| The Canadian government revealed on January 27th, | | | | services, and equipment rentals are also eligible. |
| 2009 a temporary Home Renovation Tax Credit. This | | | | The cost of purchasing furniture, appliances, electronics, |
| renovation credit will apply to work done on houses, | | | | or construction equipment do not apply. Routine repairs |
| cottages and condominiums owned for personal use, | | | | and maintenance will also not be eligible for the credit. |
| and projects can range from finishing a basement to | | | | Remember that the Home Renovation Tax Credit can |
| remodeling a kitchen, to painting, to laying new sod. This | | | | be used in conjunction with other government |
| home renovation tax credit works as follows: | | | | renovation programs. For example, if you plan on |
| Homeowners can get a 15% tax credit of up to | | | | making your home more energy-efficient, you may |
| $1,350 for renovations that exceed $1,000 up to a | | | | qualify for grants of up to $5,000 under the |
| maximum of $10,000 worth of work or materials. The | | | | ecoENERGY Retrofit Program. In addition to this |
| renovations must take place and be completed | | | | $5,000 grant, you will still be able to claim these |
| between January 27, 2009 and January 31, 2010 to be | | | | renovations under the Home Renovation Tax Credit. |
| eligible for this credit. | | | | The same is true for eligible expenditures that are |
| Under this $3-billion program, you may choose to hire | | | | claimed under the Medical Expense Tax Credit. |
| a contractor or to do the work yourself. However, | | | | Here are some tips if you plan on hiring a contractor to |
| contractors must be registered for the GST so you | | | | do the renovations for you. Please make sure that |
| cannot hire friends or family members. The Canadian | | | | your contractor is licensed and ask them to show you |
| government estimates that over 4 million families will | | | | their license. Ask for references. A good contractor will |
| take advantage and benefit from this tax credit. | | | | be happy to provide you with a list of references as |
| The Home Renovation Tax Credit was created to | | | | well as pictures showing the type of work they have |
| encourage Canadians to spend now to help create | | | | done in the past. Get more than one quote and get |
| jobs in industries typically hurt by an economic | | | | them in writing. The quotes should outline exactly what |
| downturn. | | | | will be done and how long it will take. Just remember |
| "These measures to support home construction and | | | | that the lowest quote may not be the best. This |
| renovation will help stimulate our construction and | | | | contractor may be cutting corners. Ask to see the |
| building-supplies industries," Federal Finance Minister Jim | | | | contractor’s certificate of insurance. A standard |
| Flaherty said in his speech. | | | | insurance would cover worker compensation and |
| The tax credit will apply to a variety of home | | | | third-party liability for everyone on the job as well as |
| improvements, such as renovating a kitchen, bathroom | | | | damage they may cause. If the contractor does not |
| or basement, new carpet or hardwood floors, building | | | | have insurance, you may be held liable if case of an |
| an addition, deck, or fence, installing a new furnace, | | | | accident. |
| painting the inside or outside of a house, or laying new | | | | Happy 2009 renovations! |
| sod. Expenses such as building permits, professional | | | | |