2009 Canada Home Renovation Tax Credit

In the January 2009 federal budget, a home renovation tax credit program of 15 percent was announced to encourage homeowners to invest in their personal residences. There are several restrictions you should be aware of:

• All work must be completed between February 2009 and February 2010
• There is a $1000 minimum and $10,000 maximum eligibility
• The calculation is 15% times the dollar amount between $1000 and $10,000 (maximum eligible credit is 15% of $9,000 or $1350)
• The tax credit will be applied on your 2010 income tax return for the 2009 tax year
• Cabinetry, electrical and plumbing work related to kitchen and bathroom renovations are included
• Income producing renovations are exempt (you can't apply the tax credit to a basement suite renovation)
• Appliances and electronics are exempt

Studies have shown kitchen and bathroom renovations add enjoyment and increased value to real estate investments. The home renovation tax credit gives you a unique opportunity to save 15% on your kitchen or bathroom remodel. Contact us to see how we can help you realize the maximum tax credit of $1350.

Please make sure to read the CRA documents for full information about the home renovation tax credit program.