Copp's Buildall - Canadian Owned and Operated Since 1877

Copp's Home Renovation Tax Credit Top Up!

The recently announced federal budget provides a useful credit for homeowners – the HRTC. See below on how you can cash in.

How The HRTC Will Work

The HRTC will provide a temporary 15% income tax credit on eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010, pursuant to agreements enter into after January 27, 2009. The credit may be claimed for the 2009 tax year on the portion of eligible expenditures exceeding $1,000, but not more than $10,000, and will provide up to $1,350 in tax relief.

Expenditures Eligible For The HRTC

The HRTC may be claimed for renovations and alterations to a dwelling or the land on which it sits that are enduring in nature. For example, homeowners will be able to claim expenditures for major renovation projects such as finishing a basement, renovating a kitchen, or building and addition. Costs associated with such projects will be eligible for the credit, including permits, professional services, equipment rentals and incidental expenses.

Routine repairs and maintenance normally performed on an annual or more frequent basis (e.g. cleaning, lawn fertilization, and snow removal) will not qualify for the credit. The cost of purchasing furniture, appliances, audiovisual electronics and construction equipment will not be eligible.

Individuals will need to keep receipts for expenditures, and may claim the HRTC when filing their income tax returns for 2009.

Examples of HRTC-Eligible and Ineligible Expenditures

Eligible	Ineligible
Renovating a kitchen, bathroom or basement	Purchase of furniture and appliances (e.g. refrigerator, stove, and couch)
New carpet or hardwood floors	Purchase of tools
Building an addition, deck, fence or retaining wall	Carpet cleaning
A new furnace or water heater	Maintenance contracts (e.g. furnace cleaning, snow removal, lawn care, and pool cleaning)
Painting the interior or exterior of a house
Resurfacing a driveway
Laying new sod

The information contained here has been obtained from budget documents published by the federal government and is being provided for the convenience of our customers. The above sets out our understanding of the HRTC and is not meant to be relied on or taken as tax or legal advice. To ensure the accuracy of this information and its application to you, please review the documentation published by the government. If you require further information, please obtain from your own financial advisors. All of this information is subject to any changes that may be made by the government of Canada.