Principal Issues: 1. What constitutes a renovation and what is the difference between a renovation and maintenance? 2. Whether the purchase of a new roof qualifies for the HRTC?
Position: 1. Presently, there is no legislation, however, based on 2009 budget documents, expenditures will qualify for the HRTC if they relate to a renovation or alteration of an eligible dwelling and the renovation or alteration is of an enduring nature and integral to the eligible dwelling. The cost of routine repairs and maintenance normally performed annually or more frequently will not qualify for the HRTC. 2. Yes
Reasons: Based on 2009 budget documents.
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Dear XXXXXXXXXX :
The office of the Right Honourable Stephen Harper, Prime Minister of Canada, forwarded to me a copy of your email, which I received on February 5, 2009, concerning the new home renovation tax credit (HRTC).
Presently, there is no draft legislation regarding the new HRTC introduced in the federal budget tabled on January 27, 2009. However, the Honourable James M. Flaherty, Minister of Finance, announced in Annex 5 of the budget documents that expenditures will qualify if they relate to a renovation or an alteration of an eligible dwelling, including land that forms part of the eligible dwelling, and the renovation or alteration is of an enduring nature and is integral to the eligible dwelling. Such expenditures would include the cost of labour and professional services, building materials, fixtures, equipment rentals, and permits.
The cost of routine repairs and maintenance normally performed annually or more frequently will not qualify for the HRTC. Examples include furnace cleaning, snow removal, lawn care, and pool cleaning.
Based on the information in the budget documents announced by Mr. Flaherty, the purchase of a new roof will qualify for the HRTC.
More information on the credit is available on the Canada Revenue Agency Web site at www.cra.gc.ca/hrtc and the Department of Finance Canada Web site at www.budget.gc.ca/2009/pamphlet-depliant/pamphlet-depliant3-eng.asp and at www.budget.gc.ca/2009/plan/bpa5a-eng.asp#personal.
I trust that the information I have provided will be helpful.
Sincerely,
Jean-Pierre Blackburn, P.C., M.P.
Nerill Thomas-Wilkinson
(905) 721-5187
2009-030959
February 18, 2009