Home Reno Tax Credit News

By MARKUS ERMISCH, Calgary Sun
Tuesday Jan 19

With the deadline of the home renovation tax credit approaching in less than two weeks, it’s still unclear whether Ottawa plans to extend the hugely popular program.

Just before Christmas, Premier Stephen Harper had vaguely hinted he’d like to extend the program as part of the government’s plan to stimulate the economy.

But then Harper suspended Parliament. And any added clarity about the fate of the home reno tax credit was suspended along with it.

“We have no word on (the future of the home reno tax credit). As it stands now, it’s running out at the end of the month,” said Finance spokesman David Barnabe when asked about a possible extension, and whether Parliament would be needed to do so.

“It wouldn’t really be proper for me to speculate on something hypothetical.”

Calgary’s city hall, however, would like to see the program continue beyond the Jan. 31 deadline.
“I think it’s a great program,” said David Watson, general manager of planning, development and assessment at city hall. “So sure — I think it would be a great idea if they could extend it,”

The home reno tax credit was introduced last year to infuse Canada’s ailing economy with cash during the recession. Eligible renovation expenses could be deducted from taxes, leading to savings of up to $1,350.

In Calgary, the program has bolstered the residential construction sector during one of the worst recessions in recent memory. City hall issued building permits worth $3.66 billion last year, down 9% from 2008. But the tax credit has helped support the construction sector last year, Watson said, and helped prevent it from dipping further. Watson pointed out that low interest rates were also an important factor.

Linda Duncan, an Edmonton NDP MP, said her party is still discussing whether it would support an extension of the home reno tax credit should Finance Minister Jim Flaherty include it in his next budget. “This is, obviously, not the biggest item on the agenda for the budget,” she said. “The biggest is unemployment. But it’s an aspect of employment. So it will be one of many items that we’ll take a look at, and chances are a lot of people will be supportive of it.”

Mark
www.MajecAccounting.com