As you've heard, the 2009 Federal budget offered a new renovation tax credit of up to $1,350 toward a wide variety of home improvements. It is a one-year program and covers renos to houses, condos and cottages. The program offers a tax credit of up to 15% of renovations costs over $1,000 up to a maximum of $10,000 in renovation costs. The maximum benefit is thus 15% of $9,000 or $1,350. It comes right off your tax bill, and they'll want to see receipts! For more info, check out this link: Home Renovation Tax Credit
So what renovation project will return the most for your investment? According to the Appraisal Institute of Canada, the return on your reno costs is the estimated increased value of your home in relation to what you spend.
Kitchens and bathrooms are at the top of the list with an estimated return of 75% - 100%
Decks are 50% - 75%
Basements are 50% - 75%
So, help get the economy moving and consider a reno project this year. You'll get a tax break, enjoy a new look to your home, and increase the resale value.