IF YOU’VE been planning a home renovation, but keep putting it off, this is the year to move forward. The home renovation tax credit announced last week offers a 15 per cent tax credit of up to $1,350 for eligible renovations to home or cottage.
In addition to major undertakings like a new kitchen or bathroom, the credit can also be applied to projects like a new furnace or water heater, or a resurfaced driveway. Items like new furniture, appliances or home electronics would not be covered.
The total cost has to be in excess of $1,000 and the credit tops out after $10,000 – the 15 per cent credit is applied to the amount between the $1,000 minimum and $10,000 ceiling, hence $1,350. It’s a non-refundable credit, which means it will reduce your taxes owing, but you don’t get the cash if you have a positive balance.
You can do the work yourself, or hire someone else. However, you can’t hire close friends or family members unless they have a GST number. Any member of the family can claim the tax credit, or it can be shared among family members. The materials and labour for the project must be purchased before Feb. 1, 2010.
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