Home Renovation Tax Credit

Get up to $1,350 tax credit
for home improvements

Ontario - up to $1,350 Government of Canada tax credit. more
BC - up to $1,350 Government of Canada tax credit. more

Canadian homeowners can get up to $1,350 in tax credits for home renovations made between January 27, 2009 and February 1, 2010.

In February, 2009, the Canadian government included the Home Renovation Tax Credit (HRTC) as part of its Economic Action Plan.

The HRTC allows families to claim 15 per cent of home improvement expenses, between $1,000 and $10,000, on their 2009 income tax return. This gives families up to $1,350 in nonrefundable tax credits, which reduce the total amount of income tax they must pay.

2009 income tax return

The home renovation tax credit applies for 2009 income tax returns only. A line on the 2009 income tax return form will allow Canadian homeowners to enter the home improvement expenses they are claiming towards the credit. All home improvement expenses must be supported by valid receipts and documentation.

Home Renovation Tax Credit — how it works

Qualify for a Canadian government tax credit for home improvements.

Home renovations — improvements must be made to the Canadian homeowner’s principal residence or to another residence they own and use personally (such as a cottage or vacation home).
Renovation expenses — must be at least $1,000, and not more than $10,000.
Time frame — home improvement expenses must be incurred between January 27, 2009 and February 1, 2010.
Tax credit maximum — each Canadian family can claim up to $10,000 in home improvement expenses, for credit of up to $1,350 per family. A family is defined as an individual, or an individual and their spouse or common-law partner, plus children up to age 18.
Sharing tax credit — the home improvement tax credit can be shared by more than one family member.
Shared home — if more than one family shares one residence, each family can claim up to $10,000 in home improvement expenses, for credit of up to $1,350 per family.

Home improvements — Canada

The Home Renovation Tax Credit applies to Canadian home improvements that will become a permanent part of the home or its property. These home improvements include structural improvements such as home additions and interior renovations, and property improvements, such as garages, driveways and landscaping. All energy-saving renovations, including new furnaces, air conditioners and insulation, are eligible for the home renovation tax credit.

Examples of eligible renovations

Renovating a kitchen, bathroom or basement
Windows and doors
New carpet or hardwood floors
A new furnace, woodstove, boiler, fireplace, water softener, water heater or oil tank
Home ventilation systems (of a permanent nature)
Central air conditioner
Electrical wiring in the home (example: changing from
100 amp to 200 amp service)
Solar panels and solar panel trackers
Painting of interior or exterior of a house
Building an addition, garage, deck, garden/storage shed, fence
Re-shingling a roof
Solar heaters and heat pumps for pools (does not include solar blankets)
Landscaping: new sod, perennial shrubs and flowers, trees, large rocks, permanent garden lighting, permanent water fountain, permanent ponds, large permanent garden ornaments.
Associated costs such as installation, permits, professional services, equipment rentals and incidental expenses

See complete list of eligible and ineligible expenses for Home Renovation Tax Credit.

Home Renovation Tax Credit — benefits

Under the federal Home Renovation Tax Credit, Canadian families can reduce their taxes and make lasting improvements to their homes. The tax credit can be used for renovations to any property used by the taxpayer as a permanent or temporary residence, including homes, cottages and mobile homes.

It may be claimed by an individual, or by either spouse or partner in a common-law partnership. If more than one family owns an eligible residence (for example, a shared vacation home), each family can claim up to $10,000 in eligible renovation expenses.

The Canadian government estimates more than 4.6 million Canadian families will benefit from the tax credit. It also says the HRTC will help Canada’s economy, because the HRTC encourages homeowners to purchase home renovation products and services provided by Canadians and Canadian companies.

Eligible renovation expenses:

must be supported by appropriate documentation (receipts, invoices, shipping labels)
include the cost of labour and professional services, building materials, fixtures, rentals, and permits.
include energy-saving renovations made under the Canada ecoENERGY Retrofit-Homes program and provincial rebate programs.
are not affected by other government grants or rebates, such as the ecoENERGY Retrofit-Homes grants, that the homeowner may qualify for.
can also be claimed for the Medical Expense Tax Credit, if qualified.

