How to Claim the Home Renovation Tax Credit

The home renovation tax credit (HRTC) is a 2009 non-refundable tax credit available to homeowners who spent on renovating/improving their home after January 27, 2009 and before February 1, 2010.

The credit is available on eligible expenditures of more than $1,000 and up to $10,000. The maximum tax credit is $1,350 ($9,000 X 15%).

Eligible expenditures include:
• Renovating a kitchen, bathroom, finishing a basement, building an addition, garage, deck, shed or fence.
• A new furnace, water heater or central air conditioner.
• Windows, doors, new carpet or hardwood floors.
• Fixtures such as blinds, shades, shutters, lights and fans.
• Painting, both interior and exterior.
• Permanent swimming pools (in and above ground) and hot tubs.
• Sodding a lawn, perennial shrubs and flowers, resurfacing a driveway.

Ineligible expenditures include:
• Tools, furniture, appliances, audio-visual electronics, curtains and drapes.
• Routine maintenance (carpet, house, furnace, pool cleaning, snow removal, lawn care).
• Financing costs.

Claiming the tax credit
To claim the credit complete Schedule 12 "Home Renovation Expenses" that is part of the 2009 tax return package. For each eligible expenditure note the date of the invoice or contract, the name and GST number of the supplier or contractor, a description of the supplies or work done and the amount paid (including PST and GST).
The total of your expenses, to a maximum of $9,000, is then carried to line 368 of Schedule 1 "Federal Tax" of your tax return to be used in calculating the total federal tax credits available to you for 2009. You don't need to send in your receipts with your return but you need to retain them in case Canada Revenue Agency asks to see them.