ECOShift

With the introduction of the new home renovation tax credit in the recent budget proposal you may be able to qualify for rebates when undertaking green renovation projects.  The HRTC is proposed to be valid on project undertaken after Jan 27, 2009 and before Feb 1, 2010 so there is only one year to take advantage of this credit.  The budget has not yet been fully approved and some details are still pending but based on information currently released the new Home Renovation Tax Credit (HRTC) can translate to a tax savings of $150 for every $1000 spent on renovations to your home.

According to those we have spoken to in Ottawa the HRTC credit is applied above and beyond any already existing credits available through the ecoENERGY Retrofit Program offered by NRCAN.    

Below is a quick snapshot from the budget website (http://www.budget.gc.ca/) outlining the details of the HRTC.  To keep on top of the HRTC details visit the site often as new information and links will be updated regularly. 

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 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 incidental expenses.

Routine repairs and maintenance will not qualify for the credit. Nor will the cost of purchasing furniture, appliances, audio-visual electronics or construction equipment.

Examples of HRTC Eligible and Ineligible Expenditures

Eligible

• 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

Ineligible

• Furniture and appliances (refrigerator, stove, couch)
• Purchase of tools
• Carpet cleaning
• Maintenance contracts (furnace cleaning, snow removal, lawn care, pool cleaning, etc.)

For more details visit the budget website (www.budget.gc.ca) often as new information may be posted regularly.  If you are uncertain as to eligibility of a project you are planning we would recommend you contact the governement directly to ensure you are not unpleasantly suprised when you apply for your credit.