Energy-saving renovations

Energy-saving renovations can permanently reduce a Canadian home’s energy use, saving as much as 50 per cent or more on home energy costs each year. By making energy-saving renovations in 2009, Canadians will receive maximum benefits for their renovations.

All energy-saving upgrades, renovations and retrofits are permanent improvements to a home, and qualify as expenses under the Home Renovation Tax Credit. Canadians can claim up to $10,000 in renovation expenses, including costs of energy-saving upgrades.

Energy-saving renovations eligible for HRTC

High-efficiency furnace
Energy Star central air conditioner
Ground- or air-source heat pump
Energy Star windows and skylights
Energy Star doors
Attic insulation
Wall insulation
Basement insulation
Low-flush toilet
Drain water heat recovery system
Electronic thermostats
Heat-recovery ventilator
Solar hot water heating system
Solar photovoltaic panel
Tankless hot water heater
Condensing gas hot water heater

Grants and rebates — Canada

But there’s more. Under the ecoENERGY Retrofit-Homes initiative, the Government of Canada is giving homeowners tax-free grants and rebates for making energy-saving renovations, such as installing new high-efficiency furnaces and central air conditioners, insulation, windows, hot water heaters and even low-flush toilets. Provincial governments, including those in BC and Ontario, offer more grants and rebates for energy-saving renovations.

The amount of money Canadian homeowners receive through government grants and rebates does not reduce or otherwise affect the amount of money they can claim for the Home Renovation Tax Credit.

That means if a Canadian homeowner spends $10,000 on energy-saving renovations, they will be eligible for $1,350 in tax relief. Depending on the renovations, they could receive up to $10,000 in combined tax-free grants and rebates from Canadian and provincial governments. That’s a total savings of $11,350, which could help significantly offset the initial cost of the renovations.

Grants for energy-saving renovations

These renovations are just some of the eligible expenses under the HRTC guidelines, and are eligible for grants and rebates from the Canadian government’s ecoENERGY Retrofit-Homes initiative. The amounts shown reflect the federal grant amounts. Ontario, BC, and other provinces also offer additional rebates for energy-saving renovations.

Install a new high-efficiency condensing gas furnace: up to $790 tax-free
Install a new geothermal heat pump system: up to $4,375 tax-free
Install a solar domestic hot water system: $1,250 tax-free
Insulate 100 per cent of your Canadian home’s exterior walls with greater than R-9 insulation: $1,875 tax-free
Insulate 100 per cent of your Canadian home’s basement walls with greater than R-23 insulation: $1,250 tax-free

Ongoing energy-saving

Energy-saving renovations have lasting benefits. They increase a Canadian home’s value with new, efficient equipment. They improve home comfort, by insulating against the outdoor temperature and providing efficient ways of heating and cooling the interior. They reduce the Canadian home’s energy use, which reduces annual energy costs. The result is savings that continue well after the calendar year is through.

Home Renovation Tax Credit — how it works

Canada’s Home Renovation Tax Credit lets you claim the cost of energy saving home improvements on your 2009 income tax return. This tax credit represents an extra savings on your home improvement costs, and is offered by the Government of Canada in addition to Canada ecoENERGY grants.

Up to $1,350 tax credit — Claim up to 15 per cent of your Canadian home improvement expenses on your 2009 income tax return, for a total credit of up to $1,350.
2009 income tax return — A line on your 2009 income tax return will allow you to claim home improvement expenses for the home renovation tax credit.
Eligible amount — Home improvement expenses between $1,000 and $10,000 are eligible for the home renovation tax credit
Eligible expenses — Claim Canadian home improvement expenses for lasting home improvements, including energy-saving renovations like a new furnace, heat pump, insulation, windows, doors and more. (See complete list)
Act now — Canada’s Home Renovation Tax Credit applies for home improvement work performed, or goods acquired, after January 27, 2009 and before February 1, 2010.
Keep your receipts — You must include valid receipts and invoices for all home improvements claimed on your 2009 income tax return.
Grants and rebates — Money received from the Canada ecoENERGY grant program, the LiveSmart BC program, or the Ontario Home Energy Savings program, is tax-free and does not affect the amount you may claim for the home renovation tax credit.

Many energy-saving home improvements qualify you for Canada ecoENERGY grants.

