Home Renovation Tax Credit (HRTC) The Home Renovation Tax Credit is a non-refundable tax credit for work performed or goods acquired in respect of an eligible dwelling.  An eligible dwelling is a housing unit that is eligible to be an individual’s principal residence at the time the expense was incurred.   

The tax credit will be calculated as 15% of eligible expenditures incurred between $1,000 and $10,000 during the period of January 27, 2009 and February 1, 2010. The maximum credit available will be $1,350 ($9,000 x 15%).   

Eligibility for the HRTC will be family based.  A family will generally be considered to consist of an individual or an individual and his or her spouse or common law partner including children who will be under the age of 18 years of age at the end of 2009.  A family will be allowed a single credit that may be shared within the family.  If two or more families share the ownership of an eligible dwelling, each family will be eligible for their own separate credit, each up to $1,350. 

To be eligible, an expenditure has to be incurred in relation to a renovation or alteration to an eligible dwelling (or the land that forms part of the eligible dwelling) and must be an enduring change which is integral to the dwelling.  This eligible expenditure will include the cost of labour and professional services, building materials, fixtures, rentals and permits.  All eligible expenditures must be supported by acceptable documentation. 

Documentation, such as agreements, invoices and receipts must clearly identify the type and quantity of goods purchased or services provided, including but not limited to the following:

• information that clearly identifies the vendor/contractor with business address and if applicable the GST registration number
• a description of the goods and the date when the goods were purchased
• the date that the goods were delivered (keep your delivery slip as proof) and/or when the work or services were performed
• a description of the work including the address of where the work was done
• proof of payment

Examples of eligible expenditures are:Renovation of a kitchen, bathroom or basement, purchase and installation of new carpets or hardwood flooring, building of an addition, deck or fence, the purchase of a new furnace, installation of a new driveway or the painting of an interior or exterior of a house. 

Examples of ineligible expenditures:The purchase of furniture, appliances, audio and visual equipment, curtains and draperies, or new tools, performing routine maintenance work such as cleaning your carpets or house cleaning and costs associated with financing any eligible renovations.