New Federal Home Tax Credit combines with other grants to provide Ontarians up to $11,350 for a single home improvement project
Oakville, ON January 29, 2009 -- Homeowners have the chance to “double dip” to the tune of $6,350 for the same home renovation project from two different programs announced in the Federal Budget, says an Oakville home renovations company.
Suntech Renovations spokesman Catherine Marshall says the Home Renovation Tax Credit and ecoENERGY Retrofit Grant allow a homeowner to make the same claim to both programs. The maximum benefit under the programs are $1,350 and $5,000 respectively.
In addition, the federal announcement is particularly advantageous to Ontarians because the provincial government matches the ecoENERGY program with a maximum of a $5,000 grant. As a result, up to $11,350 is available to Ontarians for a single project.
“This is a substantial amount of money that is available between now and February 2010,” said Marshall, who is the Vice-President of Suntech Renovations. “Those who have been sitting on the fence considering a home improvement project should act this year.”
Here’s an example of how the program can work: if new energy efficient windows replace aging and drafty ones for $10,000, the homeowner is eligible for the Home Renovation Tax Credit of 15% on amounts up to $10,000 with a $1,000 deductible. That will result in a tax reduction of $1,350 on their 2009 return. In addition, the homeowner is eligible to apply for a $600 grant for the average house under the combined ecoENERGY and Ontario Home Energy Savings program. “That’s almost a 20% saving on a project that will make your house look great and reduce your energy bills for years to come,” said Marshall.
She added that when she heard about the tax credit and ecoENERGY grant she wondered if the government might preclude submitting the same expenses to both programs. But close reading of details of the program on the budget website yielded the following information: “The Home Renovation Tax Credit will not be reduced by any other tax credits or grants to which a taxpayer is entitled under other government programs.”
The Home Renovation Tax Credit applies to most home projects, while the ecoEnergy program only applies to improvements that increase the energy efficiency of your home. Other examples of home improvements that qualify for both government programs include new energy efficient heating or cooling systems, upgrading to an instantaneous hot water heater, or increasing the insulation in your home.
“There are only a few aspects of a home renovation project that don’t qualify for the tax credit,” said Marshall. “These are items that are removable from the home - like new appliances or window coverings - or regular maintenance items like carpet or duct cleaning.” Also excluded from the program are the costs of tools to do renovations, and interest charges on a project.
However, eligibility for the ecoENERGY program is more stringent, she said. The first part of the process is to get an energy efficiency audit done on your house. The cost is typically around $300 and the government provides a $150 rebate. The renovator then documents the various aspects of the home improvement project undertaken to increase energy efficiency. Following the project, a second audit determines that the work was undertaken properly and scores the energy efficiency improvement. At this point, the grant application goes in.
The greater complexity associated with the ecoENERGY program should not stop homeowners from taking full advantage of both programs, said Marshall. “Contractors are becoming more informed about the technical aspects of the program and can help guide homeowners through it.”
About Suntech Renovations:
Suntech Renovations has operated in Oakville, Ontario since 1991 providing high quality and professional home improvements. During its 18 year history, Suntech has developed a reputation for reliability and professionalism. Suntech's dedication to quality results in fewer projects undertaken in order to provide the individual attention required to complete each project in a professional, caring manner. Suntech is licensed and insured, and complies with all construction industry regulation and are members of the Registry of Professional Contractors of Ontario. Suntech’s founder, Mike Manning, has a three-year diploma in architectural technology and is a licensed carpenter. . Suntech is a sister company to Greenbilt Homes of Oakville, a custom home builder focused on environmentally sustainable and energy efficient housing which was founded in 2008. In conjunction with its sister company, Greenbilt Homes, Suntech offers home energy retrofits.
Contact:
Catherine Marshall, Vice President
Suntech Renovations
905-849-4323
www.suntechrenovations.ca
-30-
Send an email to: catherine@suntechrenovations.ca
Keywords: home renovations, home improvements, windows, energy efficiency, energy retrofit, Oakville Ontario