Home Renovation Tax Credit

The HRTC will provide meaningful tax relief to help Canadian homeowners make improvements to their property while promoting economic activity.
The credit will apply only to the 2009 taxation year. Expenditures for work performed, or goods acquired, after January 27,2009 and before February 1,2010, will be elegible for the credit.

The credit will however, not be available in respect of expenditures for work performed or goods acquired in that period if the expenditure is made pursuant to an agreement entered into before January 28,2009. Individuals may claim this credit (including in respect of expenditures made in January 2010) in their 2009 tax returns.
While it is anticipated that in most cases one family member will claim the whole of the credit, any unused portion may be claimed by one or more of the other family members as a credit against that person’s tax otherwise payable.

The following expenditures will not be elegible for the credit

1. The cost of routine repairs and maintenence normally performed on an annual or more frequent basis.
2. Expenditures of appliances and audio-visual electronics.
3. Financing costs associated with a renovation.

Alterations or other items, such as furniture or draperies and other indirect expenditures for items that retain a value independent of the renovation, such a s the purchase of construction equipment (e.g. tools) will not be considered integral to the dwelling and therefore will not qualify for the credit.