Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: Whether certain electrical services would qualify for the HRTC?
Position: Presently there is no legislation, however, the budget documents have stated that expenditures will qualify for the HRTC if they relate to a renovation or alteration of an eligible dwelling and the renovation and alteration is of an enduring nature and integral to the dwelling. Such expenditures include the cost of labour and professional services.
Reasons: 2009 Federal Budget; Department of Finance HRTC pamphlet
XXXXXXXXXX
Dear XXXXXXXXXX :
Thank you for your email received on January 30, 2009, asking whether the following electrical services would qualify for the new home renovation tax credit (HRTC):
- Electrical service panel upgrades
- Ceiling fan/light fixture replacements
- New lighting installations
- Changing, moving, adding switches and receptacles
- Bathroom fan installations
Presently, there is no proposed legislation regarding the new HRTC, which was introduced in the federal budget tabled on January 27, 2009. However, the Honourable James M. Flaherty, Minister of Finance, announced in Annex 5 of the budget documents that expenditures will qualify if they relate to a renovation or an alteration of an eligible dwelling, including land that forms part of the eligible dwelling, and the renovation or the alteration is of an enduring nature and is integral to the eligible dwelling. Such expenditures would include the cost of labour and professional services, building materials, fixtures, equipment rentals, and permits.
Examples of expenditures that will qualify for the HRTC include the renovation of a kitchen, bathroom, or basement. Generally, work performed by electricians for such expenditures will also qualify for the HRTC.
Further information on the credit is available on the Canada Revenue Agency and the Department of Finance Canada Web sites at www.cra.gc.ca/hrtc and www.budget.gc.ca/2009/pamphlet-depliant/pamphlet-depliant3-eng.asp, respectively.
I trust that the information provided will be helpful.
Sincerely,
Jean-Pierre Blackburn, P.C., M.P.
Nerill Thomas-Wilkinson
(905) 721-5187
2009-030949
February 18, 2009
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