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: Will the eligible period for the HRTC be extended?
Position: No. The Minister of Finance has publicly commented that the Government has no plans to extend the HRTC.
Reasons: The HRTC provides individuals with a temporary 15% non-refundable income tax credit on eligible home renovation expenditures for services received or goods acquired after January 27, 2009, and before February 1, 2010. However, expenditures for services received or goods acquired under agreements entered into before January 28, 2009, do not qualify for the HRTC.
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Dear XXXXXXXXXX :
The office of the Honourable Jean-Pierre Blackburn, Minister of Veterans Affairs and Minister of State (Agriculture), forwarded to me a copy of your correspondence, which I received on February 5, 2010, regarding the home renovation tax credit (HRTC). In particular, you ask whether the HRTC will be extended.
The legislation regarding the HRTC has been enacted and is contained in section 118.04 of the Income Tax Act. The HRTC provides individuals with a temporary 15% non-refundable income tax credit on eligible home renovation expenditures for services received or goods acquired after January 27, 2009, and before February 1, 2010. However, expenditures for services received or goods acquired under agreements entered into before January 28, 2009, do not qualify for the HRTC. Taxpayers can claim this credit for the 2009 tax year on eligible expenditures exceeding $1,000, but not more than $10,000, which will result in a non-refundable tax credit of up to $1,350.
The Canada Revenue Agency is responsible for administering the HRTC as enacted, whereas the Department of Finance Canada is responsible for developing and evaluating tax policy and amending tax law. Recently, the Honourable James M. Flaherty, Minister of Finance, publicly commented that the Government has no plans to extend the HRTC.
I trust that the information I have provided is helpful.
Yours sincerely,
Keith Ashfield
Minister of National Revenue
William King
(905) 721-5194
2010-035673
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