Home Renovation Tax Credit

Save up to $1,350 on home improvements

purchased before Februar y 1, 2010.

1-877-959-1-CRA

Under proposed changes, the HRTC is a non-refundable tax credit

based on eligible expenditures incurred for work performed, or

goods acquired, after January 27, 2009, and before February 1, 2010,

under an agreement entered into after January 27, 2009.The HRTC

can be claimed when filing your 2009 tax return.

The HRTC can be claimed for renovations and alterations of an enduring

nature and that are integral to the eligible dwelling (such as your home

or cottage) or the land that forms part of the eligible dwelling.

The 15% non-refundable tax credit can be claimed on eligible

expenditures of more than $1,000 but not more than $10,000.

The maximum tax credit that can be claimed to reduce your federal

income tax is $1,350. However, if the total of your non-refundable tax

credits is more than your federal income tax, you have no federal

income tax to pay, and you will not receive a refund for the HRTC.

William and his spouse Marie pay $5,000 to purchase an energyefficient

furnace for their home and $3,500 to build a deck at their

cottage.They also decide to have the area around the deck

landscaped for $2,500, bringing their total costs to $11,000

($5,000 + $3,500 + $2,500). Marie claims expenses of $9,000

($10,000 – $1,000), resulting in an HRTC of $1,350.

William and Marie may also be eligible for the ecoENERGY

Retrofit – Homes grant. For more information about the

ecoENERGY program, visit www.ecoaction.gc.ca.

Important things to remember

You do not have to submit your supporting documents with your

income tax and benefit return; however, you must ensure this

information is available should the Canada Revenue Agency request it.

To avoid problems with your HRTC claim, make sure you:

Important things to remember

You do not have to submit your supporting documents with your

income tax and benefit return; however, you must ensure this

information is available should the Canada Revenue Agency request it.

To avoid problems with your HRTC claim, make sure you:

get your contracts in writing (www.hiringacontractor.com); and
keep your receipts.

Eligible expenses must be of an enduring nature and be integral to the eligible dwelling.The cost of routine repairs, maintenance, and expenditures not integral to the dwelling are not eligible.

Examples of eligible expenses

Renovating a kitchen, bathroom, or basement
New windows, doors, or flooring
Building an addition, garage, deck, shed, or fence
A new furnace, woodstove, fireplace, water softener, or water heater
A new driveway or resurfacing a driveway, re-shingling a roof, or painting of a house
Landscaping – new sod, perennial shrubs and flowers, trees, etc.
Swimming pools (permanent – in-ground and above-ground)
Fixtures – blinds, shades, shutters, awnings, lights, fans, etc.
Associated costs such as permits, professional services, equipment
rentals, and incidental expenses

Examples of non-eligible expenses

Furniture, appliances, tools, and audio and visual electronics
Routine repairs, maintenance and cleaning (e.g., furnace cleaning, snow removal, lawn care, pool cleaning, house cleaning)

Financing costs

Where can I get more information?

For more information, go to www.cra.gc.ca/hrtc
or call us at 1-877-959-1-CRA.

The Home Renovation Tax Credit is subject to Parliamentary approval.