Federal Home Renovation Tax Credit

Federal Home Renovation Tax Credit


What is the Home Renovation Tax Credit (HRTC)?

The proposed HRTC is a non-refundable tax credit for work performed or goods acquired in respect of an eligible dwelling.

What is eligible?

To be eligible, expenditures incurred in relation to a renovation or alteration to an eligible dwelling (or the land that forms part of the eligible dwelling) must be of an enduring nature and integral to the dwelling, and shall include the cost of labour and professional services, building materials, fixtures, rentals, and permits.

Renovating kitchens, bathrooms, and basements; building an addition, deck, or fence; new furnaces and water heaters; interior and exterior painting; driveway resurfacing, and laying new sod are all eligible expenditures.

The credit can be claimed on eligible expenditures incurred on one or more of an individual's eligible dwellings. Properties eligible for the HRTC are houses, cottages and condominium units that are owned for personal use.

Routine repairs and maintenance will not qualify for the credit. Nor will the cost of purchasing furniture, appliances, audio-visual electronics or construction equipment.

When does it start?

The HRTC is only available for work performed or goods acquired after January 27, 2009 and before February 1, 2010.

How the HRTC will work

The 15% 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.

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 (www.cra-arc.gc.ca).


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