Quebec Home Improvement And Renovation Tax Credit (HRTC)

If you meet certain eligibility requirements, you may be entitled to a refundable tax credit for the 2009 taxation year for expenses incurred under a residential renovation agreement entered into in 2009 for home improvements or renovations.

The tax credit is equal to 20% of the eligible expenses in excess of $7,500. The maximum amount of eligible expenses is $20,000 for a maximum credit of $2,500.

Calculator

To obtain an estimate of the tax credit for home improvement and renovation that you could be entitled to for the 2009 taxation year, use the calculator available on the website of the Ministère des finances.

Eligibility requirements

To be eligible for the refundable tax credit for home improvement and renovation, you must:

* Own an eligible residential unit located in Québec
* Have the qualifying work for improvement or renovation carried out at your principal place of residence
* A qualified contractor must be hired to carry out the work under the terms of an agreement entered into after December 31, 2008 and before January 1, 2010.
* The expenses incurred to carry out the work must be paid no later than June 30, 2010.

Eligible residential units

An eligible residential unit is a residence built before 2009. The individual who incurs the home improvement or renovation expenses must be the owner (or co-owner) at the time the expenses are incurred. The residential unit must not only be the owner's principal place of residence, but also:

* an individual house
* a manufactured home or a mobile home permanently installed
* a unit in a building held in divided co-ownership
* an apartment in a building held in undivided co-ownership or held by a sole owner

Qualifying work

Qualifying work that gives entitlement to the refundable tax credit for home improvement and renovation consists of:

* the renovation, modification, improvement, conversion or expansion of an individual's eligible residential unit, including the addition of structures adjoining or incidental to the unit
* the work needed to restore a lot to its condition before the work described above was carried out

Examples of qualifying work

Division of rooms (knocking down walls or addition of partitions)
Finishing of a basement, attic or garage
Installation of a fireplace, a heat pump or an air conditioning system
Installation of an alarm system or home automation system
Insulation (including for a garage)
Replacement of the plumbing, electrical system, heating system, air exchange system
Replacement of the roofing, rainwater gutters and chimney
Replacement of doors and windows
Replacement of sewage treatment systems (septic tanks and septic field)
Renovation of a kitchen, bathroom, washroom
Expansion of a house built before 2009
Construction work on structures adjoining or incidental to a house built before 2009