The Canadian Hot Tub Industry recently received confirmation from the Federal Government, "INCOME TAX RULING DIRECTORATE" - hot tubs that are permanently positioned and hard wired through to the main electrical panel of the house will qualify for the Home Renovation Tax Credit, to a maximum credit of $1350.00
Renovation expenditures on an eligible dwelling or the land on which it sits will qualify for the HRTC if the renovation is of an enduring nature and integral to the dwelling. For example, homeowners will be able to claim expenditures for major renovation projects, such as finishing a basement, renovating a kitchen or building an addition. Costs associated with such projects will be eligible, including costs for permits, professional services, equipment rentals and incidental expenses. The costs of routine repairs and maintenance, appliances, audio-visual electronics and financing will not be eligible. A dwelling will generally be considered eligible if it is owned and used for personal purposes. Examples of eligible dwellings include a house, a cottage or a condominium unit.
The HRTC will complement support provided by the federal government for Canadians to undertake energy-saving home improvements. Federal grants paid through the ecoENERGY Retrofit program will not reduce the value of claims made for expenditures under the HRTC. Eligible renovation expenses claimed under the Medical Expense Tax Credit may also be claimed under the HRTC.
How It Works
Individuals can now undertake renovations that are eligible for the HRTC and may claim the HRTC when filing their income tax returns for 2009. They will need to keep receipts for expenditures.
VISIT www.actionplan.gc.ca FOR MORE DETAILS
Home Renovation Tax Credit - The HRTC is a 15-percent non-refundable tax credit that will apply to eligible home renovation expenditures for work performed or goods acquired after January 27, 2009, and before February 1, 2010, pursuant to contracts entered into after January 27, 2009. The credit may be claimed 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.
