Clock is Ticking on Home Renovation Tax Credit

By Brian Schultz

Time is running out for your home renovations to be claimed under the Home Renovation Tax Credit (HRTC), which went into effect early last year.

To qualify, you must have work performed/made purchases after January 27, 2009 and before February 1, 2010. You must also spend at least $1,000 and a maximum of $10,000. Revenue Canada says they will honour your purchases even if they are installed after January 2010.

Spending the maximum allowed amount will get you $1,350 return.

Some of the eligible expenses you can claim include renovating a kitchen, bathroom, or basement, installing new windows and doors, or re-shingling a roof, for example. Purchasing household electronics and furniture does not fall under the acceptable items that can be claimed.

The federal government introduced the HRTC as a way of stimulating the economy at the beginning of the recession. There is talk about extending it, but no official decision has been made on when that will be, or for how long.

Image credit: Flickr/natedigby