Principal Issues: How much is the HRTC and does the installation of a new furnace qualify for the HRTC?
Position: The HRTC is a non-refundable tax credit that can be claimed for work performed or goods acquired between January 26, 2009 and February 1, 2010 for an eligible dwelling. Purchase of new furnace is listed as an eligible expenditure in CRA Qs and As.
Reasons: 2009 Federal Budget; CRA Qs and As posted on CRA website.
XXXXXXXXXX
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 9, 2009, concerning the home renovation tax credit (HRTC).
The HRTC is a new temporary non-refundable tax credit that can be claimed for work performed or goods acquired between January 27, 2009, and February 1, 2010, for an eligible dwelling. An eligible dwelling is a housing unit that is eligible to be an individual's principal residence or that of one or more of his or her family members. Eligible dwellings can include houses, cottages, and condominium units that are owned for personal use.
With respect to the calculation, the credit is 15% of the eligible expenditures of more than $1,000, but not more than $10,000, resulting in a maximum tax credit of $1,350 ($9,000 x 15%). Taxpayers will be able to claim the HRTC on a new line that will be introduced on the 2009 income tax return.
Criteria for eligibility, calculation, and information about the HRTC are available on the Canada Revenue Agency (CRA) Web site at www.cra.gc.ca/hrtc. You will note that item 15 lists a new furnace as an example of an eligible expenditure. Additional information will be posted on the site as it becomes available. A particular name and telephone number is not assigned to answer questions specifically on this credit; however, you can contact the CRA's individual income tax enquiries at 1-800-959-8281.
I trust that the information provided is helpful.
Sincerely,
Jean-Pierre Blackburn, P.C., M.P.
2009-01181
Special Processing Issues
Home Renovation tax Credit (Afinal)
Denise Sansfaçon 819-537-9600 ext. 2116
February 23, 2009