In the Federal Government's January 2009 budget they included a Home Renovation Tax Credit worth 15% of the cost of a home renovation project. The incentive is available for projects worth more than $2000 and a maximum of $1350 can be claimed on the first $10 000 of a home renovation project.
The maximum amount is calculated based on the inability to claim the credit on the first $2000 of the project. Therefore $1350 is 15% of $8000 ($10 000 less the first $2000).
This incentive is only available until February 1, 2010.
More InformationSee Canada Revenue Agency's
Home Renovation Tax Credit Webpage