DON'T MISS THE OPPORTUNITY!! THERE IS STILL TIME!!
Home renovations are great investments in the long term value of a home and also create more economic activity by increasing the demand for labour, building materials and other goods. Renovations may also reduce energy consumption and potentially the cost of owning a home down the line.
To provide some $3 billion of much-needed fiscal stimulus and encourage investments in Canada's housing stock, Budget 2009 proposes to implement a temporary Home Renovation Tax Credit (HRTC).
Temporary, Timely and Targeted Stimulus
The HRTC will apply to eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010, pursuant to agreements entered into after January 27, 2009. The temporary nature of the 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 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 re-modelling 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 furniture, appliances, audio-visual electronics or construction equipment.
About 4.6 million families in Canada are expected to benefit from the credit.
Taxpayers can claim the HRTC when filing their 2009 tax return.
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.
Family members will be able to share the credit.
Examples of HRTC Eligible and Ineligible Expenditures
Eligible
- Renovating 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
- Resurfacing a driveway
- Laying new sod
Ineligible
- Furniture and appliances (refrigerator, stove, couch)
- Purchase of tools
- Carpet cleaning
- Maintenance contracts (furnace cleaning, snow removal, lawn care, pool cleaning, etc.)
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 (http://www.cra.gc.ca/). Information is also available at http://www.fin.gc.ca/
Copies of this brochure are available from the Department of Finance or Service Canada:Department of Finance Canada, Distribution Centre, Room P-135, West Tower. 300 Laurier Avenue West. Ottawa, Ontario K1A 0G5 Phone: 613-995-2855 Fax: 613-996-0518
Service Canada 1-800 O-Canada (1-800-662-6232) 1-800-926-9105 (TTY) E-mail: services-distribution@fin.gc.ca
Information courtesy of Canada Revenue Agency
For more information, questions or concerns, please do not hesitate to contact me.
