REGINA — New legislation in Saskatchewan aims to increase home renovation work by introducing the Saskatchewan Home Renovation Tax Credit.
The non-refundable tax credit could save homeowners up to $2,100 in provincial income tax by claiming a 10.5 per cent tax credit on up to $20,000 of eligible home renovation expenses. Covered expenses include labour and professional services, building materials, fixtures, equipment rentals and permits.
Only work done on a primary residence in the province is covered. Renovation expenses must be incurred between Oct. 1, 2020 and Dec. 31, 2022, and the renovation must be substantially completed by Dec. 31, 2022.
“This new tax credit is an incentive to spend, build and hire,” said Deputy Premier and Finance Minister Donna Harpauer in a press release. “Combined with the PST reduction on new home construction in the June 2020 budget, this new credit will increase construction activity in the province, create jobs and help drive Saskatchewan’s economic recovery.”
The tax credit would not cover items like furniture, appliances, hot tubs, tools or maintenance services such as carpet or furnace cleaning. Homeowners can split the tax credit among eligible family members, but the total amount claimed cannot exceed the maximum allowable.
The Saskatchewan Home Renovation Tax Credit will be administered by the Canada Revenue Agency (CRA) as part of the Saskatchewan personal income tax system. CRA is tasked with developing the necessary forms and filing instructions in the coming months.
The new tax credit is estimated to cost $124 million over two years.
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