As many of your know, the federal budget was announced recently. The three main new programs that affect homeowners are:
- First time home buyers INCOME TAX Credit of $750 for purchases after January 27, 2009;
- Increase in the Home Buyers' Plan limit for withdrawals from RRSPs from $20,000 to $25,000 after January 27, 2009
- Temporary home renovation INCOME TAX credit for eligible expenditures for work performed or goods acquired before February 1, 2010 for eligible dwellings that are the principal residence of the individual or family member. The non-refundable credit with the 15% of expenditures between $1,000 and $10, 000. Expenditures under $1,000 will not attract a tax credit. Maximum credit is $1,350.00.
These credits will not affect the costs to purchasers or vendors on completion, but may save you money when you file income taxes this year!