Renovation Tax Credit Stimulus
Wednesday, March 4th, 2009
Effective Jan. 27, any Canadian who spends money on home renovations will be eligible to receive up to $1,350 in tax relief, thanks to the new Home Renovation Tax Credit proposed in the Government’s Economic Action Plan.
“Each time a Canadian invests in home renovations, they are helping to create jobs in construction and building supplies in their own community,” said the Honourable Lisa Raitt, Minister of Natural Resources Canada. “By providing an incentive for Canadians to invest in their homes, we are also encouraging them to invest in local jobs.”
To highlight the kind of projects that will be eligible under this plan, the Minister visited a Victoria-area home renovation site and met with a local contractor who will be better able to protect and create jobs thanks to the additional home renovation projects that will be encouraged through this tax credit.
The Home Renovation Tax Credit will provide a one-year, temporary 15% income tax credit on eligible home renovation expenditures for work performed, or goods acquired, between January 27, 2009 and February 1, 2010. The credit may be claimed on eligible expenditures exceeding $1,000 but not more than $10,000.
Home renovations can represent a smart investment in the long-term value of a home and generate broad-based economic activity. They can also reduce energy consumption and the long-term cost of owning a home. To support economic growth during these challenging times, Budget 2009 proposes to introduce a temporary Home Renovation Tax Credit (HRTC).
