Principal Issues: Whether the proposed HRTC will be extended for the 2010 tax year.
Position: No.
Reasons: Section 118.04 of the ITA does not extend the HRTC for expenditures incurred after January 31, 2010.
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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 correspondence, concerning the new home renovation tax credit (HRTC). Please accept my apology for this delayed reply.
You want to know if the proposed HRTC will be extended for the 2010 tax year. The proposed HRTC will provide individuals with a temporary 15% non-refundable income tax credit on eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009, and before February 1, 2010, for agreements entered into after January 27, 2009.
The legislation regarding the new HRTC was introduced in the House of Commons on September 30, 2009, by the Honourable James M. Flaherty, Minister of Finance, and does not extend the HRTC for expenditures incurred after January 31, 2010. In addition, Mr. Flaherty has not announced any plans to extend the HRTC.
I trust that the information I have provided is helpful.
Sincerely,
Jean-Pierre Blackburn, P.C., M.P. Minister of National Revenue
Ananthy Mahendran
(905) 721-5204
2009-034141