As a Toronto homeowner you could be eligible for a tax credit of up to 15 per cent on eligible home renovation expenditures. This tax credit kicks in on expenditures over $1,000 but not more than $10,000 which means that the maximum tax credit that can be received is $1,350. The variety of expenditures that qualify for the tax credit includes renovating your kitchen, bathroom or basement. Painting the interior or exterior of your house. Installing new carpeting or hardwood flooring. Building an addition, deck, fence, or retaining wall. Replacing your heating/air conditioning system. Upgrading the insulation in your home. Resurfacing your driveway or replacing your lawn with new sod. However, things like buying furniture or a big screen tv, cleaning your carpets, buying tools or performing regular maintenance on your home won’t get you the tax credit.

Properties that are eligible for this tax credit include houses, cottages and condo units that are owned for personal use and the work must be performed or goods acquired after January 27, 2009 and before February 1, 2010.

This tax credit can also be coupled with other government programs that put money back into your pocket when you renovate your Toronto home. For instance, making your home more energy efficient can qualify you for grants of up to $5,000 under the EcoEnergy Retrofit Program and you will still be able to claim the Home Renovation Tax Credit as both programs can be put in place on one renovation. For example, if a homeowner installs a new gas furnace and insulates the basement for a total cost of $9,000 he or she would be eligible for:

1. EcoEnergy rebate of $600 for the furnace.
2. EcoEnergy rebate of $100 for basement header insulation
3. EcoEnergy rebate of $500 for basement wall insulation for R-10 to R-23
4. Home Renovation Tax Credit would be 15% of $9,000 for $1350 against the 2009 taxes.

So the total advantage of the Home Renovation Tax Credit and the rebates under the EcoEnergy Retrofit Program would be $2550 or 28.3%

For more information about the Home Renovation Tax Credit, visit the Department of Finance website at www.fin.gc.ca