Home Improvement Tax Credit Canada
An economic stimulus measure that was passed in the 2009 Federal Budget is a Home Improvement Tax Credit called the
Home Renovation Tax Credit (HRTC)
. It is a temporary facility. It has been introduced to encourage the investment Canada Housing.
Timing and Valuation:
The Home Renovation (Improvement) Tax Credit is valid only for home improvement expenditure between January 27, 2009 and February 1, 2010. Tax Credit of 15% can be claimed on basis of home renovating expenses between
$1000 and $10000
. The minimum tax credit is $1350
Who can Apply for a Tax Credit?
The eligibility for this tax credit is based on the family size. For getting the tax credit, a family should consist of a minimum of the individual and the individual’s spouse. The tax credit can be shared by the family.
Home Improvements Covered for Tax Credit:
The tax credit facility can be taken for renovations and alterations. Eligible places include houses, cottages or condos that are used personally.
Other similar expenses like building permits, renting equipments, etc are also covered under tax credit.
Few examples of home improvements that are eligible for tax credit:
-Kitchen or Bathroom renovations.
-Painting-inside or outside the house.
-Laying new surface on driveway.
-Installation of a new furnace or heater.
Home Improvements Not Covered for Tax Credit:
Things that require regular maintenance do not qualify for tax credit.
Examples of home improvements that are no eligible for tax credit.
-Equipments for Construction.
-Carpet Cleaners and other things that require routine maintenance.
Claiming Tax Credit:
You can claim the tax credit when you file your Canada income tax returns for the year 2009.