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Canada: Are You Eligible for the Home Renovation Tax Credit? Don't Miss the Deadline!

Canadian homeowners may be able to take advantage of the Home Renovation Tax Credit (HRTC), based on eligible expenses for home renovation work performed or goods acquired after January 27, 2009 and before February 1, 2010. As a Member of the Top 5 in Real Estate Network®, I have received many inquiries regarding eligibility for this credit, so I thought I’d share the details with my entire community:
- The HRTC is a non-refundable tax credit of up to $1,350 for home renovations and alterations. The HRTC will reduce your federal income tax, if you have any. However, if the total of your non-refundable tax credit is more than your federal income tax, you will not receive a refund for the difference.
- You are eligible for the credit even if renovation-related products are installed after January 2010, as long as those products were purchased between January 27, 2009 and February 1, 2010.
- If an eligible expense involves work performed by a contractor or a third party, and the work is not completed by the end of the eligible period, only the portion that is completed before February 1, 2010 will qualify, even if a payment has been made.
- You do not have to pay the full amount for the work before the deadline. If you are billed by a contractor for goods acquired and work performed before the deadline and you do not pay the bill until after the deadline, your expenses would still be eligible for the HRTC.
- The expenses you claim for the HRTC must be supported by acceptable documentation, such as:
  • Information that clearly identifies the vendor/contractor, their business address and the GST/HST registration number
  • A description of the goods and the date when the goods were purchased
  • The date when the goods were delivered (keep your delivery slip as proof) and/or when the work or services were performed
  • A description of the work performed including the address where the work was performed
  • The amount of the invoice
  • Proof of payment; receipts or invoices must indicate paid or be accompanied by other proof of payment, such as a credit card slip or cancelled cheque
  • A statement from the co-operative housing corporation or condominium corporation (or, for civil law, a syndicate of co-owners) signed by an authorized individual identifying: the amounts incurred for the renovation work; as a condominium owner, your portion of these expenses if the work is performed on common areas; information that clearly identifies the vendor/contractor, their business address and, if applicable, their GST/HST registration number; and a description of the work performed and the dates when the work or services were performed.
For more information on the HRTC and eligible expenditures, visit the Canada Revenue Agency Web site at cra.gc.ca/hrtc.

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