Home Renovation Tax Credit Information
The Home Renovation Tax Credit was tabled as a stimulus to help our troubled economy. The following is taken from the details listed by the Canada Revenue Agency. Remember to keep your receipts.
Only available for the 2009 tax year
Under proposed changes, you can claim a non-refundable tax credit on your 2009 income tax return based on eligible expenditures incurred for work performed or goods acquired after January 27, 2009, and before February 1, 2010, in respect of an eligible dwelling. The Home Renovation Tax Credit (HRTC) applies to eligible expenditures of more than $1,000, but not more than $10,000, resulting in a maximum credit of $1,350 [($10,000 - $1000) x 15%].
Eligibility
In determining whether you are eligible to claim the Home Renovation Tax Credit (HRTC), you will need to take the following factors into account:
- Your dwelling must qualify. Generally, any dwelling that you own and is used personally by you or your family can qualify, including your home or cottage.
- Eligibility for the HRTC is family based. A family will be allowed a single credit that may be shared within the family.
- To be eligible, expenditures incurred in relation to a renovation or alteration to an eligible dwelling (or the land that forms part of the eligible dwelling) must be of an enduring nature and integral to the dwelling.
- The expenditures must have been incurred after January 27, 2009 and before February 1, 2010, according to an agreement entered into after January 27, 2009.
Eligible expenses
- Renovating a kitchen, bathroom or basement
- Windows and doors
- New carpet or hardwood floors
- A new furnace, woodstove, boiler, fireplace, water softener, water heater or oil tank
- Home ventilation systems (of a permanent nature)
- Central air conditioner
- Permanent reverse osmosis systems
- Septic systems
- Wells
- Fixtures – blinds, shades, shutters, lights, fans, etc.
- Electrical wiring in the home (example: changing from 100 amp to 200 amp service)
- Home Security System (monthly fees do not qualify)
- Solar panels and solar panel trackers
- Painting of interior or exterior of a house
- Building an addition, garage, deck, garden/storage shed, fence
- Re-shingling a roof
- A new driveway or resurfacing a driveway
- Exterior shutters and awnings
- Permanent swimming pools (in ground and above ground)
- Permanent hot tub
- Pool liners
- Solar heaters and heat pumps for pools (does not include solar blankets)
- Landscaping: new sod, perennial shrubs and flowers, trees, large rocks, permanent garden lighting, permanent water fountain, permanent ponds, large permanent garden ornaments.
- Retaining wall
- Associated costs such as installation, permits, professional services, equipment rentals and incidental expenses
Ineligible expenses
- Furniture, appliances, and audio and visual electronics
- Purchasing of tools
- Cleaning carpets
- House cleaning
- Maintenance contracts (e.g. furnace cleaning, snow removal, lawn care, and pool cleaning)
- Financing costs
- Curtains and draperies