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Renovation tax credit not yet approved: expert
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CTV.ca News Staff
Date: Thu. Aug. 6 2009 6:17 PM ET
Canadians planning to take advantage of the Home Renovation Tax Credit should know that it has not been passed into law, though one expert says it is almost a certainty that they will be able to file for it on their taxes.
The $3 billion program was introduced in January as an incentive that the government hoped would help stimulate the Canadian economy during the early days of the current recession.
The government estimated that as many as 4.6 million Canadian families would take advantage of the chance to complete home improvements, while saving up to $1,350 on their annual taxes.
Sales at home centers and hardware stores were up for the third consecutive month in May, suggesting that the incentive seems to be working.
But public policy consultant Bob Whitelaw told CTV's Canada AM that the HRTC technically cannot be claimed until it is approved by Parliament -- something that hasn't happened yet.
"This was introduced as part of the 2009-1010 budget in January, the credit is effective from January to next February, but subject to passing in the House of Commons and Parliament before you can really claim it on your taxes," he told CTV's Canada AM during an interview from Ottawa on Thursday morning.
And while Whitelaw believes it is highly unlikely that the tax credit will not go forward, Canadians should know that it has not been passed into law.
"Carry on with those expenditures, know that I'm sure our colleagues and people in government will be working diligently to pass this -- whatever party might be in power, within the next year -- so that it will be in effect...for the tax year," Whitelaw said.
The federal government has been heavily promoting the tax credit as part of its economic action plan, and only last week, Prime Minister Stephen Harper said "there has never been a better time to renovate your home," suggesting that the tax credit can help homeowners save on their taxes and increase the value of their homes.
Under the HRTC, homeowners can receive a non-refundable tax credit worth up to $1,350 depending on the expenses associated with eligible renovations or improvements made after Jan. 27, 2009 and before Feb. 1, 2010.
The tax credit can be claimed for expenditures exceeding $1,000, but not more than $10,000. If a homeowner spends more than $10,000 on renovations, only the first $10,000 is eligible for the credit.
Homeowners are required to provide receipts and appropriate documentation in order to claim it.
A list of eligible HRTC expenses can be found on the Canada Revenue Agency website.
With a report from CTV's Canada AM
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I applaud the budget, even though Health Care and education may stay unscathed. Sadly this cannot last and I worry to later this year where cuts will become enviable. If anything, this provides the Wildrose Alliance plenty of ammo when an election is called.
Comments are now closed for this story
ADM Saskatchewan
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lr
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Luc Bonneville
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Mr. North
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When people read this they will think Haper is misleading them, and this is what the Liberals want.
Spenc from BC
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Dave T
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Bruce
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Trent
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Why should I subsidize rich people putting on deck
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Michael, Cambridge On
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Hmmm? I wonder if these folks who spent money will get money back or this only applies to folks who spent after law became effective.
Either way but this shows how stupid this Harper government is because they should at least wait till it became law before they start telling people to go spend on reno.
Also... we had saw this before from Harper's governemnt in past for example - Greener car tax rebate... They quietly cancelled it because harper's government don't know how to bring money to people.
Boot Harper out of office then it is probably when we will finally start see money in our pocket.
Again - GST cut does not benefit people... People lost more money to this too because of government's debt.
Green rebate tax didn't because people never got money either.
Reno-tax - people spent before it became effective and when eco become better then they probably will cancelled that tax also so it probably will never really benefit people either.
Also - where did promised billions dollars for farmer go?
Hmmmmm..
John Rennie
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Alma
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Way to go Conservatives.
Sandy
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zwinky
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I'm getting very tired of all the smoke and mirrors being set up by our politicians to make it look like things are being done when they are not.
steve in Ontario
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Roger T
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- Announce the reno tax rebate to entice and have consumers rush out to spend while the plan has NOT BEEN PASSED
- Are we (YOU) really getting our money's worth buy spending thousands and piliing up our (YOUR) debts loads just to get back a few buckets. Is it worth putting your personal financial in jeopardy.
Til than saving comes before the economy!
Chicken
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I am counting on the Liberals not to cost me my refund on this.
david sawkiw[saskatchewan farmer]
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How do homeless people take advantage of this tax break??
Once again, the rich get richer....
Jay-TO
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Paul
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construction queen
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as a homeowner i took a good hard look into this program, a credit back for spending $$$, what could be the downside? you have to pay for an "energy audit", a stranger has to come into your house and take a peek at everything, not just the project but also at everything else that is not related tot he project at hand. to have this stranger come into your house is an expense that is yours! the average visit will put you back around $200.
that will be for the FIRST visit. in order for the rebates to be applied you must pay for this person to at least 2 times! the number of visits can increase depending on work to be done. so that is around $400 just in order to qualify! and have you seen the list of expenses???
sure, there are alot of items on it but the items are specific items! you can't buy what you want to but because it appeals to you. it must be on their list of approved manufactured items!
nice, they are all made out of ticky tacky and they all look just the same!
from a construction stand point the limit is laughable! $10 000! that is a minor bathroom reno! and that is a guy who is going to cut corners to get you, the homeowner, the best price not the best workmanship. do you want to know how many bad reno jobs are out there? way too many!
sure, for 1 year you get a credit, you need to spend in order to get. that is if the government ever approves it??? sounds like the typical daily government dealings.
