Renovation Tax Credit (HRTC). — The statement issued by the federal government: Any improvement or renovation of an enduring nature to dwelling or the land on which the dwelling sits.

Landscape Manitoba interprets this as the following are considered eligible:

  • laying new sod
  • Purchasing trees, shrubs, perennials
  • Interlocking driveways, retaining walls, pathways, decks
  • Irrigation and lighting systems
  • Ponds and waterfalls
  • Garden sheds
  • Professional landscape design services and professional landscape contractor services

The following are listed as not eligible: annuals, lawn and garden maintenance, tree maintenance, snow removal, hanging baskets, containers and planters.

The material purchased must be of an "enduring installation into the land". Eligible home renovation expenditures for work performed, or goods acquired, are those between Jan. 27, 2009 and Feb. 1, 2010. A 15 percent credit may be claimed on the portion of eligible expenditures exceeding $1,000, but not more than $10,000, meaning that the maximum tax credit is $1,350.

Properties eligible for the HRTC include houses, cottages and condominium units that are owned for personal use. Expenses such as labour, building permits, equipment rentals, professional services and incidentals are also eligible.

Do-it-yourself labour is not eligible for the tax credit. Consumers are not required to submit the receipts with their income tax file to Revenue Canada. The receipts will be needed if Revenue Canada requires confirmation of those projects.

Steven Fletcher, Minister of State for Democratic Reform, said people should keep their home renovation plans on track even though the government won’t be able to get legislation implementing the tax credit in place until at least this fall. “People will be able to apply for it with their taxes in April 2010,” Fletcher told the Winnipeg Free Press in a report out of Ottawa. But Fletcher said because the tax credit was mentioned in the budget itself, the Canada Revenue Agency can administer it, even though it isn’t yet in legislation.

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