Since the Home Renovation Tax Credit came and went in the 2009 taxation year, my clients consistently inquire about writing-off their renovations. The Ontario government has in fact brought back a semblance of the Home Renovation Tax Credit, with some key differences, this time calling it the Healthy Home Renovation Tax Credit.
The credit is a refundable personal income tax credit applied to seniors and individuals living with senior family members. Qualified individuals will receive a 15% credit on all eligible expenses up to $10,000 worth of home improvements; equating to $1,500 in refunds. The fact that it’s a refundable tax credit means that you will receive the refund without exception, even if you have not paid taxes, unlike the federal credit in 2009 for which only individuals meeting minimum taxable income requirements were qualified to receive the refund.
The eligibility of renovation expenses is another point of difference between the new credit and its former incarnation. Where the Home Renovation Tax Credit covered most home renovations, the Healthy Home Renovation Tax Credit doesn’t allow simply for value-added renovations or recurring maintenance expenses, such as window installation or home repairs. The renovations must be specifically applied for the purposes of making the home safer and/or more accessible for seniors, such as walk-in bathubs, motion-activated lighting, handrails in corridors etc.
For more information on which expenses qualify visit the Ontario government website a very well put brochure is available at your convenience.
http://www.ontario.ca/taxes-and-benefits/find-freedom-your-home
Disclaimer: The information contained herein is not meant to be professional advice but for educational purposes only. You should consult with your accountant when handling such matters.