Home Renovation Tax Credit

Home Renovation Tax Credits

The Minister of Finance Jim Flaherty confirmed that the tax credit for home improvement will not be renewed in 2010.
For Quebec, the tax credit expired as scheduled on Dec. 31, 2009.
If you have renovated, your Fenplast, ENERGY STAR qualified, windows and doors, this can probably make you eligible for financial assistance.

To apply for these credits:
On the federal side, you will need to complete Schedule 12 of the federal return. The expenses total will be reported at line 368 of annex 1.
In Quebec, you must complete Form TP-1029-RR, already available on the Internet.

You'll find below, all the information that we placed on our site during the year 2009:

If you thinking of renovating, you may be eligible for financial assistance if you are using Fenplast ENERGY STAR-certified doors and windows.

In fact, in January both levels of government announced renovation tax credits for home owners in order to stimulate the economy. In general, the federal plan can apply to either the work carried out or to the costs of materials, whereas, for the Quebec plan, the bill must include the installation of materials by a qualified contractor. Note: in both cases, work can be cumulative. In other words, if you have your windows replaced by Contractor A, and your roof by Contractor B, all work will be taken into consideration when establishing this credit.

Please ask your accountant about whether your renovations are eligible, and, if so, for how much. The contents in this text are strictly for information purposes.

In brief,

At the federal level:

The credit will be based on eligible expenditures for work performed or goods acquired before February 1, 2010 (and after January 27, 2009).

This credit can be requested for eligible expenses of more than $1,000, but not exceeding $10,000 (limiting federal assistance to $1,350).

The tax credit can be applied to a secondary residence or another domicile property. The tax credit is not refundable.

Before home owners and buyers, local employees for construction companies and construction material stores can benefit from these new initiatives, Parliament must adopt the 2009-2010 federal budget.

At the provincial level:

A qualified contractor must be hired to carry out the work under the terms of an agreement entered before January 1, 2010 (and after December 31, 2008).

Expenses must be greater than $7,500 and only the excess (above $7,500) is eligible for a tax credit of 20%, up to a maximum of $20,000 (limiting government assistance to $2,500).

Owners of a single-family home, duplex, triplex, mobile home or condominium can take advantage of the tax credit. Secondary residences are not eligible.

The expenses incurred to carry out the work must be paid no later than June 30, 2010.

For more information on eligible work and the application process, please refer to the following document:

Government of Canada

Government of Quebec

Some example of 2009 Renovation Tax Credits
Calculator

Renovation Expenses	Federal Credit	Quebec Credit	Total credits
1 000 $	0 $	0 $	0 $	0.0 %
5 000 $	600 $	0 $	600 $	12.0 %
7 500 $	975 $	0 $	975 $	13.0 %
10 000 $	1 350 $	500 $	1 850 $	18.5 %
15 000 $	1 350 $	1 500 $	2 850 $	19.0 %
20 000 $	1 350 $	2 500 $	3 850 $	19.25 %

Note: We assume that expenses are admissibles at Federal and Quebec levels.

Updates:

February 2, 2009 - We heard of an interpretation whereby the federal credit would reduce the eligible Quebec amount by as much. Check with your accountant.

February 19, 2009 - The GST and QST paid on eligible goods and services are included in the federal and provincial tax credit calculations—La Presse, February 18, 2009.