The recent federal budget outlined a new tax credit that will provide assisstance for homeowners to renovate their homes. From January 28, 2009 to Februaury 10, 2010, Canadian homeowners can claim a 15%, non-refundable tax credit for eligible expentures after a $1,000,00. minium to an expenditure of $10,000 for a maximum credit of $1,350 ($9000 x 15%). This is in addition to the EcoEnergy retrofit program. Taxpayers can claim the HRTC when filing their 2009 tax return.
Example:
A couple replace all windows in the house and spend $10,000.00 in 2009. After taking into account the $1,000 minimum threshold, a 15-per-cent credit will be available on $9,000 in eligible expenditures, providing a tax credit of $1,350.
The credit is subject to the principle residence only and one credit per household. Homeowners should save all recipts that qualify and claim them on their 2009 taxreturn.
What types of products, services and expenses are eligible?
EligibleRenovating a kitchen, bathroom or basement
- New carpet or hardwood floors
- Building an addition, deck, fence or retaining wall
- A new furnace or water heater
- Painting the interior or exterior of a house
- Laying new sod
- Labour costs;
- Professional fees;
- Building materials;
- Fixtures;
- Equipment rentals; and Permits
Ineligible
- Furniture and appliances (refrigerator, stove, couch);
- Purchase of tools;
- Carpet cleaning; and
- Maintenance contracts (furnace cleaning,snow removal, lawn care, pool cleaning,
How Can I Get More Information?
Additional information on the Home Renovation Tax Credit will soon be available on Canada Revenue Agency's website at www.cra-arc.gc.ca Information is also available at Department of Finance Canada at www.fin.gc.ca
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