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The Governments of Canada and Quebec give tax credits for residential renovation

The Governments of Canada and Quebec give tax credits for residential renovation

Because of the recession the Canadian and Quebec Governments have recently adopted budgetary measures to support the economy and the construction industry making provision for tax credits for landlords who will carry out or who will have renovation works carried out in their dwelling.

In the latest budget of the Harper Government provision has been made to put into place a temporary tax credit for residential renovation (HRTC : Temporary Home Renovation Tax Credit) which could be as high as 1 350 $ in fiscal relief for expenses exceeding a 1 000 $ but not higher than 10 000 $. Provision has been made to make money available for this programme until 2010.

In Quebec, the latest economic forecast expects that for the owner of a principal residence or of a dwelling with 2 or 3 apartments as owner-occupant, the tax deduction has been set at 20 % of the amount spent on renovations and exceeding 7 500 $, for a maximum credit of 2 500 $. The habitations admitted to this programme are the individual home, the duplex, the triplex, the permanent mobile home and the condominium.

The federal Retrofit ecoENERGY Program will be refuelled with 300 millions dollars over two years. The programme may allow the owner to benefit from subsidies which could go as high as 5 000 $, with certain conditions to be respected, of course.

Canadians desiring to acquire property do still have access to the Home Buyers Plan (HBP). First-time home buyers will be able to take more advantage of their RRSP, Ottawa allowing the maximum limit to be increased from 20 000 $ to 25 000 $. Finally, a tax relief possibly reaching 750 $ will also be offered to first-time home buyers.

For more details, one can visit the following Websites: www.gouv.qc.ca ; www.canada.gc.ca .

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Québec Landlords Association (1)

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