More Ways to Claim Canadian Government Tax Grants
Canadian Federal and Provincial Government Incentives to Renovate
If you’ve thought about renovating your new home this year, the Canadian provincial and federal governments are ready to throw some incentives in.
Thinking about landscaping your yard, redoing a bathroom or installing hardwood flooring? For these and other home improvements, the Home Renovation Tax Credit (HRTC) will provide a one year 15 percent tax credit.
If you want to replace your furnace, install solar panels, install additional insulation or even replace drafty windows, the federal ecoENERGY program will provide rebates across a wide spectrum of energy efficient products and improvements, to a stated maximum of $5,000.
But wait, there’s more! The Ontario provincial government will also provide matching rebates under its Home Energy Retrofit program, so between these two programs, a homeowner is eligible to receive up to $10,000 in rebates.
Even better, you can dip twice and claim these energy efficient improvements under the HRTC program. This means that Ontario homeowners can receive up to $11,350 for a single home improvement project.
The Home Renovation Tax Credit
The HRTC provides a one year temporary 15 percent tax credit per family based on eligible home renovation expenditures for work conducted or materials acquired between January 27, 2009 and February 1, 2010. This tax credit on becomes viable after you spend $1,000 and no more than $10,000, which sets the maximum credit at $1,350.
There are a wide variety of projects that are eligible, such as kitchen, washroom and basement renovations, hardwood floors, carpet installation, heating system upgrades, water heater replacement, exterior or interior painting, driveway repairs, landscaping, decks, fences and even laying new sod.
But not everything is eligible, and this includes furniture and appliance purchases, cleaning of carpets, furnace or duct cleaning, removal of snow and pool maintenance.
EcoENERGY and Home Energy Retrofit Programs
While the HRTC applies to most home projects, the ecoENERGY and Ontario’s Home Energy Retrofit programs apply only to improvements related to energy efficiency.
Ontario’s program matches the ecoENERGY program by dollar up to $5,000 for a maximum of $10,000 for each household.
Some examples of improvements that qualify include adding or upgrading an energy efficient heating or cooling system, installing an instant hot water system, installing thermally efficient windows and insulation installation or replacement.
There is a downside to receiving this credit and that is because a homeowner must have an energy efficiency audit performed on their home. This is likely to cost anywhere between $300 and $500, but even so you may be able to receive a $150 rebate.
It is important that the energy audit be performed by an EnerCan licensed auditor. If you don’t verify this first, you will likely be unable to submit your bill for the potential rebate.
Any energy related improvements must be performed within 18 months after the audit is done, and the cut-off date is March 2011. Accordingly, the renovator must provide documentation related to improving energy efficiency.
Once performed a second energy audit is usually required (about $200, but no rebate) to confirm the work was performed properly. After this the grant application can be submitted and a federal rebate usually arrives within 90 days.
These Government Grants are for You!
This is your government, your money and you voted them into office. They are offering you some serious money. So why not take advantage of what they are providing.
After all, if you were already thinking about doing some renovations, why not get some of your money back from those that took it from you in the first place?
Video – The Canadian Federal and Provincial Tax Credits and Rebates
To learn more about these tax credits, go to:
Http://Cra-rc.gc.ca/gney/bdgt/2009/fqhmrnvtn-eng.htm
To find an energy auditor in your area or more info about rebates, visit: