Everything You Need To Know About The Home Renovation Tax Credit
October 13, 2022
Adopting eco-friendly and sustainable practices holds great significance for a lot of people. Professional solar panel installers can help you by installing residential solar panels as it is one of the best ways to contribute towards sustainability goals and cut down energy bills.
The Government of Saskatchewan offers various incentives and grants to facilitate people to go eco-friendly, regardless of whether you are a first-time homeowner or are thinking of renovating your property to make it more sustainable. One such incentive is the Home Renovation Tax Credit.
Keep reading this blog to learn all about it.
An Overview Of The Home Renovation Tax Credit
The Home Renovation Tax Credit is a non-refundable tax credit offered by the Government of Saskatchewan. It allows homeowners to save up to $2,100 in provincial income tax by getting up to a 10.5% tax credit on $20,000 of eligible home renovation expenses. Some of the most prominent renovation expenses are labour costs, building materials, permits, equipment rental, and solar panels.
The Canada Revenue Agency (CRA) works with the personal income tax system and authorities of Saskatchewan to manage the Home Renovation Tax Credit. You can easily claim this tax credit in your annual tax return.
The Importance Of The Home Renovation Tax Credit
People have become much more aware of the importance of eco-friendliness and the impact of climate change on the world. As a result, a lot of people want to play their role in adopting sustainable practices as much as possible.Installing residential solar panels is definitely a reliable way to do it, but old houses might not have a suitable design and structure to install solar panels. In such a situation, renovating the house becomes important.
Similarly, it is possible that you might want to renovate your house in Saskatchewan but might not have enough budget to do it. The good thing is that incentives like the Home Renovation Tax Credit are available to help you get through the renovation process and get a significant discount on the installation of residential solar panels.
Also Read: What Are The Pros And Cons Of Solar Panels?
How To Qualify For The Home Renovation Tax Credit
You can perform home renovations for a wide range of reasons, such as increasing the safety of your house, installing a wheelchair ramp, fixing the old structure, widening doors, and installing solar panels.
The motivation behind renovating your house does not matter, as you can qualify for the Home Renovation Tax Credit in your annual tax returns as long as you have renovated your house for one reason or another.
However, there are some rules and regulations set by the CRA and the Government of Saskatchewan that you must fulfill to get this tax credit. These rules are:
- You must have renovated your principal residence, which is located in Saskatchewan.
- You have paid the renovation expenses between October 1, 2020, and December 31, 2022. Note that the renovations should be completed by December 31, 2022.
- The house must be registered with your name either alone or jointly with another individual at the time of renovation.
- You or someone related to you, such as your spouse, children, or common-law partner, must be inhabiting the house during the eligibility period.
It is important to note that you will be expected to produce the relevant receipts, such as the cost of residential solar panels or the labour cost. These receipts will prove that the renovation expenses you have incurred are during the eligible period of October 1, 2020, and December 31, 2022.
Moreover, the receipts should have clear details about the vendor/contractor, the exact date when the services or products were bought, a description of the renovation work performed, and the total amount paid.
Examples Of Eligible Expenses
The following are some of the many renovation expenses for which you can claim the Home Renovation Tax Credit:
- Renovation of a kitchen, attic, or bathroom
- Fixing the doors
- Installing new flooring or carpet
- Renovating the roof
- Installing residential solar panels
- Painting the exterior or interior of your residential property
- Buying and installing new technical equipment such as water heaters, solar panels, and furnace
Examples Of Ineligible Expenses
There are certain things that you might think of renovating, but don’t qualify for this tax credit. Such ineligible expenses are:
- Furniture and electrical appliances such as a sofa, refrigerator, or stove
- Audio-visual electronics
- Regular repair and maintenance, such as carpet cleaning
The bottom line is that Home Renovation Tax Credit is one of the many incentives offered by the Government of Saskatchewan to facilitate people in upgrading their houses and improving their quality of life.
You should definitely consider renovating your house and installing residential solar panels as incentives such as the Home Renovation Tax Credit make it easy and financially feasible.
About Sundawg Solar
Sundawg Solar is a solar installation company in Saskatchewan. We provide a wide range of services related to installing residential solar panels as well as large-scale commercial solar power systems.
Incentives like the Home Renovation Tax Credit make it easier for people to benefit from residential solar panels. If you want to enjoy the benefits of solar panels, you can contact us anytime.