Home Renovation Tax Credit - HRTC
Home renovations are smart investments in the long term value of a home and can also reduce energy consumption and the long-term cost of owning a home. The HRTC can be claimed for renovations and enduring alterations to a dwelling, or the land on which it sits.
The 15-per-cent credit may be claimed on the portion of eligible expenditures exceeding $1,000, but not more than $10,000, meaning that the maximum tax credit that can be received is $1,350. The credit can be claimed on eligible expenditures incurred on one or more of an individual’s eligible dwellings including houses, cottages and condominium units that are owned for personal use.
Renovation costs for projects such as finishing a basement or re-modeling a kitchen will be eligible for the credit, along with associated expenses such as building permits, professional services, equipment rentals and incidental expenses.
Taxpayers can claim the HRTC when filing their 2009 tax return. Examples of HRTC eligible expenditures are: renovating a kitchen, bathroom, or basement, new carpet 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, resurfacing a driveway, laying new sod.
For further information on eligibility check with your tax professional, accountant or directly with Canada Revenue Website at http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhmrnvtn-eng.html