Saanich’s Climate Action Tax Exemption (CATE) Program offers a municipal tax exemption for capital projects that involve fuel switching in commercial and multi-unit residential (rental apartment and condominium strata) buildings.
Properties can receive an exemption valued at between 50-100% of project costs after accounting for other rebates, with a maximum term of 10 years for residential buildings and 3 years for commercial buildings. To receive the exemption, participants must provide either proof of acceptance in a Provincial Incentive Program OR an energy or feasibility study by a Professional Engineer or Certified Energy Manager.
Available Incentives
A summary of the eligibility criteria for different building types under the Program are outlined in the following table. For an estimate of the potential tax exemption your project may receive through the Program, visit Saanich.ca/climatetaxexemption.
| Multi-Unit Residential Building (rental apartment or condominium strata) |
| a. Exemption amount: up to 100% of eligible project expenses (less incentives from other sources) b. Maximum exemption term: 10 years |
| Commercial Building |
| Where: (a) no electrical service upgrade is required; and (b) a gas backup system is installed or retained: a. Exemption amount: up to 50% of eligible project expenses (less incentives from other sources) b. Maximum exemption term: 3 years |
| Where: (a) an electrical service upgrade is required; and/or (b) a gas backup system is not installed or retained: a. Exemption amount: up to 80% of eligible project expenses (less incentives from other sources) b. Maximum exemption term: 3 years |
| Strata Property |
| Eligible Project Expenses and incentives are divided among strata lots proportional to the unit entitlement. |
| Mixed-Use Buildings (non-strata) |
| Exemption Amount is apportioned based on residential and commercial floor areas. |
Eligibility Requirements
- Property must be located within the District of Saanich.
- Commercial and/or multi-unit residential buildings.
- Residential and mixed-use buildings must have at least three residential units
- Each unit in a multi-unit residential buildings must have its principal access from an entrance or hallway common to other dwelling units (i.e., “apartment style” residential building, including condominium stratas and rental apartments); ground-oriented residential buildings such as townhomes, rowhomes and houseplexes are not eligible.
- There must not be any overdue property taxes or municipal utility bills owing for the property.
- Commercial buildings must have a land value ratio equal to or greater than 15, when calculated using the most recent BC Assessment values as per the following formula:
- Land value ratio = (Building value / Land value) x 100
- The retrofit project must replace a fossil-fuel mechanical system with an electric mechanical system for the building’s space heating and/or domestic hot water.
- Complementary energy efficiency upgrades (e.g., windows or insulation) are eligible if bundled within the project and eligible under a Provincial or Utility incentive program.
- For rental properties, no tenants may be evicted or permanently displaced as a result of improvements completed as part of the Project.
- Participants must commit to energy benchmarking for the duration of the exemption term.
How to Apply
Visit www.saanich.ca/climatetaxexemption for more information, including details on how to apply.