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Time to Renovate: The Home Renovation Tax Credit Explained

This year the Government of Canada introduced the new Home Renovation Tax Credit, a first of it’s kind.  Due to the recent slump in economic markets and consumer spending, the 2009 budget includes new programs such as the Home Renovation Tax Credit, to make investing in equity easier and more rewarding to Canadians.  Find out what that means for your next renovation project with Super 7 Group!

Want to Renovate?  The Time is NOW!

The Canadian Home Renovation Tax Credit (HRTC) only applies to eligible home renovation expenditures for work performed, or goods acquired after January 27, 2009 and before February 1, 2010.  Agreements or contracts must be entered into after January 27, 2009 to qualify.

That makes now the perfect time to renovate.  The temporary nature of the credit will provide an immediate incentive for Canadians to undertake new renovations or accelerate planned projects.

Not only are you getting money back through the HRTC, but right now vendors are offering very competitive prices to stimulate consumer spending.

How the Home Renovation Tax Credit Works

The Home Renovation Tax Credit provides a 15% credit, claimed on the portion of eligible expenditures exceeding $1,000, but not more than $10,000.  This makes the maximum tax credit that can be received $1,350.

The credit can be claimed on eligible expenditures incurred on one or more of an individual’s eligible dwellings.  Properties eligible for the HRTC include houses, cottages, and condominium units that are owned for personal use.  Rental units are ineligible.

Renovation costs for projects such as finishing a basement or remodeling a kitchen are eligible for the credit, along with associated expenses such as building permits, professional services, equipment rentals and incidental expenses.  Here are a few examples of projects that are eligible and those that are not eligible:

Eligible	Ineligible
Renovating a kitchen, bathroom or basement New carpet or hardwood floors Building an addition, deck, fence or retaining wall A new furnace or water heater Painting the interior or exterior of a house Resurfacing a driveway Laying new sod	Furniture and appliances (refrigerator, stove, couch) Purchase of tools Carpet cleaning Maintenance contracts (furnace cleaning, snow removal, lawn care, pool cleaning, etc.)

Savings can add up quickly, and the investments made through renovation can make a huge difference in the equity of your home.  If you’re thinking about renovating, landscaping, home improvement projects or any kind of construction job within the next 12 to 18 months, consider accelerating your plans to take advantage of the HRTC by calling Super 7 Group today!.

For frequently asked questions regarding the Home Renovation Tax Credit (or HRTC), please visit the Canada Revenue Agency website.