Canada Offers Tax Credit, Too?

© 2009 Door & Access Systems
Publish Date: Spring 2009
Author: Tom Wadsworth
Page 45

Canada Offers Tax Credit, Too?
By Tom Wadsworth, Editor
Canada has enacted the 2009 Home Renovation Tax Credit (HRTC), a stimulus legislation that offers tax credits for eligible home improvements.

In February, the government was not ready to confirm whether those improvements include garage doors. But the prognosis looks good.

Key details:

• The HRTC applies to eligible home renovation expenditures for work performed or goods acquired after Jan. 27, 2009, and before Feb. 1, 2010.
• The 15 percent credit may be claimed on the portion of eligible expenditures exceeding $1,000, but not more than $10,000. Thus, the maximum tax credit that can be received is $1,350 ($9,000 x .15).
• Properties eligible include houses, cottages, and condominium units that are owned for personal use.
• Eligible costs include the cost of labor and professional services, building materials, fixtures, rentals, and permits.
• Eligible renovations do not necessarily need to increase energy efficiency. Projects such as adding a deck, a fence, or a new driveway are all eligible.
  Taxpayers claim the HRTC when filing their 2009 tax returns.
• Routine repairs and maintenance do not qualify for the credit.
• The costs of purchasing furniture, appliances, audiovisual electronics, or construction equipment do not qualify.

   

Additional information on the Home Renovation Tax Credit will soon be available on Canada Revenue Agency’s Web site at (www.cra-arc.gc.ca). Inquiries can also be made to Service Canada at 1-800-O-Canada (622-6232).