Government programs provide reno incentives
June 6, 2009
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Stephen Dupuis
Homeowners have a very rare, albeit time-limited opportunity to triple-dip on some federal and provincial government assistance programs designed to stimulate the economy while reducing energy consumption, greenhouse gas emissions and your heating, cooling and electrical bills.
Between the federal Home Renovation Tax Credit, the federal EcoEnergy Retrofit-Homes program and the provincial home energy retrofit program, there are three pools of grant money available to homeowners.
I'll start with the federal EcoEnergy program because it has a prerequisite home energy audit requirement which will determine which retrofits are eligible for the maximum grant of up to $5,000. The energy audit will identify the inefficiencies in your home, whether windows, insulation, appliances (furnace, hot water heater, air conditioner) and the federal government will issue grant money based on retrofitting the components identified through the pre-audit, subject to a post-audit.
Grants range from $650 for a super high-efficiency furnace to $315 for an Energy Star hot water heater to $40 per window unit. Insulation grants range depending upon the amount of space being insulated (ceiling, walls, basement) and the R-value attained. For example, insulating the entire basement to R23 levels gets you $1,250.
Ontario homeowners are fortunate that our provincial government has replicated the federal program and upped the ante by kicking in $150 towards the cost of the energy audit itself, so Ontarians can recover an additional $5,150 (total $10,150) for green renovations.
Meanwhile, the Home Renovation Tax Credit program was announced in late January of this year to stimulate jobs and spending in the home renovation sector. Under the program, homeowners can get a tax credit of up to $1,350 on renovation expenses that are more than $1,000 up to $10,000. You can spend more than $10,000, but the tax credit caps out there. Still, that's not bad, considering you were likely considering the project anyway.
Examples of eligible expenses including renovating a kitchen, bath or basement, new carpet or hardwood floors, building an addition, garage or deck, re-shingling a roof, installing a new furnace, fireplace, water softener or hot water heater or painting. Ineligible expenses would include furniture, appliances or audio-visual systems, cleaning, maintenance contracts and financing costs.
The work can be done by a professional contractor or you can do it yourself. In the case of contract work, you can claim the value of the contract, whereas if you do it yourself, you can only claim the materials you purchase, not your labour. Unless you have the time, talent and tools to do the work, we suggest you hire a contractor. To find one, try visiting renomark.ca.
RenoMark is a national consumer confidence program initiated by BILD to help differentiate the renovation pros from the schmoes. Our professional contractors have committed to the Code of Ethics that applies to every local homebuilders' association member across Canada, plus a renovation-specific Code of Conduct. Under that Code of Conduct, RenoMark contractors must offer a detailed, written scope-of-work, carry all applicable licences and insurance and offer a minimum two-year warranty.
It is important to note that the Home Renovation Tax Credit applies to work performed or goods acquired before Feb. 1, 2010. This is your perfect opportunity for greening your reno, which means you need to book that energy audit as soon as possible to ensure those components of your renovation are eligible for grant money. To find a certified energy evaluator in your area, visit oee.nrcan.gc.ca.
Stephen Dupuis is president and CEO of the Building Industry and Land Development Association. The views expressed are those of the president. Email: president@bildgta.ca.
Toronto Star