New Provincial Tax Credit to Encourage Home Renovations

The Québec government has recently announced that a new refundable tax credit – LogiRénov – has been implemented on a temporary basis for residential renovations. This tax credit will be granted to homeowners who have recognized renovation work done to their principal residence, such as finishing the basement or renovating a kitchen, accompanied by a signed contract with a qualified contractor before July 1, 2015.

 According to information published, the financial assistance corresponds to 20 per cent of the portion of eligible expenses that exceeds $3,000. Thus, the maximum tax credit amount of $2,500 will be awarded for work that totals $15,500 or more. Renovations consisting only of repair work or annual, periodic or routine maintenance are not eligible, and the same applies to work undertaken exclusively as a result of breakage, damage or a defect.

Owner-occupants must pay for the renovations and have them executed before January 1, 2016, to benefit from this program. To be eligible for the tax credit, the renovations must be primarily focused on what is considered as the living area of the residence, its exterior siding and its roof.

Note that the previous government implemented the temporary ÉcoRénov tax credit in 2013, which was an improvement to the Rénoclimat energy efficiency program. Any financial assistance paid out under the ÉcoRénov environmentally responsible tax credit or the Rénoclimat program can be granted concurrently with that of the new LogiRénov tax credit.

The French and English versions of this bulletin are available on the Ministère des Finances website at: www.finances.gouv.qc.ca

Ramin Rafeyan

Ramin Rafeyan

Real Estate Broker
CENTURY 21 Immo-Plus
Contact Me