If you’re planning on doing upgrades on your home or cottage, by purchasing the supplies and/or labour for the project before February 1, 2010, you can participate in the federal home renovation tax credit.
The home renovation tax credit is for 15 per cent of the cost of your project, up to $1,350. To qualify, your project has to be more than $1,000 and the credit tops out at a $10,000 ceiling. Eligible expenses for goods acquired before the deadline, even if they are installed after January 2010, will still qualify. However, according to the Canada Revenue Agency, “If an eligible expense involves work performed by a contractor or a third party, and the work is not completed by the end of the eligible period, only the portion that is completed before February 1, 2010 will qualify even if a payment has been made.”
This is a non-refundable credit, which means it will reduce your taxes owing, but you don’t receive cash if you have a positive balance.
The Canada Revenue Agency website at www.cra-arc.gc.ca has full details.
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