Canadian
Government Gives $1350 Tax Rebate for Renovations
In response to the sinking economy the
Canadian government has implemented dozens
of programs intended to pump $63 billion
into the Canadian economy. By doing this
they hope to stave off a long period of
recession. The problem with most revenue
distribution methods is that the majority
of this money takes a long time to filter
its way down to the homeowner. However,
for a more immediate effect the government
is offering a $1350 tax rebate directly
to homeowners that can be used for renovations.
This will include all types of projects
from landscaping right up to roofing.
The Home Renovation Tax Credit (HRTC) will
let homeowners deduct 15% of their home
renovations up to $1350 in the form of a
tax credit for their Canadian income tax
returns until February 10, 2010. The wording
of the budget states that, “The HRTC
will provide a temporary incentive for Canadians
to undertake new renovation projects or
accelerate planned future projects thus
providing a timely stimulus to the Canadian
economy while boosting energy efficiency
and the value of Canadian housing stock.”
The report went on to say that this program
is to take place immediately.
For more information on how you can take
advantage of The Home Renovation Tax Credit
(HRTC) simply contact
us.
In real numbers the government expects
that 4.6 million families will reap about
$3 billion in combined tax relief. These
taxpayers can claim renovation costs of
over $1,000 and not more than $10,000 on
their 2009 tax return. And the best part
is that the process is geared to clear as
much red tape as possible meaning that the
money will go directly to the homeowners
and not through intermediaries. The homeowner
simply applies for the tax credit on their
2009 tax return but, understandably, has
to have the receipts to show for the work.
Programs for energy rebates are still in
effect from before and will have to include
an audit from an energy expert provided
by the government. This means that the home
will be subjected to complete inspections
beforehand and after the work has been completed
to evaluate the increase in efficiency.
Actually this is a continuation of a similar
government program for energy efficiency
put in place in 2007 that included rebates
for items such as windows, heat sources
and insulation. The new HRTC program widens
this to include all renovation projects
in both homes and vacation properties.
The real effect on the economy can be measured
almost immediately because renovations,
both large and small, require supplies and
labour. This means that faltering lumber
mills and unemployed construction workers
will benefit as homeowners take projects
off the shelf and put them into the renovation
process. These include renovating bathrooms,
kitchens or basements and installing new
items such as flooring, heating systems
and driveways. It also hits at the underground
economy of cash payments by requiring that
receipts be show to claim the rebate
The exclusions to this program are home
maintenance and new furniture, appliances,
tools, carpet cleaning, landscape maintenance
and snow removal. Only projects that provide
a lasting benefit for the home will be considered.
For more information on how you can take
advantage of The Home Renovation Tax Credit
(HRTC) simply contact
us.
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