Get started now

To qualify for ecoENERGY and provincial grants and rebates you must have a home energy assessment before you renovate.

More government grants

Grants + rebates

Homeowners who qualified before March 31, 2010, can choose from a shopping list of Government of Canada ecoENERGY grants for home energy renovations:

Furnaces — high-efficiency gas or oil, up to $790
Central air conditioners — replacement $250
Hot water heaters — condensing gas $375
Hot water heaters — tankless/instantaneous gas, condensing-type $375
Boilers — high-efficiency gas or oil $750
HRV — heat recovery ventilator $375
Solar — hot water system $1,250
Heat pumps — air-source heat pump which doubles as air conditioner $500
Geothermal — ground- or water-source heat pumps which are energy-efficient heating and cooling systems up to $4,375

Canadian homeowners can also get ...

Attic or roof — insulation up to $750
Exterior wall — insulation up to $1,875
Basement — insulation up to $1,250
Crawl space — insulation up to $1,000
Air sealing — for your home up to $430
Windows & doors — $40 for each replacement unit
Toilets — $65 for each replacement unit

And there’s more.

Government grants

Take advantage of Canadian government grant + Ontario or British Columbia rebate programs for your home energy renovations.

Ontario Home Energy rebates — Ontario homeowners can get up to $5,000 in home improvement grants through the Ontario government’s Ontario’s Home Energy Savings program, which is in effect until March 31, 2011. Click here for more
LiveSmart BC rebates — BC homeowners are eligible for up to $5,000 and more in home energy grants through the BC government’s LiveSmart BC rebate program, which is in effect until March 31, 2011. Click here for more
Home Energy Audits — To qualify for Ontario Home Energy Savings grants, or LiveSmart BC rebates, homeowners must get a home energy audit before and after their home improvement work. Get up to $150 cash back on the cost of your first energy audit with a rebate from Ontario’s Home Energy Audit program. In British Columbia, the LiveSmart BC program also subsidizes the cost of your first home energy audit. Click here for more

Easy to start — Canada

All you do is make one call — 1-877-732-9888 — to book a home energy audit with a HomePerformance Energy Advisor – your first step to qualifying for provincial rebates for home energy renovations.

Book your energy audit with a certified HomePerformance Energy Advisor. Your Energy Advisor will help you make the right energy saving choices for your Canadian home. Click here

Government grants — conditions

Some conditions apply.

Home energy audit — To qualify for Ontario Home Energy grants and LiveSmart BC rebates you must get an ecoENERGY home energy assessment before and after your upgrades. You will receive grants for improvements started after your first audit.
Renovations — You can complete the improvements yourself or hire a contractor. We recommend you document your renovations with receipts, photos and product literature to be sure you get full credit for all improvements.
18 months — You need to apply for Ontario Home Energy grants and LiveSmart BC rebates within 18 months of your first audit, or before March 31, 2011, whichever comes first. Use the opportunity to complete as many upgrades as possible.
Existing homes only — Newly built homes occupied for less than six months do not qualify for Ontario Home Energy grants and LiveSmart BC rebates. Once a newly built home has been occupied for more than six months, there is no limit to how old a home can be to qualify for government rebates.
Local codes & by-laws — All improvements or renovations must meet Canadian local building codes and by-laws. Pay special attention to the placement of vapour barriers when adding insulation to the building envelope. Before undertaking improvements or renovations, find out about the appropriate products and installation techniques to ensure that your home’s building envelope and indoor air quality will not be compromised.
Higher efficiency — To qualify for Ontario and BC government grants, any new equipment must have a higher efficiency than that of the original equipment it replaces.
Questions about eligibility — If you are not certain about the eligibility of your house, or any specific renovations you are planning, you should request clarification from the Ontario and BC governments. Homeowners are responsible for clarifying that their house and planned improvements are eligible for Ontario Home Energy grants and LiveSmart BC rebates before undertaking any upgrade work and related expenses.

More rebates & incentives

Ontario Home Energy rebates

Ontario homeowners can get cash back for your first ecoENERGY assessment with a Home Energy Audit rebate from the Ontario government.

