New federal tax credits can help home renovations

The federal budget announced in January includes a home renovation tax credit of 15 per cent of the cost of your project, up to $1,350.

To qualify, your home improvement project has to be more than $1,000 and the credit tops out at a $10,000 ceiling. This is a non-refundable credit, which means it will reduce your taxes owing, but you don’t receive cash if you have a positive balance. Also, the materials and labour for the project need to be purchased before February 1, 2010.

If you go green with your home improvement, you can “double dip” – the renovation credit can be claimed on projects that also qualify for up to $5,000 with the federal ecoEnergy Retrofit Program.

Brad Compton
Mortgage Consultant, Invis Inc
phn: 416-671-2183
www.YourLowMortgage.ca