Personal Income Tax Measures

Non-refundable tax credits

• Increase to the basic personal amount, the spousal and common-law partner amount and the eligible dependent amount to $10,320 for 2009.
• Increase upper limits of the two lowest tax brackets by 7.5 per cent; upper limit for the lowest income bracket increased to $40,726 (taxed at 15 per cent) and the second income tax bracket to $81,452 (taxed at 22 per cent). 
•  The amount on which the Age Credit is based will be increased by $1,000 to $6,408 effective for 2009 with no change to the net income level at which the credit begins to be phased out.
• These amounts will be indexed for inflation in subsequent years.

Home renovation tax credit (HRTC): 15 per cent of renovation costs not exceeding $10,000 incurred prior to February 1, 2010. The maximum credit of $1,350 would be claimed on the 2009 tax return. Family members would be subject to a single limit.

• Eligible expenditures would include kitchen renovations, additions, decks, painting, new carpeting and hardwood floors. Routine maintenance, furniture and appliances would not be eligible.
• The taxpayer's principle residence would be eligible. In the case of condominium and co-operative housing, the individual's share of eligible expenditures on common areas would be included.
• The HRTC will not be reduced by other tax credits or grants.

First-time home buyers will be able to withdraw a maximum of $25,000 from a Registered Retirement Savings Plan under the Home Buyers Plan, an increase of $5,000.

• Non-refundable tax credit for first-time home buyers, based on the amount of $5,000, who acquire a qualifying home after January 27, 2009. Individuals eligible for the disability tax credit can claim this credit when a home is purchased that is more accessible or better suited to their personal and care needs. The individual's spouse or common-law partner can claim any unused portion.

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