Rebate vs grant vs loan vs tax credit: what’s the difference?

Rebate or grant: mostly a choice of name

Both are money you don’t repay. The real differences are timing and paperwork. Ontario’s Home Renovation Savings can pay by cheque within about 60 days of approval. Québec’s Rénoclimat grant is claimed within 12 months of finishing the work and paid by cheque.

Hydro-Québec calls LogisVert payments grants, though they work like rebates. A few programs paid before the work: the federal Oil to Heat Pump Affordability grant was paid upfront, and is now closed to new applicants.

Some upfront money comes with conditions. New Brunswick’s oil-to-heat-pump advance must be repaid if the work isn’t finished by March 31, 2027.

Loans: help with cash flow, not savings

A loan lets you start the work without paying the whole bill upfront. Toronto’s Home Energy Loan Program lends up to $125,000, or 10% of the property’s assessed value if that is less. You repay it on your property tax bill over up to 20 years.

Because you pay loans back, our rebate finder leaves them out of your stacked total. It lists them separately so you can still use them alongside rebates. See rebate stacking for how programs combine.

Tax credits, and whether rebates are taxable

A tax credit reduces the tax you owe. A refundable credit is paid to you even if you owe no tax. The Multigenerational Home Renovation Tax Credit is refundable and worth up to $7,000 for 2026, for building a secondary unit for a senior or an adult with a disability.

Rebates themselves are a separate tax question. For most homeowners upgrading the home they live in, a rebate is generally not taxable income, but rentals are treated differently. Our guide to rebates and tax explains the rules and Québec’s Relevé 27 slip.