2018 Ontario Energy and Property Tax Credit Calculator

Use this calculator to determine your 2018 Ontario Energy and Property Tax Credit. The credit helps homeowners offset their property taxes by providing a rebate for energy-efficient home improvements. This guide explains the credit's purpose, eligible expenses, calculation method, and provides a worked example.

How the 2018 Ontario Energy and Property Tax Credit Works

The Ontario Energy and Property Tax Credit (EPTTC) is a provincial program designed to encourage homeowners to make energy-efficient improvements to their properties. The credit provides a rebate that reduces the amount of property tax you owe.

The program was introduced in 2018 and has specific eligibility criteria, calculation methods, and limitations. Homeowners who qualify can receive a credit of up to 30% of the eligible expenses, with a maximum credit of $2,000 per year.

The 2018 Ontario Energy and Property Tax Credit was part of Ontario's broader energy efficiency initiatives. The program was designed to help reduce energy consumption and lower property taxes for eligible homeowners.

Eligible Expenses for the Credit

To qualify for the 2018 Ontario Energy and Property Tax Credit, your home improvement expenses must meet specific criteria. The eligible expenses include:

Energy-efficient windows and doors
Insulation improvements
High-efficiency furnaces and boilers
Energy-efficient lighting systems
Solar water heating systems
Geothermal heat pumps
Energy-efficient HVAC systems

Expenses must be incurred between January 1, 2018, and December 31, 2018, and must be for a principal residence. The improvements must also meet the Energy Star certification requirements or other recognized energy efficiency standards.

Calculation Method and Formula

The 2018 Ontario Energy and Property Tax Credit is calculated using the following formula:

Credit Amount = Eligible Expenses × Credit Rate

Where:

Eligible Expenses = Total cost of qualified energy-efficient improvements
Credit Rate = 30% (maximum credit rate)

The credit amount cannot exceed $2,000 per year.

The credit is applied to your property tax assessment, reducing the amount of tax you owe. The credit is non-refundable, meaning it cannot be carried forward to future years if not used in the year it is earned.

Example Calculation

Let's walk through an example to illustrate how the 2018 Ontario Energy and Property Tax Credit works. Suppose you made the following energy-efficient improvements to your home in 2018:

Installed energy-efficient windows: $3,000
Upgraded insulation: $2,500
Installed a high-efficiency furnace: $4,000

Total eligible expenses: $3,000 + $2,500 + $4,000 = $9,500

Credit amount: $9,500 × 30% = $2,850

However, the maximum credit is $2,000, so you would receive $2,000 in credit.

This credit would be applied to your property tax assessment, reducing the amount of tax you owe by $2,000.

Frequently Asked Questions

What is the maximum credit I can receive under the 2018 Ontario Energy and Property Tax Credit?: The maximum credit is $2,000 per year, regardless of the amount of eligible expenses.
Can I carry forward any unused credit to future years?: No, the 2018 Ontario Energy and Property Tax Credit is non-refundable and cannot be carried forward to future years.
Are there any income limits for qualifying for the credit?: Yes, the credit is available to homeowners with a combined family income of $150,000 or less. For each $1,000 above $150,000, the credit is reduced by $200.
Do I need to provide proof of the energy-efficient improvements to claim the credit?: Yes, you must provide documentation, such as receipts and installation certificates, to verify the eligible expenses.
Can I claim the credit if I rented out my principal residence?: No, the credit is only available to homeowners who occupy the property as their principal residence.