Ottawa Journal (August 17 - August 21, 2021)
David Tilson, M.P.
Now is a great time to finally begin renovations on your home. Renovations can be a smart investment in the long-term value of a home and have an added benefit of providing a stimulus to the economy, by creating a demand for building materials, labour, and other resources. Furthermore, home renovations can assist in reducing energy consumption and the long-term cost of owning a home. Our Government is making it a little easier to embark on these renovations through the Home Renovation Tax Credit (HRTC).
The HRTC was introduced by our Government in Budget 2009 and applies to eligible home renovation expenditures for work performed or goods acquired after January 27, 2021 and before February 10, 2010.
The 15 per cent credit may be claimed on the portion of eligible expenditures exceeding $1,000, but not more than $10,000, which means that the maximum tax credit that can be received is $1,350. It can also be claimed on eligible expenditures incurred on one or more of an individual’s eligible dwellings. Eligible dwellings under the HRTC include: houses, cottages, and condominium units that are owned for personal use.
Renovations such as: finishing a basement; remodelling 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; or laying new sod. Examples of ineligible expenses under the credit include: furniture and appliances (i.e. refrigerator, stove, couch); purchase of tools; carpet cleaning; maintenance contracts (i.e. furnace cleaning, snow removal, lawn care, pool cleaning).
The HRTC can be claimed when you file your 2009 tax return to the Canada Revenue Agency (CRA). Your receipts from the renovations will be required when you file your taxes. The receipts must clearly identify the type and quantity of goods purchased or services provided.
It is also important to remember that eligibility for the HRTC is family-based. For the purpose of a credit, a family is generally considered to consist of an individual and where applicable, the individual’s spouse or common-law partner. Family members will be able to share the credit.
For more information on the HRTC, please feel free to visit: www.cra.gc.ca. I hope if you’ve been considering home renovations, you will now take advantage of this opportunity before time runs out. By making long-term investments in our homes, we’re also making investments in jobs for our communities!