Effective January 27, 09 through Jan. 31, 2010, Canadian homeowners can claim a 15-per-cent tax credit against spending of more than $1,000 and capped at $10,000, with a maximum credit of $1,350. By comparison, the personal income-tax measures in the 2009 budget would amount to one-year savings of $483 for a two-earner family with two kids and income of $150,000.
The best thing about the Home Renovation Tax Credit is that it can be coupled with other government programs. For instance, making your home more energy-efficient can qualify you for grants of up to $5,000 under the ecoENERGY Retrofit Program and you will still be able to claim the Home Renovation Tax Credit.
The tax credit would apply to a variety of home improvements, such as renovating a kitchen, bathroom or basement, new carpet or hardwood floors, building an addition, deck, or fence, installing a new furnace, painting the inside or outside of a house, or laying new sod.
Expenses such as building permits, professional services, and equipment rentals are also eligible. Routine repairs, maintenance and purchasing furniture, appliances, electronics, or construction equipment will not qualify for the credit.
Houses, cottages and condominium units owned for personal use are eligible.
The government estimated the total value of the tax credit at about $3 billion, and expects about 4.6 million families to benefit.
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