Cancellation of Home Retrofit Program –

A lot of home sellers have reaped the rewards of the home retrofit program. The benefits were two fold in that home owners made their homes more efficient while at the same time increasing the value of their properties. The program was introduced in 2007 as the ecoEnergy program. After conducting the initial audit home owners were able to update their properties with everything from insulation to furnaces and air conditioners in order to get back as much as $5,000 in rebates. In order to obtain the rebates a follow up audit had to be performed.

This program was intended to run until March 2011. However, on March 31st at 5pm ET it was announced that the Department of Natural Resources would not be accepting any new applicants to the program. Those who have had the first audit done can complete their retrofits and then complete the second audit to get the rebates. According to the press release If you have already booked an appointment for a pre-retrofit evaluation, have completed an evaluation or applied for re-entry to the program, you remain eligible to apply for a grant.” Homeowners who have not booked an audit will not be eligible for the rebate. The Government will be administering the program until March 31, 2011.

The speed at which the program was cancelled and with little to no warming is drawing fire from the political opposition. This program was also creating many jobs in Canada.

I know that I personally have benefited from this program, as have numerous clients of mine. Hopefully the decision makers will reconsider this decision. For those of you that missed the opportunity you may want to send your opinion to Ottawa. For those that are still going to squeak in under the wire, you will want to make the most of the opportunity.

If I can be of assistance to you with regard to this information, please contact me at 905-330-1241 or rdavison@trebnet.com. All the best. Ryan.

Is It Too Late To Maximize The Home Renovation Tax Credit (HRTC)?

I imagine with the time of year, you’ve been likely more focused on gift giving than receiving.  I wanted to take a moment to ensure you are well aware of the gift the Federal Government has wrapped up for Canadian homeowners.  Keep in mind that unlike the Holidays which have come and gone with considerable speed, there are still two months left to take advantage of the Home Renovation Tax Credit (HRTC).  You may have heard mention and not taken a good look into the HRTC.  Please review the details below as you may be eligible for a tax credit.

Here is how the HRTC works:

-A non-refundable tax credit on eligible expenditures for work performed or goods acquired after January 27, 2009 and before February 1, 2010.
-Based on 15% of eligible expenditures greater than $1,000 but less than $10,000.
-Maximum “non-refundable” tax credit: $10,000 – $1,000 = $9,000 x 15% = $1,350.
-All of the eligible expenditures must be supported by receipts, so be sure to hold on to them.
-Here is a brief list of eligible expenditures under the HRTC: Renovating a Kitchen, Bathroom or Basement, Windows & Doors, Carpets & Flooring, Upgrading your wiring from 100 to 200 amp service, Painting Interior/Exterior Walls, Re-shingling a Roof, New Driveway, New Furnace or Air Conditioner, Installing a Permanent Pool or Hot Tub, New Fence, New Deck, Additions and more.
-All associated costs of installation, equipment rentals, permits, professional services and incidental expenses also count towards the HRTC calculation.
-Ineligible Expenditures include but are not limited to: Purchasing tools, Cleaning carpets, Financing Costs, House Cleaning and Maintenance Contracts.
* Subject to Parliamentary approval
As this “gift” from the Federal Government is a limited time offer, 2009/early 2010 is a great time to take advantage of the Home Renovation Tax Credit while simultaneously increasing the value of your home and doing your part to help jumpstart the Canadian Economy. I would be happy to discuss any work you might be considering at your convenience. Be sure to confirm the eligibility of your expenditure at www.cra-arc.gc.ca/hrtc  or by calling 1-877-959-1272.  These types of gifts do not come along everyday, so be sure to see if you might benefit from the HRTC.  Thanks for checking in!