Have you heard? Canada has introduced a new tax credit for home renovations! Although it is temporary, we can get 15% tax credit on expenses between $1000-$9000. The aim is to promote economic activity by increasing the demand for labour and supplies.

And retailers may be offering other incentives to go with this new credit. For example, Rona (PDF) will give cash back of up to $750 for eligible purchases and services. So save your receipts!

Diana and I have been wanting to redo our kitchen and bathroom(s), especially since our condo suite failed to sell last spring. A lot of our original cabinets are falling apart. We have both really been into interior design and decor lately, so it sounds like the perfect time for home projects. Sweet!

More details on eligibility of expenses:

Eligible

• Renovating a kitchen, bathroom, or basement
• New carpet or hardwood floors
• Building an addition, deck, fence or retaining wall
• A new furnace or water heater
• Painting the interior or exterior of a house
• Resurfacing a driveway
• Laying new sod

Ineligible

• Furniture and appliances (refrigerator, stove, couch)
• Purchase of tools
• Carpet cleaning
• Maintenance contracts (furnace cleaning, snow removal, lawn care, pool cleaning, etc.)