Principal Issues: The federal government should consider the cost of built-in appliances as qualifying expenditures for purposes of the HRTC.
Position: Referred to the Department of Finance.
Reasons: The HRTC legislation specifically excludes the cost of household appliances, whether built-in or stand-alone.
Original Signed April 1, 2010
XXXXXXXXXX
Dear Colleague:
I am writing in response to your correspondence sent to my predecessor, the Honourable Jean-Pierre Blackburn, on behalf of your constituent, XXXXXXXXXX has asked the Government to reconsider its policy regarding the eligibility of built-in appliances for the new home renovation tax credit (HRTC). I apologize for the delay in replying.
Subsequent to your constituent's request, the legislation regarding the new HRTC was enacted and contained in section 118.04 of the Income Tax Act. To qualify for the HRTC, an expenditure must be a qualifying expenditure as defined in subsection 118.04(1), which does not include an expense made or incurred to acquire a household appliance. As a result, expenditures for appliances, whether built-in or stand-alone, do not qualify for the HRTC.
The Canada Revenue Agency is responsible for administering the HRTC, whereas the Department of Finance Canada is responsible for developing and evaluating federal income tax policy or amending income tax law. As your constituent's concern relates to federal tax policy, I am forwarding a copy of our correspondence to the Honourable James M. Flaherty, Minister of Finance, for his consideration.
I trust that the information I have provided is helpful.
Yours sincerely,
Keith Ashfield
c.c.: The Honourable James M. Flaherty, P.C., M.P.
Minister of Finance
House of Commons
Ottawa ON K1A 0A6
William King
(905) 721-5194
2010-035705