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Home Renovations Tax Credit. (HRTC)
Last night MPs approved the federal budget. Contained within this budget is a provision for a tax credit for home improvements that are of "an enduring nature and integral to the dwelling".
A purchase of a new furnace has been given as an example of eligible expenditure. The status of hearth products, built in outdoor kitchens and outdoor rooms has as yet not been clarified. HPBAC has contacted the department of Finance in Ottawa and has been informed that the final list of eligible expenditure will not be available for some time yet. They will start work on it once the budget has received royal assent.
HPBAC expects hearth products and outdoor rooms etc to be eligible and if necessary will lobby for their inclusion. Nevertheless it is not guaranteed at this point.
The applicable tax credit is 15% for expenditure between $1000 and $10,000. The maximum available is therefore $1,350. Labour and professional fees, permits and building materials are all eligible. The credit will be claimed through the homeowners 2009 Tax Return.
They must keep all paperwork pertaining to their purchase.
HPBAC will keep members informed as to developments. Please feel free to contact me if you have any questions. In the meantime I would refer you to the following government web site for a more detailed description of how the program works:
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