Are you planning on renovating your house?

Are you planning home construction or renovation in response to the measures passed by Mme Monique Jérôme-Forget, Minister of Finance and Minister responsible for Infrastructure? Due to the economic crisis, the minister decided to introduce a refundable tax credit for the year of 2009 of up to $2,500 for home construction and renovation.

The canadian Minister of Finance, Jim Flaherty, announced in the 2009 budget, measures to stimulated housing construction with a renovation tax credit providing. The Home Renovation Tax Credit will be eligible on 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 no more than $10,000.

The minister also provided a non-refundable tax credit for the building of a new house. This is a $ 5 000 credit for house buy after January 27, 2009, will give to the proprietors the opportunity to obtain a fiscal help almost to $ 750.

Major home improvement and renovation work recognized or not recognized for the purposes of the provincial tax credit :

Examples of recognized work

• Expansion of a house built before 2009 (addition to the house, construction of a canopy, solarium, patio, balcony).
• Finishing a basement, attic, garage.
• Renovation of a kitchen, bathroom, washroom.
• Construction of annexed or secondary buildings at a home constructed before 2009 (garage, shed...).
• Replacement of a staircase, a terrace, etc.

Examples of work not recognized

• Erecting or repairing a fence, low wall
• Installation of a swimming pool, sauna, hot tub.
• Landscaping, other than to restore the lot to its condition prior to the recognized work
• Work aimed exclusively at repairs (repairing a leak, a door, etc) or maintenance (application of paint to walls solely to spruce up the appearance)
• Construction of outdoor play equipment

Source: Economic statement by the Minister of Finance and Minister responsible for Infrastructure, Monique Jérôme-Forget.

Major home improvement and renovation work recognized or not recognized for the purposes of the federal tax credit

Examples of recognized work

• Renovation of a kitchen, bathroom, washroom.
• New carpet or hardwood floors
• Building an addition, deck, fence or retaining wall
• Painting the interior or exterior of a house
• Laying new sod

Examples of work not recognized

• Purchase of furniture and appliances (e.g. refrigerator, stove, and couch)
• Purchase of tools
• Carpet cleaning
• Maintenance contracts (e.g. furnace cleaning, snow removal, lawn care, and pool cleaning)

Source : Canada's Economic Action Plan – Budget 2009

Value of the tax credit depending on eligible expenditures

Source : Economic statement by the Minister of Finance and Minister responsible for Infrastructure, Monique Jérôme-Forget. Canada's Economic Action Plan – Budget 2009.

Planimage offers plans for renovation and outside projects!

Consult the experts at Planimage with your projects; they provide ideas, advice, solutions and plans to meet your needs.

Send us a picture or rough sketch of your house and they will produce a detailed plan of your renovation project.

Moreover, we can create a colour rendering of your project so you can visualize the changes that will be made to your home.

Did you know that Rona and Réno-Dépôt are offering, on top of the tax credit for renovations that is accessible through the Government of Quebec, a gift card worth 10% of what you buy? For more information, visit us in store, or at www.rona.ca.

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