Home renovations are smart investments in
the long term value of a home and also create
economic activity by increasing the demand for
labour, building materials and other goods. Renovations
can also reduce energy consumption and the long-term
cost of owning a home.
To provide some $3 billion of much-needed fiscal stimulus
and encourage investments in Canada’s housing stock,
Budget 2009 proposes to implement a temporary
Home Renovation Tax Credit (HRTC).
Temporary, Timely and
The HRTC will apply to eligible home renovation
expenditures for work performed, or goods acquired,
after January 27, 2009 and before February 1, 2010,
pursuant to agreements entered into after January 27, 2009.
The temporary nature of the credit will provide an immediate
incentive for Canadians to undertake new renovations
or accelerate planned projects.
The HRTC can be claimed for renovations and enduring
alterations to a dwelling, or the land on which it sits.
How the HRTC Will Work
The 15-per-cent credit may be claimed on the portion
of eligible expenditures exceeding $1,000, but not more
than $10,000, meaning that the maximum tax credit that
can be received is $1,350.
The Home Renovation
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.
Renovation costs for projects such as finishing a basement
or re-modelling a kitchen will be eligible for the credit,
along with associated expenses such as building permits,
professional services, equipment rentals and
Routine repairs and maintenance will not qualify for the
credit. Nor will the cost of purchasing furniture, appliances,
audio-visual electronics or construction equipment.
Who Can Claim the HRTC?
About 4.6 million families in Canada are expected to benefit
from the credit.
Taxpayers can claim the HRTC when filing their
2009 tax return.
Eligibility for the HRTC will