As the provincial election gets underway, the Saskatchewan Party is promising a home renovation tax credit that it says will help homeowners and provide a boost to the economy.
“In this year’s budget, we reduced the PST on new home construction. We also want to provide a break to those who are fixing up their existing home,” Sask. Party Leader Scott Moe said in a news release announcing the proposed credit.
Under the credit, homeowners would be able to claim a 10.5 per cent tax credit on up to $20,000 of eligible home renovation expenses incurred between Oct. 1, 2020 and Dec. 31, 2022, saving them up to $2,100, the release said.
Expenses eligible for the proposed tax credit include permanent additions to a home, but not furniture, appliances or maintenance such as furnace or carpet cleaning.
Hot tubs and tools and would also not be covered under the credit, the release said.
“It’s an incentive to spend, build and hire, which helps drive a strong recovery,” Moe said.
Homeowners taking advantage of the proposed credit would be able to claim $20,000
in renovation costs on their 2021 and 2022 income tax returns for a maximum non-refundable credit of $2,100.
To qualify for the credit, homeowners would need to spend at least $1,000 on renovations.
Also under the Sask. Party plan, the maximum amount which can be claimed varies by tax year.
Between $1,000 and $12,0000 could be claimed on a homeowner’s 2021 provincial income tax return for renovations to a primary residence undertaken between Oct. 1, 2020 and Dec. 31, 2021.
Up to $9,000 in renovation expenses could be claimed on a homeowner’s for working happening between Jan. 1 and Dec. 31, 2022.
The Sask. Party pegs the cost of the proposed cost of the credit at $124 million over two years.