TP-1029.AE - Tax Credit for the Upgrading of Residential Waste Water Treatment Systems

Information

Person claiming the credit

In order to claim the tax credit for the upgrading of residential waste water treatment systems, you must meet all the following conditions:

• You were resident in Québec on December 31, 2020 or, if you ceased to reside in Canada in 2020, you were resident in Québec on the day on which you ceased to reside in Canada.
• You were the owner or co-owner of the eligible dwelling when the expenditures were incurred.
• The eligible dwelling was your principal residence when the expenditures were incurred. If the dwelling is a cottage, it must be suitable for year-round occupancy and must normally be occupied by you.
• You are claiming the tax credit for qualified expenditures paid in 2020.

Note
If you are filing this form on behalf of a person who died in 2020, the deceased must have been resident in Québec on the date of his or her death.

Eligible dwelling

In order to be eligible, the dwelling must meet the following conditions:

• It is located in Québec.
• Construction was completed by January 1, 2017.
• It is not the object of an expropriation notice, a notice of intention to expropriate, a reserve for public purposes, a prior notice of the exercise of a hypothecary right registered in the registry office or any other procedure calling your right of ownership of the dwelling into question.
• It is an isolated dwelling¹ within the meaning of the Regulation respecting waste water disposal systems for isolated dwellings, or is part of such a dwelling, and falls within the scope of section 2 of the Regulation.
• It was your principal place of residence when the expenditures were incurred. If the dwelling is a cottage, it is suitable for year-round occupancy and is normally occupied by you.

Renovation contract

The renovation work must have been done under a contract entered into after March 31, 2017, and before April 1, 2022, between a contractor and:

• you;
• your spouse on the date the contract was entered into; or
• any other person who was a co-owner (or the spouse of a co-owner) of the dwelling on the date the contract was entered into.

Note
If the eligible dwelling is located in a condominium, the contract must have been entered into by the building’s syndicate of co-owners.

Contractor

The contractor who did the work:

• must not have been the owner or co-owner of the dwelling, nor the spouse of the owner or any of the co-owners of the dwelling, on the date the contract was entered into;
• must have had an establishment in Québec on the date the contract was entered into;
• must hold a subclass 2.4 licence (private sewerage systems) from the Régie du bâtiment du Québec and has obtained licence security.

Recognized work

Recognized work for a dwelling, including work to restore the premises, must comply with Québec legislation and regulations and with applicable municipal regulations. The recognized work must relate to the construction, renovation, modification, rebuilding, relocation or enlargement of a system for the discharge, collection and disposal of waste water, toilet effluents or grey water of an eligible dwelling.

Qualified expenditures

To qualify for the tax credit, the expenditures for recognized work must have been paid by:

• you (or your legal representative);
• your spouse on the date the expenditures were paid; or
• any other person who was a co-owner of the dwelling on the date the expenditures were incurred.

Qualified expenditures include:

• the cost of any permits required to do the work, including any studies needed to obtain those permits;
• the cost (including taxes) of any goods that:

• were used in carrying out the work,
• were supplied by the contractor or purchased, after March 31, 2017, from a merchant registered for the QST,²

• the cost (including taxes) of the services rendered by the contractor in carrying out the work; and
• the cost of any necessary cleanup.

The following are examples of excluded expenditures:

• expenditures related to a part of the dwelling that is used to earn business or rental income;
• expenditures used to finance the cost of recognized work;
• expenditures attributable to goods or services supplied by a person not dealing at arm’s length with you or one of the other owners of the dwelling, unless the person is registered for the QST.

Condominium

If the eligible dwelling is a condominium, the qualified expenditures include any expenditure paid by the syndicate of co-owners, up to the amount of your unit’s share of that expenditure.

In such a case, the syndicate of co-owners must have given you a completed copy of form TP-1029.AE.D-V that describes the work carried out and lists your unit’s share of that expenditure.

To calculate the amounts to enter on lines 35, 36, 43, 44, 51, 52 and 202 of this form, based on your unit’s share, multiply lines 35, 36, 43, 44, 51, 52 and 102 of form TP-1029.AE.D-V by line 121 of that form.

Owner of an immovable containing more than one dwelling

If you are the owner of an immovable containing more than one dwelling, you must determine the percentage of the immovable’s habitable area that your eligible dwelling occupies. To do so, divide the total area of your dwelling by the total habitable area of the immovable, then multiply the result by 100.

Enter on lines 35, 36, 43, 44, 51, 52 and 302 the amounts based on your unit’s share.

____________________

1. A single-family or multi-family dwelling is considered an isolated dwelling if it has no more than six bedrooms.
2. If the merchant is a small supplier under the Act respecting the Québec sales tax and is not registered for the QST for that reason, the merchant will nonetheless be considered to be a QST registrant.