If you’ve bought a home in Canada that needs some work, or if you’re considering purchasing a fixer-upper, you should know about Canada’s new Home Renovation Tax Credit (HRTC).

Renovating your kitchen? Putting in new carpet? Replacing your furnace? You can claim the 15 percent HRTC for these projects or other similar work done on your primary residence between January 27, 2009, and February 1, 2010.

The credit applies to expenditures over $1,000 but not more than $10,000. That means that the maximum credit is $1,350 ($9,000 x 15%). It won’t amount to much if you’re putting in a flashy gourmet kitchen, but it certainly won’t hurt either.

Of course, you need to file an income tax return in Canada in order to claim this tax credit. Claim the HRTC on your 2009 tax return.

More information about the tax credit program is available from the Canada Revenue Agency.

Photo ©Carolyn B. Heller