Home renovation tax credit

Federal Provincial Rate (1) 12,525% 20% Refundable No Yes Minimum limit of expenses 1 000 $ 7 500 $ Maximum limit of expenses 10 000 $ 20 000 $ Maximum credit 1 127,25 $ 2 500 $ Period of eligibility Work must be done between January 27, 2009 and February 1, 2010 A renovation contract for the work that is to be done must be signed in 2009 and the expenses must be paid by July 2010. Eligible dwellings No restrictions as to date of construction Must be the principal place of residence Any housing unit that qualifies as a principal residence Built before 2009 Principal place of residence eligible at any time during the credit eligibility period Only individual houses, prefabricated houses, permanently set up mobile homes, units in buildings held in divided co-ownership (condominiums) and residential duplex or triplex units are eligible. Individual units in housing cooperatives, vacation homes (if they are usually occupied) land development work, common areas in condominiums and housing cooperatives. Eligible Ineligible When to claim On your 2009 income tax return On your 2009 income tax return Eligible work Work involving renovations or alterations to an eligible dwelling that are permanent in nature Tax credit not limited to work done by a contractor Renovations done by the applicant are included. Renovation, modification, improvement, conversion or expansion of an individual's eligible residential unit, including the addition of structures adjoining or incidental to the unit (including some of the work done to restore the lot to its pre-renovation condition) Work to be done by a contractor under the terms of an agreement Renovations done by the applicant are not eligible. Eligible expenses Cost of labour (not limited to labour provided by contractors) Cost of goods connected to the renovation (not necessary to acquire goods or services from a contractor; if they are provided by a person related to the applicant, that person must be registered for the GST) Other costs may be eligible (for example, permits, equipment rental) Cost of labour provided by the contractor Cost of goods acquired from the contractor or a retail business registered for the QST No other types of expenses are eligible.

(1): The federal rate drops from 15% to 12.525% because of the federal tax abatement.

Examples of work Federal Provincial Renovating a kitchen, bathroom or basement, etc. Eligible Eligible Replacing floor covering Eligible Eligible Dividing rooms Eligible Eligible Replacing stairs Eligible Eligible Building an addition (solarium, deck, etc.) Eligible Eligible Building an adjacent structure (garage, shed, etc.) Eligible Eligible Replacing plumbing, heating systems, etc.) Eligible Eligible Installing a heat pump Eligible Eligible Installing a fireplace Eligible Eligible Insulating Eligible Eligible Replacing a roof, rainwater gutters (eaves troughs) or a chimney Eligible Eligible Replacing exterior siding Eligible Eligible Replacing doors, windows, shutters, etc. Eligible Eligible Replacing a deck, stoop, etc. Eligible Eligible Replacing a drain (agricultural, weeping bed, rainwater or foundation) Eligible Eligible Landscaping and driveway resurfacing Eligible Ineligible except to restore site following the completion of eligible work Repainting Eligible Ineligible Putting in a new lawn Eligible Ineligible Material for work done by the applicant Eligible Ineligible Building a fence or retaining wall Eligible Ineligible Work done exclusively as repairs or maintenance Ineligible Ineligible Installing household appliances Ineligible Ineligible

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