Home Renovation Tax Credit

HOME RENOVATION TAX CREDIT
 
Homeowners doing renovations/improvements to their homes between 27 Jan '09 and 1 Feb 2010 will be eligible for up to a $1350 tax credit on this years tax return. (Announced in the Federal budget)
 
According to the Dept. of Finance web home page the following are eligible projects:
*renovating a kitchen, bathroom or basement:
*installing new carpets or hardwood floors:
*building an addition, deck, fence or retaining wall:
*buying a new furnace or water heater:
*painting interior or exterior of home:
*resurfacing a driveway:
*laying new sod.
Ineligible purchases are:
*furniture and appliances, (fridge, stove, couch)
*tools:
*carpet cleaning:
*maintenance contracts, (furnace cleaning, snow removal, lawn care, etc.)
 
Examples:
A couple decide to replace old windows and improve the insulation in their home. They spend $10,000.00. Since the tax credit only applies after the first thousand dollars, and goes to a maximum of $10,000.00, this couple can claim 15% of $9,000.00 for a total of $1350.00.
 
Another couple purchase a high efficiency furnace, build a deck, and have landscaping done for a total cost of $11,000.00.  They claim the maximum credit on $9,000.00 of $1350.00.
 
Sisters renovate their kitchen condo, each spending $7500.00. Each claim a tax credit of $975.00. (15% of $6500)
 
This article supplied by Stephen Woodworth, Member of Parliament for Kitchener Centre