Canadians Encouraged To Use Home Renovation Tax Credit

by Mike Godfrey, Tax-News.com, Washington

07 August 2009

Homeowners are being encouraged to utilise Canada’s proposed Home Renovation Tax Credit (HRTC) if they plan to make renovations to their homes in the next six months.

Introduced in the government’s Economic Action Plan, the HRTC is a 15% non-refundable income tax credit on eligible home renovation expenditure on materials and labour within agreements entered into between 27 January 2009 and 1 February 2010. It may be claimed on expenditures of more than CAD1,000 (USD935) but not more than CAD10,000, and will therefore provide up to CAD1,350 in tax relief. It may be claimed within the 2009 tax return.

The Prime Minister, Stephen Harper recently reminded Canadians that:

“There has never been a better time to renovate your home. This new tax credit will help homeowners who renovate this year save on their taxes. In addition, these renovations will often lead to reduced energy costs or increases in the value of your home. Best of all, every time Canadians invest in renovations, they are also helping create construction and building-supplies jobs in their local communities.”

The HRTC is the subject of a national advertising campaign by the government as an integral part of its Economic Action Plan, and there is widespread interest in it from the public. While it has still to be passed by parliament and turned into law, this is not regarded as a problem due to the support it has received.

Recommended