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March 29, 2009

Spring renos buoyed by tax credit, incentives

Thinking of renovating your home? Now’s a great time to do it, with the federal government offering significant incentives for home renovation projects – including energy-saving upgrades.

The Home Renovation Tax Credit

The federal government’s January 2009 budget includes a Home Renovation Tax Credit good for the next year only, until February 1, 2010.

If you are planning to do any of the following, you can claim a portion of your costs back as a tax savings on your 2009 tax return:

• remodel your kitchen or bathroom;
• paint your house inside or out;
• replace your inefficient windows, heating or air conditioning system;
• upgrade your insulation:
• complete any other eligible home-improvement projects.

The tax credit applies to home improvement projects over $1,000 and covers both parts and labour – in other words, both your new energy-efficient heating system and the electrician you hire to install it – as well as building permits and equipment rentals. A project (or projects) worth $10,000 or more will receive the maximum allowable tax credit of $1,350, or 13.5 per cent.

Visit the federal budget site's Home Renovation Tax Credit page for more information.

Home efficiency upgrade incentives