The Home Renovation Tax Credit (HRTC) is a temporary program designed by the Canadian government to stimulate economic growth and help Canadians with home improvements.
The HRTC allows you to claim expenses incurred for home improvements dated after January 27, 2009, and before February 1. 2010. You can file the HRTC on your 2009 tax return. Keep your receipts and labour contracts filed away safely in case CRA needs to see them in the future.
The HRTC can help you to save up to $1350.00 on home improvements purchased before February 1, 2010. You still have a few weeks to buy your materials if you are planning a home improvement project for 2010 and you want to take advantage of the tax credit. Although you won’t be able to claim labor costs after February 1st, you will at least get the tax credit for a percentage of the cost of your materials. The nice thing is that you don’t have to have your renovations completed by February 1st, you just have to buy the materials before then.