March 06, 2009

My Office has received many phone calls and questions from constituents about the new Home Renovation Tax Credit (HRTC) and I’d like to take the time to describe some of the details to you and I hope you will be able to take advantage of the credit this year. 

The HRTC is a non-refundable tax credit for work performed or goods acquired for renovations on an eligible dwelling.  An eligible dwelling is a housing unit that is an individual or family’s principal residence.

The credit will be based on eligible expenditures for work performed or goods acquired after January 27, 2009, and before February 1, 2010.  Expenditures incurred before January 28, 2009, will not be eligible for the credit. 

Eligibility for the HRTC is family based. A family will generally be considered to consist of an individual or an individual and his or her spouse or common-law partner, including children who will be under 18 years of age, at the end of 2009. A family will be allowed a single credit that may be shared within the family.  If two or more families share the ownership of an eligible dwelling, like a duplex, each family will be eligible for their own separate credit that will be calculated on their respective eligible expenditures.

The credit will only be available for the 2009 tax year and applies to eligible expenditures of more than $1,000, but not more than $10,000, resulting in a maximum credit of $1,350 ($9,000 x 15%). A new line will be incorporated in the 2009 personal income tax return to allow you to claim the credit.  Keep records of all of your receipts, invoices, delivery slips, bills and proof of purchases.

To be eligible, expenditures must be in relation to a renovation or alteration to an eligible dwelling or to the land that it is a part of.  The work must be of an enduring nature and integral to the dwelling.  The expenditures can include the cost of labour and professional services, building materials, fixtures, rentals, and permits.  If you are using a contractor he or she must have a GST registration number.

Examples of eligible expenditures are renovations on a kitchen, bathroom or basement, putting in a new carpet or hardwood floors, building an addition, deck, fence, buying a new furnace, pouring a new driveway or painting the interior or exterior of a house.

Ineligible expenditures are the cost of routine repairs and maintenance normally performed on an annual or more frequent basis.  Expenditures that are not integral to the dwelling and other indirect expenditures that retain a value independent of the renovation like expenditures for drapes, furniture, appliances, audio-visual electronics and financing costs.

For more information go to

Until next time. . .

Earl Dreeshen, MP
Red Deer