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HST: Last-day rush for tax credit

Posted in June's Kelowna Real Estate Blog on February 1, 2010

Karl Wong's wife raced off to a big-box store in Edmonton buy a soaker tub for their bathroom before the federal Home Renovation Tax Credit program ended Sunday.

"He doesn't know he's doing it yet," said Margaret Wong, "but the house is 35 years old and the tub looks terrible."

Wong was among hundreds of Canadians who flocked to home-renovation stores this weekend to make sure the materials for their projects would be on-site by the deadline -- a requirement of the program that allows a 15-per-cent tax credit to a maximum of $1,350.

Under the scheme, homeowners who hire a builder or buy renovation materials between Jan. 27, 2009, and Feb. 1, 2010, can claim a tax credit on their 2009 taxes.

Homeowners must spend between $1,000 and $10,000 to qualify.

The tax credit has been incredibly popular, and the New Democratic Party has called on the Conservative government to extend the measure.

The Wongs have already replaced the kitchen cabinets and toilets with the federal program in mind.

Mike Ellacott, of Home Depot, said most of the deadline shoppers were buying materials for smaller projects they can do themselves.

"People are going for a quick hit. Kitchens and bathrooms are big, with people replacing faucets and cabinet hardware," Ellacott said.

"The paint department has been very busy because people feel comfortable tackling that kind of a job."

Flooring has also been a big item, especially laminate, he said.

Energy-saving projects such as toilets and windows have been popular for the duration of the program, because homeowners also get a grant from the federal government under the EcoEnergy Retrofit program, Ellacott said.

Shannon Klappstein had new stairs put into the basement of her older house, and Saturday was buying paint to finish the project.

"There was a lot of work to be done in the basement. The federal program has certainly been good for us."

Customers across Canada have spent $135 million on 17,000 projects under an associated Rona program, an average of $8,000 per project

(prepared by David Finlayson/Vancouver Province)


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