Reintroduce a tax incentive for home builders known as the Multi-Unit Rental Building (MURB) • YouBetcha

Current Status

Status: Not Started The government has not taken concrete action to reintroduce the specific Multi-Unit Rental Building (MURB) tax incentive as promised.

Background

The promise to reintroduce the Multi-Unit Rental Building (MURB) tax incentive harks back to a policy from the 1970s that was credited with driving the construction of tens of thousands of rental housing units across Canada. At the time, the MURB program offered tax benefits to developers and investors to encourage the building of multi-unit rental properties, addressing housing shortages in urban centers. Reintroducing this incentive was pitched as a targeted solution to today’s housing affordability crisis, where rental supply struggles to keep pace with demand, particularly for younger Canadians and families. Fulfilling this commitment would require specific legislative or budgetary measures to reinstate a tax mechanism explicitly tied to the MURB framework, aimed at incentivizing builders to prioritize rental housing. [7]

Evidence

Since the current government’s focus on housing affordability became prominent in recent years, several announcements and plans have been made to address the broader housing crisis, but none directly pertain to the reintroduction of the Multi-Unit Rental Building (MURB) tax incentive as originally promised. In April 2022, Prime Minister Justin Trudeau and Deputy Prime Minister Chrystia Freeland highlighted Budget 2022 measures aimed at making housing more affordable, including a $4 billion Housing Accelerator Fund to create 100,000 new housing units over five years. This initiative, while significant, does not mention or align with a specific MURB tax incentive for rental housing builders. [7]

Further, on April 12, 2024, the government unveiled a comprehensive housing plan titled "Solving the housing crisis: Canada’s Housing Plan," announced by Trudeau, Freeland, and Housing Minister Sean Fraser. This plan addresses various aspects of the housing crisis, emphasizing the need to build millions of homes and reduce costs for construction. However, the announcement lacks any reference to a targeted tax incentive resembling the MURB program from the 1970s, focusing instead on broader funding and policy measures. [8]

Legislative actions under review, such as Bill C-56 (passed with Royal Assent on December 15, 2023) amending the Excise Tax Act, introduce a temporary enhancement to the GST New Residential Rental Property Rebate for purpose-built rental housing. While this measure supports rental housing development, it does not equate to the reintroduction of the MURB tax incentive, which was a distinct policy focused on direct tax benefits for builders. [4] Similarly, Bill C-4, introduced at first reading, proposes amendments to the Excise Tax Act and other regulations, but again, no specific mention of a MURB-style tax incentive appears in the text. [5]

Other sources, including Natural Resources Canada documents on multi-unit residential buildings (MURBs) and eligibility for the Canada Greener Homes Initiative, define MURBs in the context of energy efficiency grants and loans, not tax incentives for construction. These programs, which closed for new submissions on December 31, 2025, are unrelated to the promised tax policy. [1][2] Additional legislative texts and regulations, such as the Real Property (GST/HST) Regulations and sections of the Excise Tax Act, address technical definitions and tax treatments for residential properties but do not indicate a policy shift toward reinstating the MURB incentive. [3][6]

Throughout the current government’s tenure, no documented evidence shows a concrete step—such as tabling legislation, issuing a budget line item, or implementing a program—specifically tied to reviving the MURB tax incentive as it was historically structured or as promised. Announcements and broader housing strategies dominate the public record, but they fall short of actionable policy on this particular commitment.

Assessment

The government’s promise to reintroduce the Multi-Unit Rental Building (MURB) tax incentive remains unfulfilled, with no tangible progress to report as of March 10, 2026. Despite multiple high-profile announcements on housing affordability, including Budget 2022’s Housing Accelerator Fund and the 2024 housing plan, none of these initiatives directly address or replicate the specific tax incentive tied to MURB that was central to the original commitment. Legislative measures like the GST rebate enhancements for rental housing in Bill C-56 are steps in a related direction, but they do not match the promise of reviving a distinct MURB tax benefit as it existed in the 1970s to spur rental unit construction.

This gap between broad housing policy and the targeted promise of a MURB incentive leaves the commitment untouched in practical terms. Public statements and funding allocations, while significant for the housing sector, do not substitute for the specific policy action required to bring this historical tax mechanism back to life. Until such a step is taken—through legislation or a clear budgetary measure explicitly linked to MURB—the government cannot be credited with advancing this pledge.

The housing crisis continues to press on Canadians, and the absence of this promised incentive represents a missed opportunity to leverage a proven tool from the past. For now, the record shows only plans and parallel efforts, not the direct action needed to honor this specific commitment. The status of this promise stands as a reminder of the challenges in translating historical policy successes into modern solutions amidst a complex affordability landscape.

Current Status

Background

Evidence

Assessment

Sources