Effective Jan. 27, any Canadian who spends money on home renovations will be eligible to receive up to $1,350 in tax relief, thanks to the new Home Renovation Tax Credit proposed in the Government's Economic Action Plan.
"Each time a Canadian invests in home renovations, they are helping to create jobs in construction and building supplies in their own community," said the Honourable Lisa Raitt, Minister of Natural Resources Canada. "By providing an incentive for Canadians to invest in their homes, we are also encouraging them to invest in local jobs."
To highlight the kind of projects that will be eligible under this plan, the Minister visited a Victoria-area home renovation site and met with a local contractor who will be better able to protect and create jobs thanks to the additional home renovation projects that will be encouraged through this tax credit.
The Home Renovation Tax Credit will provide a one-year, temporary 15% income tax credit on eligible home renovation expenditures for work performed, or goods acquired, between January 27, 2009 and February 1, 2010. The credit may be claimed on eligible expenditures exceeding $1,000 but not more than $10,000.
The Home Renovation Tax Credit is one of several initiatives designed to help homeowners and homebuyers contained within the Government's Economic Action Plan. Budget 2009 also announced $300 million over two years for homeowners looking to make their homes more energy efficient.
This government is taking steps to help Canadians control their energy costs and keep more money in their pockets. Minister Raitt also announced today the Government of Canada has reintroduced legislation to modernize the Energy Efficiency Act, and has made a series of improvements to Canada's Energy Efficiency Regulations. By 2010, the regulatory changes alone will allow Canadians to save $530 million in energy costs.
Before homeowners, homebuyers, and local construction and building supply workers can benefit from these new initiatives, Parliament must pass the 2009-2010 Federal Budget.