Q- Are non-profit housing providers eligible for the Canada Emergency Wage Subsidy (CEWS) program? [Updated 7/6/2020]
A- Likely yes, with some exceptions.
Most non-profit housing providers should be eligible for CEWS.
In order to be eligible for CEWS, an organization must be considered an “eligible entity.” Included among the eligible entities are tax-exempt organizations in the Income Tax Act, including non-profit organizations. Most non-profit housing providers should be considered eligible entities as tax-exempt non-profit organizations.
However, some tax-exempt non-profit housing providers may also fall under provisions in the Income Tax Act that are not considered eligible for CEWS. Ineligible housing providers would likely include:
- Limited-dividend housing companies incorporated to construct, hold and manage a low-rental housing project, with payable dividends of 5% or less per year (this exclusion would not apply to most non-profit housing providers.)
- Organizations that exclusively provide low-cost housing for seniors. Organizations providing other types of housing in addition to low-cost housing for seniors would likely still be considered eligible.
For more information on CEWS, including eligibility information for employers and employees, a subsidy calculator and application guide, see the CEWS webpage.