The government bill passed in the minority legislature Tuesday by a vote of 68 to 36, with the help of the New Democrats.
It was a promise Premier Dalton McGuinty made a year ago during the last election campaign.
The tax credit is worth up to $1,500 each year, or 15 per cent of up to $10,000 in eligible home renovation expenses.
They include wheelchair ramps, grab bars in the bathroom, handrails and renovations that will allow seniors to live on the first floor of their home.
It can be claimed by senior homeowners, tenants and people who share a home with a relative who's a senior.