HRM Secondary Unit Incentive Grant
Up to $13,000 in non-repayable grants from Halifax Regional Municipality.
Grants and incentives
Backyard suite grants and incentives available in HRM
A few programs are currently available that can help offset the cost of building a backyard suite in Halifax and across HRM. This page summarizes each one so homeowners know what to look into early in their planning.
Programs change. Always verify current eligibility and deadlines directly with the program before making financial decisions. We are not financial advisors — we share this as a starting point.
Currently available programs
Federal Multigenerational Home Renovation Tax Credit
A refundable federal tax credit worth up to $7,250 for eligible renovation work.
Efficiency NS EnergyForward New Homes
Incentives for energy-efficient new home construction from Efficiency Nova Scotia.
HRM Secondary Unit Incentive Grant
The Second Unit Incentive Program (SUIP) is offered by Halifax Regional Municipality as part of the federal Housing Accelerator Fund. It provides non-repayable grants to homeowners who build a backyard suite, secondary suite, or duplex conversion on their property.
- Up to $13,000 in non-repayable grants
- Covers Halifax Water fees and water/wastewater infrastructure costs
- Building permit must be applied for after March 18, 2025
- Grant application deadline: October 11, 2026
- Occupancy permit must be obtained by April 1, 2027
- The unit cannot be used as a short-term rental within five years of receiving the occupancy permit
- Non-profit organizations and housing co-operatives are now also eligible
Applications are made through the HRM customer portal by the property owner. Contractors cannot apply on behalf of owners.
View the HRM Program PageFederal Multigenerational Home Renovation Tax Credit (MHRTC)
The Multigenerational Home Renovation Tax Credit is a refundable federal tax credit available to homeowners who create a self-contained secondary unit on their property.
- Claim up to $50,000 in qualifying renovation expenses
- The credit is 14.5% of eligible costs, up to a maximum of $7,250 per claim
- The secondary unit must allow a senior or a person eligible for the disability tax credit to live with a qualifying relative
- Claimed on your personal income tax and benefit return (Line 45355)
- The credit is refundable, meaning it can reduce your tax owing or be paid out if no tax is owed
Speak with a tax professional to confirm your specific eligibility and which expenses qualify.
View the CRA Program PageEfficiency NS EnergyForward New Homes
The EnergyForward New Homes program from Efficiency Nova Scotia offers incentives for new home construction that meets energy-efficiency requirements. A backyard suite built as a new structure may be eligible.
- Available to builders and home buyers — incentives are paid directly to the registrant
- Your project must be registered within 30 days of receiving your building permit, or before construction starts
- Construction must be complete and the final energy evaluation done within 18 months of registration
- Homes heated primarily with oil are not eligible
- Incentive amounts depend on the energy performance level achieved
| Annual Energy Bill Target | Incentive |
|---|---|
| ≤ $1,000 / year | $15,000 |
| $0 / year (net-zero) | $25,000 |
Register early — the program requires registration before or shortly after your permit is issued. Contact Efficiency NS at 1-877-999-6035 or info@efficiencyns.ca to confirm your backyard suite qualifies and to understand the current incentive tiers.
View the Efficiency NS Program GuideProgram no longer available
The Nova Scotia Secondary / Backyard Suite Incentive Program — a provincial forgivable loan offered by the Government of Nova Scotia — is no longer available. If you came across a reference to it while researching, that information is outdated. The three programs listed above are the current options we are aware of.
We recommend contacting each program directly to confirm current availability before planning around any incentive.
How these programs can stack
Depending on your project and eligibility, it may be possible to benefit from more than one program on the same build. For example, the HRM grant covers municipal costs, the federal tax credit applies to renovation expenses for qualifying multigenerational projects, and the Efficiency NS program rewards energy performance. Each has its own eligibility rules and timelines.
A tax professional, financial advisor, or the program contacts above can help you understand which combinations apply to your specific situation.
What we help with
We do not administer these programs and we are not financial advisors. What we can do is help your project move forward in a way that keeps you eligible where possible — including applying for permits on the right timeline, building to energy-efficiency standards, and providing clear cost documentation you may need for grant applications.
Ready to talk about your backyard suite?
We can review your property, walk through the process, and help you understand where these programs might fit into your timeline.