Federal Budget 2009 Incentives
Thursday, March 12th, 2009The federal budget 2009 introduced several incentives to get Canadians spending by buying a first time home, or renovating the one they are already in.
RRSP Home Buyers Plan Changed
The changes to the RRSP home buyers plan introduced in the new budget increased the RRSP withdrawal limit from $20,000 to $25,000 providing first time home buyers with additional access to savings to purchase or build a home.
Buyers Get A Tax Credit
For 2009 and subsequent years, the budget also introduced a new non-refundable tax credit to help first time home buyers with some of their closing costs. This HBTC will provide up to $750 in tax relief on the purchase of a first home . The HBTC is calculated by multiplying the lowest income tax rate for the year (15% in 2009) by $5000.
Grants for Eco Friendly Upgrades
The EcoEnergy Retrofit program provides home and property owners with grants of up to $5000 to offset the costs of making energy-efficiency improvements. Grants apply to a variety of measures that reduce energy consumption- anything from increasing insulation to upgrading a furnace.
Home Renovation Tax Credit
The proposed Home Renovation Tax Credit will provided a temporary 15 % income tax credit on eligible home renovation expenditures for work performed, or goods acquired after Jan.27/09 and before Feb 1 2010. the credit may be claimed for the 2009 taxation year on the portion of eligible expenditures exceeding $1000, but not more than $10,000 and will provided up to $1350 in tax relief.