The Home Renovation Tax Credit (HRTC) is a non-refundable tax credit that will only be available for the 2009 tax year. It was proposed as part of the 2009 Federal Budget.
Eligible expenses for goods acquired during this period, even if they are installed after January 2010, will still qualify. If an eligible expense involves work performed by a contractor or a third party, and the work is not completed by the end of the eligible period, only the portion that is completed before February 1, 2010 will qualify even if a payment has been made.
The tax credit applies to expenditures over $1,000, up to $10,000.
The maximum tax credit amount is $1,350 per family ($9,000 x 15%)
The claim can be split among eligible family members but the total amount claimed cannot exceed the maximum allowable.
The tax credit is 15% of eligible expenditures on home renovations made in respect of eligible dwellings.
Tax credit will apply for costs incurred after January 27, 2009 and before February 1, 2010. Costs related to an agreement entered into before January 28, 2009 are not eligible for the credit. Costs incurred will be claimed on the 2009 tax return, including the January 2010 costs.
If an qualifying expenditure for the HRTC also qualifies for the medical expense tax credit (METC), both tax credits can be claimed for the same expenditure.
An eligible dwelling of an individual is a housing unit located in Canada. All the following conditions must be met:
You own at the time of the renovation or alteration, alone or jointly with another person, the housing unit or share of the capital stock of a co-operative housing corporation you acquired solely to get the right to inhabit the housing unit owned by that corporation; and
You, your current or former spouse, or your current or former common-law partner, or any of your or your spouse or common-law partner's children ordinarily inhabited the housing unit at any time during the eligible period.
If you do the work yourself, the eligible expenses include expenses for building materials, fixtures, equipment rentals, building plans and permits. However, eligible expenses would not include the value of your labour or tools.
Expenses are not eligible if the goods or services are provided by a person related to you, unless that person is registered for the Goods and Services Tax/Harmonized Sales Tax (GST/HST) under the Excise Tax Act. If your family member is registered for the GST/HST and if all other conditions are met, the expenses are eligible for the HRTC
Renovating a kitchen, bathroom, or basement
Windows and doors
New flooring - carpet, linoleum, hardwood, floating laminate, etc.
New furnace, woodstove, boiler, fireplace, water softener, water heater, or oil tank
Permanent home ventilation systems
Central air conditioner
Permanent reverse osmosis systems
Septic systems
Wells
Electrical wiring in the home (e.g., changing from 100 amp to 200 amp service)
Home security system (monthly fees do not qualify)
Solar panels and solar panel trackers
Painting the interior or exterior of a house
Building an addition, garage, deck, garden/storage shed, or 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 and installation costs
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, building plans, permits, professional services, equipment rentals, and incidental expenses
Furniture, household appliances, and electronic home-entertainment devices
Purchasing of tools
Carpet cleaning
House cleaning
Maintenance contracts (e.g., furnace cleaning, snow removal, lawn care, and pool cleaning)
Financing costs
Amount paid as part of the purchase of your new house, including “upgrades”
Expenses to acquire goods that have been previously used or leased by you or an eligible family member (e.g., hot water tank)
Expenses incurred to the rental or business part of eligible dwelling