Home Energy Audit program — Rebate of up to $150 of the cost of your first energy audit.
Up to $150 — To be eligible for an Ontario Home Energy Audit rebate you must receive an ecoENERGY assessment from a certified energy advisor.
You are not required to carry out a renovation to your Ontario home to receive the Ontario Home Energy Audit rebate.
Your advisor applies for the Ontario Home Energy Audit rebate on your behalf.

As an Ontario homeowner, you can qualify for tax-free rebates from the Government of Ontario.

Ontario Home Energy Savings grants — Get rebates of up to $5,000 for home energy improvements from the Ontario government. Click here
You begin — by completing an ecoENERGY assessment with a certified energy advisor. You are eligible for a rebate of up to $150 on the cost of your first ecoENERGY assessment (see Home Energy Audit program, above).
Your advisor — will apply for Ontario’s Home Energy Savings rebates on your behalf, after you have completed your energy-efficient renovations and your Ontario home has been re-assessed. You have 18 months from the date of the first energy audit to make some or all of the improvements your advisor recommends for your Ontario home, and complete a second audit.
Ontario Rebates List — Shows tax-free grant amounts from the Government of Ontario. Click here

BC rebates

BC homeowners can qualify for tax-free rebates from the Government of British Columbia.

LiveSmart BC rebates — Get tax-free rebates of up to $5,000 for home energy improvements from the BC government. Click here
LiveSmart BC audit — The BC government subsidizes the cost of your first home energy audit. This subsidy is subject to available funds. Click here
Other BC rebates — BC homeowners qualify for additional $2,000 rebates from Solar BC when installing solar hot water systems. There are additional rebates for low-flow toilets, and even more grants, rebates and incentives from local governments and energy utilities.

Your advisor can help

By choosing a HomePerformance Energy Advisor to do your home energy audit, you’ll receive information on government home energy renovation grants and rebates, and other energy improvement incentives available in your area.

Enjoy all the benefits

Do it right

Each Canadian home has its own specific energy-savings needs, and yours is no different. The right renovations add up to big savings. By following the expert advice of a Canada-certified energy advisor, you’ll make the energy renovations or "retrofits" that are right for your home — and help improve your energy costs and the Canadian environment.

Three easy steps

Call for a home energy audit ... 1-877-732-9888
Choose the right renovations for you
Save energy and money

Energy renovations help ...

Save energy — Your home won’t need as much energy to stay comfortable.
Save money — Less energy used = lower energy costs for you.
Grants + Rebates — Qualify for tax-free provincial rebates for home energy renovation, sent directly to you.

And that’s not all. Here are more benefits ...

Greater comfort – Your home will be warmer in Canadian winters, cooler in Canadian summers.
Better health – You’ll eliminate indoor health concerns like chills and drafts, and keep your home free of airborne pollutants and pollen.
Increased home value – By making energy renovations, you’ll increase the resale value of your home. An official Canada EnerGuide label proves you’ve done the work.
Simpler home maintenance – No more scrubbing moldy windowsills! Keep airborne dust and dirt outside where it belongs.

When you improve your home in Canada, you make a difference to the rest of the world. You’ll help address important global issues like ...

Climate change – Energy renovations help reduce your Canadian home’s greenhouse gas emissions, while protecting you from the effects of climate change and extreme weather.
Energy security – By reducing your Canadian home’s energy use, you’ll be less deeply affected by energy price fluctuations and supply interruptions.

And there’s even more. Click here to learn how Canadian homeowners like you are saving thousands of dollars and tonnes of greenhouse gases every year, by making the right energy-saving home renovations. Canadians can make a difference.

Get started today!

Learn more about Renovation Grants in Canada ...

Home Renovation

Window - replacement
Door - ENERGY STAR
Attic, roof - insulation
Exterior wall - insulation
Basement - insulation
Crawl space - insulation
Air sealing - air tightness, blower door test
HRV - heat recovery ventilator

Equipment

Furnace - high efficiency
Hot water heater - tankless, high efficiency
Air conditioner - central, window replacement
Heat pump - air source
Geothermal - heat pump
Boiler - gas, oil
Solar - hot water system
Toilet - efficient low flush

To qualify you need a Canadian home energy audit before your renovations. For more information on tax-free government grants + Ontario and BC rebates – Click here