Wednesday, 28 January, 2009

Home Renovation Tax Cedit - Quebec vs Canada

I finally found some details regarding the home renovation tax credit annouced by the Quebec finance minister last week. And there we go, Canada's finance minister annouced his budget yesterdy, which also includes home renovation tax credits. How do they compare to each other?

Quebec's Home Renovation Tax Credit
  • 20% of amounts exceeding $7 500, up to a maximum credit of $2 500 (for renovations of $20 000 or more)
  • The renovations have to be performed by a "qualified contractor", so self-performed renovations are out.
  • See the details here.

Canada's Home Renovation Tax Credit

  • 15% of amounts exceeding $1 000, up to a maximum credit of $1 350 (for renovations of $10 000 or more)
  • The renovations cost are eligible, as well as the associated expenses (building permits, professional services, equipment rentals and incidental expenses). It also includes renovations such as painting the house, laying new sod, etc.
  • See the details here.

At first glance, when comparing the two, the federal program seems to target modest spendings by house-owners while the provincial program looks like it targets bigger renovations. Also, Quebec's plan totally exclude any self-performed renovations, which seem to be allowed in Canada's program.

Since I was planning on continuing the replacement of our windows in phases of about $3 000, as well as perform some renovations myself (such as painting the exterior of the house and setting up a vegetable garden in the back yard), Canada's program is much more interesting to me. I may step up some of the renovations in 2009 to take advantage of the programs, but not by too much.

Do you have renovation plans for 2009?

3 commentaires:

CanadianInvestor said...

I'll probably use the federal program to do a bit more upgrading on my house this year. They want people to spend so I'm happy to take the bait.

Totalrenovering said...

Great article. Because you've compare the consumption of financial between Quebec and Canada. Now we have an idea which is more expensive for renovations.

Debt Help Blog said...

great post, very informative. Great contrast between Quebec and Canada.