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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 tax credit for home renovations involves offering a temporary tax credit of 15% during the year for eligible home renovation expenses for work carried out or materials purchased between January 27, 2009, and February 1, 2010. 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:
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 renovation work must be done by qualified contractors. Expenses must be incurred before December 31, 2009. The tax credit is refundable.
For more information on eligible work and the application process, please refer to the following document:
2009 Renovation Tax Credits
| 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.
Update, 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.
Reprinted from Fenplast Web site
