Those who used Home Renovation Tax Credit saved about $700
Almost 10% of Canadians used the Home Renovation Tax Credit for the 2009 tax year, each saving an average of $700 each according to new numbers posted on the Revenue Canada website. The Home Renovation Tax Credit is attributed with increasing renovation spending in by over 18% between 2009 and 2010.
The goal of the HRTC was to stimulate the economy and create jobs for contractors, renovators and construction workers.
“The (tax credit) increased economic activity, created jobs and demonstrated confidence among consumers using professional renovators,” said the president of the Canadian Home Builders’ Association in a press release. “It’s done a lot of good for our industry and for consumers and obviously has kept the industry stronger in these tough times and in job creation as well.”
Only 75% of the Home Renovation Tax Credit Used
Approximately 4.6 million Canadians were expected to tale advantage of the Home Renovation Tax Credit when it was first introduced by Finance Minister Jim Flaherty, but only approximately $2.1 billion of the allotted $3 billion was used.
Home improvement store RONA had also created their own incentive program that could be combined with the HRTC. Over 18,000 people applied for the RONA program, totaling over $140 million in Canadian renovation projects. In April 2010, RONA launched a permanent incentive program because of the first program’s popularity.