The 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.
Examples of eligible
- Renovating a kitchen, bathroom or basement
- New carpet or hardwood floors
- Building an addition, garage, deck, garden/storage shed, fence
- Re-shingling a roof
- A new furnace, woodstove, boiler, fireplace, water softener or water heater
- A new driveway or resurfacing a driveway
- Painting of interior or exterior of a house
- Window coverings directly attached to the window frame and whose removal would alter the nature of the dwelling
- Laying new sod
- Fixtures - lights, fans, etc.
- Associated costs such as permits, professional services, equipment rentals and incidental expenses.
Examples of Ineligible
- Furniture, appliances, and audio and visual electronics
- Purchasing of tools
- Cleaning carpets
- House cleaning
- Maintenance contracts (e.g. furnace cleaning, snow removal, lawn care, and pool cleaning)
How the Home Renovation Tax Credit Will Work
Canadian homeowners can claim a 15%, non-refundable tax credit for the eligible expenditures exceeding $1,000, but not more than $10,000, meaning that the maximum tax credit that can be received is $1,350 ($9,000 x 15%). Taxpayers can claim the credit when filing their 2009 tax return.
Who can claim the HRTC?
An eligible dwelling is a housing unit that is eligible to be an individual's principal residence or that of one or more of their family members, at any time between January 27, 2009 and February 1, 2010.
When the HRTC Begins and Ends
The credit will be based on eligible expenditures for work performed or goods acquired after January 27, 2009, and before February 1, 2010. Expenditures incurred pursuant to an agreement that was entered into before January 28, 2009, will not be eligible for the credit.
What Should Consumers Do?
Begin to save your receipts for any home improvement projects that you are currently working on that qualify for the tax credit.