiency of 95% or more;

(r)  work relating to the replacement of an oil-fired water heater with a water heater using propane or natural gas or the replacement of a propane-fired water heater with a water heater using natural gas, provided the new water heater is described in any of subparagraphs i to iii of paragraph q;

(s)  work relating to the replacement of an oil, propane or natural gas water heater with a water heater using electricity;

(t)  work relating to the installation of a solar hot water system that provides a minimum energy contribution of seven gigajoules per year and is CAN/CSA-F379 certified, provided such system appears on the CanmetENERGY Performance Directory of Solar Domestic Hot Water Systems;

(u)  work relating to the installation of a drain-water heat recovery system;

(v)  work relating to the installation of solar thermal panels that comply with the CAN/CSA-F378 standard;

(w)  work relating to the installation of combined photovoltaic-thermal solar panels that comply with the CAN/CSA-C61215-08 and CAN/CSA-F378 standards;

(x)  work relating to the installation of an “ENERGY STAR” qualified heat recovery ventilator or energy-recovery ventilator certified by the Home Ventilating Institute (HVI) and listed in Section 3 of its product directory (Certified Home Ventilating Products Directory) if, where the installation makes it possible to replace an older ventilator, the new appliance is more efficient than the older one;

(y)  work relating to the installation of an underground rain water recovery tank;

(z)  work relating to the construction, renovation, modification or rebuilding of a system for the discharge, collection and disposal of waste water, toilet effluents or grey water in accordance with the Regulation respecting waste water disposal systems for isolated dwellings(chapter Q-2, r. 22);

(z.1)  work relating to the restoration of a buffer strip in accordance with the requirements of the Protection Policy for Lakeshores, Riverbanks, Littoral Zones and Floodplains (chapter Q-2, r. 35);

(z.2)  work relating to the decontamination of fuel oil-contaminated soil in accordance with the requirements of the Soil Protection and Contaminated Sites Rehabilitation Policy of the Ministère du Développement durable, de l’Environnement, de la Faune et des Parcs, available on that department’s website;

(z.3)  work relating to the construction of a green roof; for that purpose, a green roof is a roof that is fully or partially covered with vegetation and that includes a waterproof membrane, a drainage membrane and a growth medium to protect the roof and host vegetation;

(z.4)  work relating to the installation of photovoltaic solar panels that comply with the CAN/CSA-C61215-08 standard; or

(z.5)  work relating to the installation of a domestic wind turbine that complies with the CAN/CSA-C61400-2-08 standard.

2015, c. 21, s. 492.