You could be eligible for a tax credit of upto $1350.

Beginning with immediate effect and continuing until February 1, 2010, home and cottage owners are eligible for the Home Renovation Tax Credit, which offers up to $1350 in tax credits for almost all labour and materials costs related to home renovation.

The program applies to projects worth a minimum of $1,000 and a maximum of $10,000. The maximum tax credit that can be received is $1,350.

Only Expenditures incurred  between Jan 27, 2009 and Feb 1, 2010 will qualify for tax relief. In a survey of homeowners done in early April, 70% said they intended to renovate before Feb1, 2010.

What's Eligible

• Renovating a kitchen, bathroom or basement
• New carpet or hardwood floors
• Building an addition, garage, deck, garden/storage shed, fence, re-shingling a roof.
• A new furnace, wood-stove, boiler, fireplace, water softener or water heater.
• A new driveway or resurfacing a driveway
• Painting of interior or exterior of a house
• Window coverings directly attached to the window frame and whose removal would alter the nature of the dwelling.
• Laying new sod.
• Swimming pools (Permanent in ground and above ground) fixtures- lights, fans, etc.
• Associated costs such as permits, professional services, equipment rentals and incidental expenses.
• The work must be enduring and integral to the dwelling – be it house or cottage- to be claimed
• If you live in a condo or co-operative housing project, your share of spending on common areas will also qualify for tax relief.

What's not eligible:

• Furniture, appliances and audio and visual electronics
• Purchasing of tools
• Cleaning carpets
• House cleanings
• Maintenance contracts (furnace cleaning, snow removal, lawn care and pool cleaning)
• Financing costs