Home Renovation Tax Credit (HRTC)

Only available for the 2009 tax year

Under proposed changes, you can claim a non-refundable tax credit on your 2009 income tax return based on eligible expenditures incurred for work performed or goods acquired after January 27, 2009, and before February 1, 2010, in respect of an eligible dwelling. The Home Renovation Tax Credit (HRTC) applies to eligible expenditures of more than $1,000, but not more than $10,000, resulting in a maximum credit of $1,350 [($10,000 - $1000) x 15%].

Eligibility

In determining whether you are eligible to claim the Home Renovation Tax Credit (HRTC), you will need to take the following factors into account:

·         Your dwelling must qualify. Generally, any dwelling that you own and is used personally by you or your family can qualify, including your home or cottage.

·         Eligibility for the HRTC is family based. A family will be allowed a single credit that may be shared within the family.

·         To be eligible, expenditures incurred in relation to a renovation or alteration to an eligible dwelling (or the land that forms part of the eligible dwelling) must be of an enduring nature and integral to the dwelling.

·         The expenditures must have been incurred after January 27, 2009 and before February 1, 2010, according to an agreement entered into after January 27, 2009.

All expenses must be supported by receipts, so keep them in case CRA asks to see them.

Note

Some businesses or individuals may assert that certain items qualify for the HRTC. It is important to remember that the individual taxpayer making the claim on their tax return is responsible for ensuring that all eligibility requirements are met.

Non-refundable tax credit

As with all non-refundable tax credits, the HRTC will reduce your federal income tax. If, however, the total of all your non-refundable tax credits is more than your federal income tax, you will not receive a refund for the difference.