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The tax credit is a loan offered by the provincial and federal GST and QST. This credit is available to purchasers of a new property. Most of the time the credit is absorbed by the contractor at the signing of the deed.

Example of tax credit
The example is based on buying a new property with a value of 100 000.00 $

House value 100 000.00 $ House value 100 000.00 $
GST 6% 6 000.00 $ QST 6% 6 000.00 $
Credit 0% of 6 000.00 $ 0.00 $ Credit 36% of 6000.00 $ 2 160.00 $
Sub Total 106 000.00 $ Sub Total 103 840.00 $
QST 7.5% 7 950.00 $ QST 7.5% 7 788.00 $
Credit 0% of 8 025.00 $  0.00 $ Credit 36% of 7 788.00 $ 2 803.68 $
TOTAL  113 950.00 $ TOTAL 108 824.32 $

Total of credits 4 963.68$

Responsibility of the buyer for the tax credit
When the tax credit is initially absorbed by the contractor, the purchaser is required to sign a letter of credit to the contractor. This signature must be submitted within a period of 30 to 90 days after the sale of the new property. Signing the letter of credit enables the contractor to recover the credit absorbed during the sale.