Federal Government Renovation Credit
Thinking of home renovations? New federal tax credits can help.
Springtime is all about new beginnings, and sprucing up your living space can be just thing to shake off winter. For many Canadians, new incentives recently announced in the federal budget will make a home renovation project more attractive.
The federal budget announced in January includes a home renovation tax credit of 15 per cent of the cost of your project, up to $1,350. To qualify, your project has to be more than $1,000 and the credit tops out at a $10,000 ceiling. This is a non-refundable credit, which means it will reduce your taxes owing, but you don’t receive cash if you have a positive balance. Also, the materials and labour for the project need to be purchased before February 1, 2010.
If you go green with your renos, you can “double dip” – the renovation credit can be claimed on projects that also qualify for up to $5,000 with the federal ecoEnergy Retrofit Program.
Note that these proposed tax credits will not come into effect until the federal budget receives royal assent, expected later this spring.
If your spring renovation plans involve larger projects, it can pay to refinance your mortgage, which allows you to get the very best borrowing rates by using the equity in your home. A mortgage refinance will allow you to spread your payments over a longer period of time than with a line of credit. You may also be able to consolidate a range of higher interest borrowings (credit cards and car payments, for example) at the time of your mortgage refinancing. An Invis mortgage professional will look carefully at your financing needs and advise on the approach that suits your needs.
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