Canadian Home Improvement Tax Credit for Retailers

Home Renovations Tax Credit

There are big opportunities  in the 2009 Canadian Federal Budget to help retailers boost their business. In the 2009 Canadian Federal Budget announced on January 27th, The Honourable Jim Flaherty, Finance Minister, included a Home Renovations Tax Credit (HRTC).

How the Temporary HRTC Will Work

The proposed HRTC will provide a temporary 15-per-cent income tax credit on eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010, pursuant to agreements entered into after January 27, 2009. The credit may be claimed for the 2009 taxation year on the portion of eligible expenditures exceeding $1,000, but not more than $10,000, and will provide up to $1,350 in tax relief.

Eligible expenditures include:

*    Renovating a kitchen, bathroom or basement

*    New carpet or hardwood floors

*    Building an addition, deck, fence or retaining wall

*    A new furnace or water heater

*    Painting the interior or exterior of a house

*    Resurfacing a driveway

*    Laying new sod

If your business provides any of these products and/or services, what are you doing to help promote this new tax credit to your potential customers?

Check out the details for yourself by reading the Canadian 2009 Federal Budget. HRTC starts on Page 127.

In our business (home and garden centers and landscape services), we’re already designing signage and brochures to help educate our customers and clients (as well as our front line staff). This is a great opportunity and a real win-win for your customers and your business!

Andy

Click here for Part II of this post