The Home Renovation Tax Credit - The Economic Action Plan
Home Renovations are smary investments in the long-term value of a home and also create economic activity by increasing the demand for labour, building materials and other goods. Renovations can also reduce energy consumption and the long-term cost of owning a home.
For a Limited Time
The Home Renovation Tax Credit (HRTC) will apply to eligible home renovation expenditures for work performed, or goods acquired after January 27th 2009, and before February 1, 2010, pursuant to agreements entered into after January 27, 2009. The temporary credit will provide an immediate incentive for Canadians to undertake new renovations or accelerate planned projects.
The HRTC can be claimed for renovations and enduring alterations to a dwelling, or the land on which it sits.
How the HRTC Will Work
The 15-per-cent credit may be claimed on the portion of eligible expenditures exceeding $1,000, but not more than $10,000, meaning that the maximum tax credit that can be received is $1,350.
The credit can be claimed on eligible expenditures incurred on one or more of an individual's eligible dwellings. Properties eligible for the HRTC include houses, cottages and condominium units that are owned for personal use.
Renovation costs for projects such as finishing a basement or remodeling a kitchen will be eligible for the credit, along with associated expenses such as building permits, professional services, equipment rentals and incidental expenses.
Routine repairs and maintenance will not qualify for the credit. Nor will the cost of purchasing furiniture, appliances, audio-visual electronics or construction equipment.
Note: Eligible renovation expenditures claimed under the Medical Expense Tax Credit may also be claimed under the HRTC.
Who Can Clain the HRTC?
About 4.6 million families in Canada are expected to benefit from the credit.
Taxpayers can clain the HRTC when filing their 2009 tax return. Receipts will be required when filing your taxes.
Eligibility for the HRTC will be family-based. For the purpose of the credit, a family is generally considered to consist of an individual and, where applicable, the individual's spouse or common-law partner.
Familly members will be able to share the credit.
Examples of HRTC Eligible and Ineligble Expenditures
Eligible:
- Renovating a kitchen, bathroom or basement
- New carpet or hardwood floors
- Building an addition, deck, fence or retaining wall
- A new furnance or water heater
- Painting the interior or exterior of a house
- Resurfacing a driveway
- Laying new sod
Ineligible:
- Furniture and appliances (e.g., refridgerator, stove, couch)
- Purchase of tools
- Carpet cleaning
- Maintenance contracts (e.g., furnance cleaning, snow removal, lawn care, pool cleaning)
For more information about the HRTC or to find a contractor to help you with your next home renovation project please contact us at support@quickcontractors.com
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