The Home Renovation Tax Credit
Budget 2009 proposes to implement a temporary 15-per-cent Home Renovation Tax Credit (HRTC) to provide some $3 billion in tax relief to an estimated 4.6 million Canadian families. The HRTC will encourage investments in Canada's housing stock, provide employment for tradespeople and boost sales for those who make and sell building products.
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 15-per-cent credit may be claimed on the portion of eligible expenditures exceeding $1,000 but not more than $10,000, and will provide up to $1,350 in tax relief.
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.)
The HRTC can be claimed by homeowners for renovations and enduring alterations to a dwelling, or the land on which it sits.
A dwelling will generally be considered eligible for the credit if it is used for personal purposes, such as a house, cottage and condominium unit.
Additional information on the Home Renovation Tax Credit will soon be available on the Canada Revenue Agency's website at (www.cra.gc.ca).
provided by:
Ron Mahu
Mortgage Development Manager
Sarnia and Area
519-384-0096