News Release

Important Information Regarding the Federal Governments
Home Renovation Tax Credit

Release Date: 2009-01-04

The recently announced budget features a very useful credit for homeowners, the Home Renovation Tax Credit (HRTC). See below for the answer to some common questions on how the tax credit will apply if this budget passes. The information contained in this summary has been obtained from the budget documents published by the Federal government as well as additional sources and is being provided for the convenience of our customers. The following sets out our understanding of the HRTC and is not meant to be relied upon or taken as tax or legal advice. To ensure that accuracy of this information and its application to you, please review the documentation published by the Government and if you require further information, obtain it from your own financial advisor(s). In addition, all of this information is conditional upon the budget proposals being passed and is subject to any modifications that may be made by the Government.

What types of products, services and expenses will be eligible?

Renovating a kitchen, bathroom or basement
New carpet, tile 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
Laying new sod
Equipment rentals
Professional fees
Building materials
Fixtures
Building permits

What types of products, services and expenses will not be eligible?

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

How will the Home Renovation Tax Credit work?
Canadian homeowners can claim a fifteen (15) percent, non-refundable tax credit for eligible expenditures of more than $1,000, but not more than $10,000 – for a maximum credit of $1,350 ($9000 x 15%). Based on information currently available, it appears the HRTC applies to ‘do it for me’ and ‘do it yourself’ projects, and may be claimed in addition to support from the existing ecoENERGY retrofit program and any additional federal grant and/or tax credits the homeowner may qualify for. Taxpayers can claim the HRTC when filing their 2009 tax return.

When will the HRTC begin and end?
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.

Who is eligible to participate, and what are the conditions?
Family members (spouses or common-law partners and their children under 18) are subject to a single limit based on their pooled expenditures. The credit is only available for a dwelling that is eligible to be the family’s principle residence or those owned for personal use including cottages and condominium units (i.e., not rental properties). Renovation costs for projects 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.

What should consumers do?
Begin to save your receipts for any home improvement project that you are currently working on that qualify for the tax credit. Discuss your next project with us at St. Thomas Rent-All ( www.stthomasrentall.com ) we have got the equipment to assist you.
Additional information is available from the Department of Finance at: http://www.budget.gc.ca/2009/home-accueil-eng.asp