Tax Incentives For Your Permeable Driveway

March 29, 2023

Stormflow Surfacing offers many benefits beyond the use of recycled tires and a beautiful slip resistant surface. It is permeable and allows water to return to the water table. Several cities across Ontario offer tax incentives and grants for permeable driveways! A few municipalities that already offer this tax incentive include; Kitchener, Waterloo, Mississauga, Halton Region (Milton, Oakville, Burlington and surrounding areas), and Ottawa. Why would cities give these grants to homeowners? Quite simply, they know that their stormwater infrastructure cannot handle the huge rain storms we are receiving because of climate change. This is a way to divert more water away from aging infrastructure and reduce flooding.

In Kitchener and Waterloo, residents with a permeable driveway can qualify for a credit up to 45% of the monthly stormwater utility fees depending on the amount of water diverted from storm drains. In addition, by educating employees, the public, or students about stormwater and pollution reduction, homeowners can qualify for a 5% credit.

Conservation Halton offers financial support to residents for permeable pavement/paver projects under the Rainwater Conservation Fund. Landowners can qualify to receive a grant of up to $2,500 or 50% of their project cost depending on the region.

Mississauga also offers various stormwater credits. For the peak flow reduction, a maximum credit of up to 40% is offered. The credit amount depends on the percentage of reduction of the 100 year post-development flow to pre-development conditions. For the water quality treatment, a credit of up to 10% can be earned depending on how much of the hard surface is receiving the quality treatment. Runoff volume reduction earns up to 15% based on the amount of rainfall captured from the first 15 mm of rainfall during one sitting. Finally, pollution prevention can earn a credit of up to 5% depending on the development and implementation of a pollution prevention plan.

To mitigate climate and stormwater issues, Ottawa has begun to offer two new tax incentive programs to aid with the costs of permeable driveway installations. The first program, called “Better Homes Ottawa”, allows homeowners to access a zero-interest loan of anywhere between $15,000 to $125,000 for up to 20 years! The second program, named “Rain Ready Ottawa” provides education on various rainwater management projects. Homeowners who reside in high-priority regions also qualify for a rebate of up to $5,000 for the installation of permeable driveways!

Other regions like Peterborough offer a rain garden credit at this time. A rain garden is a “bowl-shaped” garden which collects rain and melted snow.

The City of Hamilton is going to implement a stormwater fee as of September 1, 2025.

We are seeing more municipalities in Ontario considering stormwater credits to encourage residents to install permeable driveways. Allowing the stormwater to flow back to the ground, instead of into undersized storm drains and directly into our lakes and rivers.

Stormwater Credit Additional Information, click on the links below:

City of Kitchener

City of Waterloo

Halton Region (Milton, Oakville, Burlington and surrounding areas)

City of Mississauga

City of Ottawa

City of Peterborough (currently rain garden credit only)

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