Jan 2010 20

Taxing Time for Home Renovators

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Home renovators have little time to knock their properties into shape before the federal government's home renovation tax credit expires at the end of the month.

The scheme has been a huge bonus for DIY companies across the country.

In a month which is seasonally static for the industry, many suppliers have recorded 30 per cent plus boosts in sales of renovation commodities, from floor tiles to window frames.

But it’s not a time to gloat on profit. Many are worried that the economic recovery isn't yet sturdy enough to sustain demand once the credit scheme runs out this month.

It's a key concern not lost on top policy makers. The Bank of Canada said Tuesday the recovery continues to depend on “exceptional” and “extraordinary” measures by governments and central banks. Sustained global economic growth hinges on the delicate timing of when life support of low interest rates and stimulus spending is removed.

Hopes for an extension of the renovation tax expiry were dashed this week when Finance Minister Jim Flaherty said the measure was not “inexpensive” and the government's plan is to let it expire.

The program lets Canadians get up to $1,350 in tax relief for projects worth between $1,000 and $10,000 that take place by Feb. 1. It's proven popular, those in the industry say.

Canada Revenue Agency figures at least 3.5 million Canadians have enquired about the program on the web or by phone since it started.

3 Responses to “Taxing Time for Home Renovators”

  1. Twitter Trackbacks for Taxing Time for Home Renovators [jaybanks.ca] on Topsy.com

    […] Taxing Time for Home Renovators jaybanks.ca/vancouverrealestatenews/2010/01/20/home-renovation-taxcredit-expires – view page – cached Home renovators have little time to improve their properties before the government’s home renovation tax credit expires at the end of the month. […]

  2. finola

    is it sufficient to have a contract signed but renos not yet completed by feb/1st?

  3. Jay

    Hi Finola,

    I’m afraid not. No. Any work that is completed and paid for after Feb. 1 is not elIgible for this tax credit.

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