Canadians can receive up to $1,350 in tax credits on home improvements purchased before February 1, 2010; and put their tax dollars back into their home.

What is the HRTC?

Under proposed changes, the HRTC is a non-refundable tax credit based on eligible expenditures incurred for work performed, or goods acquired, after January 27, 2009, and before February 1, 2010. The HRTC can be claimed when filing your 2009 tax return.

To be eligible for the HRTC, claims must be for renovations and alterations of an enduring nature and that are integral to the eligible dwelling (such as your home or cottage), or the land that forms part of the eligible dwelling.

How is the HRTC calculated?

The 15% non-refundable tax credit can be claimed on eligible expenditures of more than $1,000 but not more than $10,000. The maximum tax credit that can be claimed to reduce your federal income tax is $1,350. However, if the total of your non-refundable tax credits are more than your federal income tax, you have no federal income tax to pay, and you will not receive a refund for the HRTC.