New home renovation tax credits

New home renovation tax credits

They apply to eligible purchases made during the year 2009 for improvements to your house, condo or cottage.

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The home renovation tax credits are based on eligible expenses for improvements to your house, condo or cottage. They can be claimed on your 2009 income tax return.

Eligible expenses are those incurred in relation to home improvement and renovation and include the cost of labour, professional services, building materials and equipment rental. Ineligible expenses include, among other things, the cost of maintenance and repairs performed on a regular basis (e.g. snow removal), the purchase of tools and household appliances, renovation financing costs, etc.

The criteria regarding eligible expenses vary slightly for the federal credit and the provincial credit.
For more information, consult our income tax specialists and, in the meantime, keep all your bills and other supporting documents that may be requested for auditing purposes.

The federal Home Renovation Tax Credit (HRTC) applies to eligible expenses of more than $1,000, but not more than $10,000, resulting in a maximum non-refundable tax credit of $1,350. It applies to eligible expenses incurred between January 27, 2009, and February 1, 2010.

In the case of the provincial Tax credit for home improvement and renovation, the refundable tax credit is equal to 20% of eligible expenses in excess of $7,500. The maximum amount of eligible expenses is $20,000 for a maximum credit of $2,500. It applies to eligible expenses incurred between December 31, 2008, and January 1, 2010.

Eligibility for the home renovation tax credits is family-based. A family made up of an individual or an individual and his or her spouse or common-law partner, including children less than 18 years of age at the end of 2009, is eligible for the credits. The unused portion of the credits may be shared between the family members.

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