Improve your home. Pay fewer taxes. It sounds like a match made in renovation heaven.
The federal government's recent announcement to offer a tax credit to spruce up our homes may have some of us thinking -- just what other incentives are available for renovations?
Manitoba Home Builders' Association President Mike Moore says numerous programs on the federal, provincial and municipal levels are available, but they may not be for everyone.
"A coupon for 10 cents off a can of beans doesn't do you any good if you're trying to buy a loaf of bread," says Moore, who represents many of the province's homebuilders, renovators and developers.
Many of the provincial government incentive programs are aimed at encouraging more energy-efficient and eco-friendly home improvements, while City of Winnipeg initiatives are geared toward helping low-income and inner-city homeowners.
Still, it can't hurt to know what's available and what may or may not apply to your home. Here's a rundown of some of the programs out there to help you beautify your castle.
Federal grants and incentives
The new Home Renovation Tax Credit is expected to provide $3 billion in economic stimulus when many of us may be clutching our wallets a little bit more tightly. Unlike most incentives, it can be used for almost any kind of improvement and covers both labour and materials (excluding tools, furniture and appliances).
The credit starts when eligible renovations exceed $1,000 and only applies to the portion between $1,000 and $10,000. The credit provides a maximum benefit of $1,350 ($9,000x15 per cent).
Purchases and expenses for renovations must be incurred before January 27 next year. Moore says it's a great incentive for Mr. or Mrs. Fix-it.
"Many jobs that require a professional renovator will be in excess of $10,000, but when you looked at the jobs (the feds) were describing, many were jobs that people may choose to do themselves," he says, adding laying of sod and building a deck or fence qualify for the rebate.
There is a maximum of one such claim per household.
The ecoEnergy Retrofit Program offers homeowners up to $5,000 in grants to help them stay warm, keep cool and go green. Expanded in this year's budget, it offers homeowners grants when they purchase energy efficient furnaces, air conditioners, windows, insulation and thermostats. It even includes money for geo-thermal systems. To qualify, the home has to undergo a residential energy pre-assessment, costing $180 plus GST and provided by Manitoba Hydro or AmeriSpec. A post-assessment, costing $125 plus GST, is also required.
Provincial and Manitoba Hydro initiatives
If it's mellow, let it yellow. If it's green... save $50 thanks to a new WaterSmart program offering an instant $50-rebate on low-flow, dual-flush toilets at most hardware stores in the province. Don't rush out just yet, though. The program starts Feb. 21, and there's a limit of two thrones per customer.
Manitoba Hydro offers a wide range of rebates, loans and savings for homeowners looking for maximum energy efficiency. The utility company offers everything from $3 coupons on compact fluorescent bulbs to $1,700 rebates on solar-heated hot water systems. The Earth Power Loan Program provides homeowners low-interest loans at 4.9 per cent up to $20,000 for 15 years to install a geothermal heating and cooling system.
City of Winnipeg
Most city programs help lower income families maintain their homes. In 2008, the Home Renovation Tax Assistance Program, which has yet to be approved by council for 2009, offered 15- to 25-per-cent tax credits for renovations on homes not exceeding an assessed value of $115,000. Some renovations were excluded, such as sidewalks, landscaping, painting and installing or repairing swimming pools or play structures. Renovations cannot cost more than $10,000 and energy improvements are limited to $6,000.
The Residential Rehabilitation Assistance Program provides up to $16,000 in loans for repairs to bring a home up to minimum health and safety standards. Available to families with a gross annual income of $45,000, the program is closed for the past fiscal year. But the city's website states Planning, Property and Development will likely start accepting applications again in March.
If you live in the North Point Douglas, Spence or William Whyte areas, and your home needs urgent repairs, you could qualify for $3,000 in emergency grants. The catch is the problems must be so bad that you would have to vacate the home if not repaired.
Many programs require certified examination and/or approval from the agency providing the financial aid. Contact the government department before embarking on the renovation to ensure it qualifies.
At the local level
Many neighbourhood associations in the city also have grant programs that give money to low-income homeowners to renovate their homes. Every year, the Spence Neighbourhood Association provides about $70,000 in grants to low-income howeowners to renovate their homes. Priority is given to those looking to upgrade the exterior of their homes, says Don Miedema, housing coordinator for the association. About 30 homeowners receive a grant of about $800 each every year to improve the exterior of their homes. Other community associations with grant programs include the North End Community Renewal Corporation and West Broadway Development Corporation.
What's eligible and what's not
The following renovations are eligible for the Home Renovation Tax Credit
- 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
The following are ineligble
- Furniture and appliances (refrigerator, stove, couch)
- Purchase of tools
- Carpet cleaning
- Maintenance contracts (furnace cleaning, snow removal, lawn care, pool cleaning, etc.)
Where to find out more
Federal programs:
Home Renovation Tax Credit -- Call 1-800-622-6232 or visit www.budget.gc.ca.
ecoEnergy Retrofit Program -- Call 1-800-622-6232 or visit ecoaction.gc.ca
Provincial programs:
WaterSmart -- Visit www.gov.mb.ca/seeinggreen/what_can_you_do/water_money.html
Power Smart (Manitoba Hydro) -- Visit www.hydro.mb.ca
City of Winnipeg:
Planning, Property and Development -- Call 940-3078 or www.winnipeg.ca/ppd/
