Canada Revenue Agency

Canada Revenue Agency

July 13, 2009 10:00 ET

Home Renovation Tax Credit Helps Economy and Taxpayers

New ad campaign highlights ways you can put your tax dollars back into your home

JONQUIERE, QUEBEC--(Marketwire - July 13, 2009) - The Honourable Jean-Pierre Blackburn, Minister of National Revenue and Minister of State (Agriculture and Agri-Food) announces the official launch of a new national advertising campaign for the Home Renovation Tax Credit (HRTC), together with Michel Leclerc, Operations Director for Potvin et Bouchard stores.

"The Home Renovation Tax Credit is one of the key incentives introduced by the Conservative Government as part of its Economic Action Plan to provide a timely stimulus to the Canadian economy," said Minister Blackburn. "We want to ensure that Canadian homeowners know about this credit and take full advantage of it. This is why we are launching this national advertising campaign."

The advertising campaign includes advertising through television, select magazines, Internet, and digital screens. It is also complemented by a national partnership program, with point-of-sale HRTC displays in large national retail establishments where home renovation products are sold. By mid-August, these establishments and their affiliates should have HRTC information displays with envelopes that people will be able to use to keep their receipts and related documents to claim the credit.

"The HRTC is an important step made by the federal government in addressing the current economic situation and represents a crucial incentive for Canadian homeowners to invest now in their homes," said Mr. Leclerc. "Thanks to this tax incentive, as a retailer, I can offer complementary promotions that are more meaningful and timely for homeowners."

The HRTC is a time-limited, non-refundable tax credit of up to $1,350 that can be claimed for eligible expenditures made for renovations and alterations of an enduring nature made to a dwelling eligible to be a principal residence which may include a house, condominium, cottage, and the land that forms part of it. Canadian homeowners who are thinking about renovating their kitchen, replacing their furnace or installing new windows or a new fence, for example, could really benefit from this credit.

"The government realizes that home renovations increase the long-term value of a home and create economic activity by increasing the demand for labour, building materials, and other goods," said Minister Blackburn. "The HRTC alone provides about $3 billion in tax relief and is part of the $62 billion in stimulus delivered through the Economic Action Plan. For an estimated 4.6 million Canadian families, this means that they will be able to put their tax dollars back into their homes."

The HRTC can be claimed on the 2009 income tax and benefit return for eligible expenditures that total more than $1,000, and up to $10,000, which are made between January 28, 2009 and January 31, 2010. To claim the HRTC, Canadians should ensure they keep supporting documents such as receipts to support their claim.

The HRTC has already raised a lot of interest among Canadians, and the Canada Revenue Agency has responded to more than 700,000 enquiries about the credit so far through its Web site and telephone lines. For more information about the Home Renovation Tax Credit, go to actionplan.gc.ca or cra.gc.ca/hrtc, or call 1-877-959-1-CRA (in French 1-888-959-1-ARC).



FACT SHEET

The Home Renovation Tax Credit

The Home Renovation Tax Credit (HRTC) is a temporary non-refundable tax credit that applies to eligible home renovation expenditures for work performed or goods acquired, between January 28, 2009 and January 31, 2010, in respect of an eligible dwelling.

It will provide Canadian families up to $1,350 in tax relief. The credit is calculated as 15% of eligible home renovation expenditures with a total of more than $1,000, and up to $10,000. An estimated 4.6 million Canadian families will benefit from the HRTC.

A new line and schedule will be incorporated in the 2009 personal income tax return to allow Canadians to calculate and claim the credit. The HRTC will not be reduced by any other tax credits or grants to which a taxpayer is entitled for the same expenditures under other government programs. For example, if an eligible expenditure also qualifies for the medical expense tax credit (METC), both the METC and the HRTC can be claimed.

Eligibility

The HRTC can be claimed for most renovations or alterations to homes or properties that are enduring in nature. If the item purchased will not become an integral part of your home or property, it is not eligible.

Generally, any dwelling owned by Canadians and used personally by them can qualify, including their homes, condominiums or cottages.

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 18 years of age at the end of 2009. A family will be allowed a single credit that may be shared within the family.

Supporting documentation

Canadians should keep all their receipts and relevant supporting documentation. Appropriate documentation can include agreements, invoices and receipts, and must clearly identify the type and quantity of goods purchased or services provided.

Canada's Economic Action Plan

The HRTC was introduced through the federal government's 2009 budget, also known as the Economic Action Plan. The credit, as well as the Home Buyers' Tax Credit, and Home Buyers' Plan withdrawal limits, are tax incentives introduced to address the challenges of the global recession.

The Economic Action Plan measures are meant to encourage investments in Canada's housing stock, create jobs, and boost sales for building materials and other products. They will provide about $20 billion in new tax relief over five years for Canadian individuals and businesses. It is expected that the HRTC alone will provide about $3 billion in tax relief and encourage investments in Canada's housing stock. The Economic Action Plan aims to protect Canadian jobs and incomes by delivering $62 billion in stimulus to the economy.

Advertising

The Canada Revenue Agency kicked off its new national advertising campaign for the Home Renovation Tax Credit the week of July 13, 2009. The campaign includes advertising through television, select magazines, Internet and digital screens (transit in Toronto, Vancouver and Montreal, as well as elevators in office buildings in Toronto, Vancouver, Montreal, Calgary, and Edmonton).

The advertising campaign is complemented by a partnership program, with point-of-sale HRTC displays in large national retail establishments where home renovation products are sold. By mid-August, these establishments and their affiliates should have HRTC information displays with envelopes that people will be able to use to keep their receipts and related documents to claim the credit.

In addition, there will be a direct mail component in September where approximately 3.5 million homes that are 15 years old or older will be targeted, as they are more likely to require home renovations.

The Home Renovation Tax Credit is subject to Parliamentary approval.

For more information about the Home Renovation Tax Credit and eligibility criteria, visit cra.gc.ca/hrtc or actionplan.gc.ca, or call 1-877-959-1-CRA (in French 1-888-959-1-ARC).

Contact Information

  • Canada Revenue Agency
    Noel Carisse
    Media Relations
    613-952-9184
    or
    Office of the Minister of National Revenue
    Natalie Boileau
    Director of Communications (Acting)
    613-995-2960