Raymond
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It's win-win for the CPC.
If the opposition refuses to pass this tax credit bill, they will likely suffer the wrath of thousands of renovating homeowners.
If it passes, it's a feather in Harper's cap.
I'm keeping my receipts.
Scott
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I for one have already spent more than $10,000 on reno's and I am really hoping for this tax credit.
Fraser - Ontario
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This has as much odour as the recent Toronto Garbage...and the initiative would amount to nothing more than an underhanded process by which to get people spending money, in effort to stimulate the economy.
Just another feeble display of leadership....one that I didn't vote for. A jackass is a jackass - no matter which end you look at....
Disgusting.....
Terry S.
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It saves wealthy people a around a thousand bucks hoo-ra.
a tax credit that would allow poor and lower middle class people to replace their 25 year old furnaces or hot water heaters that are massively inefficient may actually have HELPED.
Now it turns out it was all a cloud of smoke to again con people into believing the Conservatives give a damn.
Is anyone surprised?
SR
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Brian in Calgary
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As a former practicing lawyer, my advice would be that, until this rebate is passed into law and the details known, do not do renovations unless you can afford to be out of pocket for the expenses.
Any practising lawyer who advised their client to immediately undertake a course of action on the expectation that a law was going to be changed or enacted ("almost certainly") would be reckless. If that client were to suffer financial harm because the law wasn't passed or contained provisions not as favorable as the lawyer had expected, s/he would be inviting a complaint to the Law Society from an irate client, and perhaps a claim of negligence as well.
Prof. Pye Chartt
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This is a heavily promoted government program that stands ZERO chance of being tossed into the can by ANYBODY on Parliament Hill.
Let's move on.
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Thanks for the hollow advisement, Mr. Whitelaw. Enjoy your moment of fame and excitement today.
Edb
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Why did you buy the house and why should the government (taxpayers) cover your reno costs?
$1350 is better then $0 that you'd be sure to receive from our favorite silverspoon socialist parties.
Here's a radical right wing idea...tax deduction for interest on mortgage payments...waite a minute, that's too american, woops,waite a minute again, we all love America now don't we??
caveat emptor
If you can't afford to reno your house, move
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Stop draining the national treasury with your socialism.
MAL of TO
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The billions to auto bailouts are worthless, the city projects are better [other than Toronto because we're special and don't need to follow the rules] but $500 in the hands of a working woman or man will do so much more than $500,000 in the hands of a board of directors.
This should be clarified and entered into law through an order in council and ratified one minute after the GG sits down from the throne speech.
Michael Cambridge On
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You blamed this on unelected senate. Nothing in this news artcile mentioned anything about bill was already passed in House of Common yet....
So read full story before you shoot your biased mouth.
Also I would like to point out that unelected senate is good thing because they will not become partiasn as in House of commons.
What would improve senate floor is remove party-status among all senators.
No parties allowed.... That would be good.... All sober thinking is required.
simple as that.
Harper shouldn't have a free rein on his power. That's what senate are there for to protect Canadian from idiots elected mps who bow to their parties's idealogy.
be careful for what you wish for.
L-A in OT
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This is stupid. I hate the greed and lack of self responsability in this country. People want lower taxes AND all kind of advantages.
Wake up. The government is funded by our taxes being paid, your advantages (health care, free school, wellfare, EI) are funded by the people paying taxes and you still manage to want more and refuse to want to pay taxes.
Harper can go back to bed. LEt the Liberals fix his mess.
CYL
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Wes
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This guy is just someone looking for a bit of air time to get his mug on TV.
He probably pulls fire alarms in crowded theaters for excitment.
Greg - Oshawa
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Fools should not speak, for once they do all doubt is removed!
Ian in Calgary SW
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SAL in Victoria
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I think you have your rebates confused.
The tax rebate for renos, that is different to the energy rebates. You do not need an energy audit done for the renos and you can receive up to $1,350 and claim it on your tax return.
As for the energy rebates, yes you do need an energy audit (ours cost $150). How else can they tell you what needs fixing? Our inspector came out and did a thorough investigation of where our energy loss was and made recommendations. We are almost done with our our improvements and will have him back for a re-audit (yes another $150, but we get it rebated). Again, they need to see that the improvements have been done.
Our old oil furnace was running at 60%. Our windows when closed were leaking air like they were open. We had air leaks in various other places as well.
Then our auditor will file all of our paperwork for both the fed and prov governments for our rebates. I don't know what list of items you were given. We weren't given any list other than they had to meet certain energy standards.
