Social Development Minister Cathy Rogers says the credit would help seniors maintain their independence and remain a home.
It would provide a refundable personal income tax credit of up to $1,000 a year to help cover the cost of eligible home renovations worth up to $10,000.
Seniors who own their homes, those who rent and family members who are living with a senior would be eligible.
It would go into effect for the 2015 tax year.
The Liberals promised the tax credit during last year's election campaign.