I'm looking forward to a nice cozy, energy efficient, eco-friendly house this winter!
shaun
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This is no way to 'retain the confidence' of the electorate. If you have to trick and threaten your way to another day in power, it really makes you wonder what ideals are guiding our country. The funny thing is that many of the agree/disagree comments on here show that many of you are buying it - you are ready to crucify the Libs if they threaten your tax credit, despite the fact that it is the Cons that have prmoted something that isn't yet entrenched in law.
john meron
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Rob
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Second, most contractors have increased their prices 10-15% starting spring 2009 because they are busier than ever, and they have taken into account the fact that the customer will get some of this money back via the tax rebate.
government employee
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I agree that the government has misled the public on this. While it is very likely this bill will be passed -- considering the positive effect it has so far had on the economy -- it is clear that the conservatives have been keen to push this program without informing the general population that it isnt even in law yet (except in fine print on advertisements).
This is irresponsible, and I make a point to inform my clients of this fact. Most are surprised and baffled to learn of this.
It is unfortunate that our government seems more interested in rhetoric and in staying in election mode, than in providing clear and accurate information to the Canadian people.
John in Mississauga
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Harper should have had all his ducks in a row before pushing this program out there without it being law yet. Believe me, HE KNEW IT
Angry displaced westerner, living out East
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SO QUIT WHINING!
Spenc
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1. This was a budget matter included in the last budget which the Liberals supported.
2. It has passed the reading of the house and is stuck in the unelected, Liberal dominated, senate who are holding it up, as they do regularly all year, when they are not on vacation on our dime.
3. The only way this will not become law is if the government is defeated by the Liberals in the fall, at which time this bill will be pending approval in the senate.
4. The Liberals then have a choice, either to have their senate members pass that portion of the budget bill before they bring the government down or let it die with the government.
5. If the Liberals do this latter thing they not only risk the wrath of the electorate, they will also throw a significant wrench into the retail economy, for which they will be held accountable. They would be fools to do this.
All this leads to one question. What is the purpose of this story? The answer is simple. Create a question that will discourage economic activity, the blame for which can be perceptively laid at the feet of the Conservative government as much as the Liberals.
Very tricksy me thinks! Judging by many of the posts here, the ones that are allowed to stand at least, its working. In the media industry this is called propaganda. Shaping public opinion through mis-information. Shame on CTV
Rick from Quinte West
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Spenc to
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1. The need for stimulus is immediate so generating spending imperative.
2. To wait till the Liberal dominated senate passes this into law means 7 months of critical spending, since its announcement, is lost, so would the effectiveness of the bill be lost given its one year limitation.
3. The responsibility lies with the opposition to ensure the bill they passed is enshrined into law since the Canadian Economy in total has been riding on this over-all budget since its passage. The government is allowed to act on what the house passes. The opposition is equally responsible to ensure that a budget it supported is implemented in a timely fashion, especially given the current circumstances.
So much for Liberal logic!
Kevin in T.O.
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DM in NB
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This will be strongly taken into consideration if there should be a fall election. In fact, if the Liberals were willing to pass this into law if they came into power, I think this lie alone would justrify having the election. The government should be able to be sued over this deception.
William
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On the outside the program looks good, but on the inside it looks evil. The Government can not fix problems. The tax credit might not become legal. Canada has many taxes, that should not be paid, so I hope this tax credit law becomes real soon. People should receive the tax money back to their bank accounts. We pay too much tax to the federal government, and to the provincial government. The Government loves money. And the love of money is the root of all evil. However the Government has some good things, its not all bad. But they should of passed the incentive law in May 2009 before the members of parliament went on vacation.
Uncle Sam can not be trusted, because he is weak, and strange
Deb
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Are we being screwed? Nailed? Hammered?
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Hunter Mars
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That is what you will receive .
Not the $1350.00,the government keeps bleating about .
Wow an extra $220.00, for ten grand.
Wonderful !
Steve the Canadian
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Rob
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This story stinks of piggy smell...Iggy the Piggy...
Um... Spenc...
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What are you, an anarchist?
What Government Employee was saying is that's its irresponsible to promote a government program as being fully legislated and enacted when it isn't, and when there is a slight chance -- no matter how slight -- that it may not be passed.
Patrick
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Barry
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Brian in Calgary
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Dave in Cbourg
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You have your facts all wrong. You are refferring to the energy rebates for changing your furnace or replacing your windows. ... and by the way the Audit costs are refundable.
The tax credit is for the amount over $1000.00 up to $10,000.oo for home improvemnt costs. It is not a cheque for $ 1350.00 ( for the maximum $ 9,000.00 spent) but a rebate. So if you made $ 60,000.00 last year, your taxable gross income is reduced to $ 58650.000 if you spent the maximum. And don't worry folks.....it's gonna pass. No party would take the risk in this time of political flux to screw around with a tax rebate such as this, especially after all the ads on tv. and radio.
Dan
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BC Insight
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Dave...you reap what you sow. If you don't pay taxes, you're not going to get a tax break. Hopefully that simplifies it for you.
Ryan P.
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government worker
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Parliament's passed a few of the programs tabled in the budget already - like EI 5-week extension, like the increase in the amount of RRSP you can use for the Home Buyer's Plan...people need to stay informed - and they're not!
Most of the comments for this article are ridiculous....Some people are plain stupid! If you have renovations to do, a 15% tax CREDIT (it's not a cash-back thing, people!) will not make a difference in your decision to go through with the renovations or not! Wake up, guys! Be a little more cultured and informed!!