RENOVATIONS: Home renovation tax credit

There’s never been a better time to do a major landscape project such as building a new deck, installing a patio, lawn or pond, or erecting a stone retaining wall. All of these projects qualify for a Home Renovation Tax Credit, a federal government incentive intended to stimulate the economy.

The rebate applies to eligible expenses of more than $1,000, but not more than $10,000, for a maximum credit of $1,350.

Many people don’t realize the credit includes garden renovations as well as home improvements.

Other items that can be claimed as a tax credit include turf for a new lawn, perennial shrubs and flowers, trees, large rocks, permanent garden lighting, permanent water fountains, permanent ponds, and large permanent garden ornaments.

But there’s one other excellent reason for deciding to do this year that garden renovation you’ve perhaps been putting off.

Because of the downturn in the housing sector, there is an abnormal abundance of quality tradespeople available to do work at the moment.

“In past years, there’s always been a shortage of trades people capable of doing quality stonework, for instance,” says Gary Faulkner of Northwest Landscape and Stone Supply in Burnaby, a favourite source for landscape materials in Metro Vancouver.

“ Over the last six months we’ve seen a sea change with a lot more tradespeople who do exceptionally good work being available to take on landscaping jobs.”

Popular projects include the installation of brick and slate patios, new fences and decks, and dry-stacked basalt and stone retaining walls, says Faulkner.
“It’s so much easier right now to hire a good stonemason who knows what he’s doing. In the past, you’d have to wait quite a long time to get someone who could do a reliable, quality job. Today, there’s no shortage of skilled workers.”

Many of these people were employed in the housing sector, doing work at newly constructed high-end homes, says Faulkner. But since that market dried up because of the economic crisis, these tradespeople have been taking on more landscape commissions.

Brian Ramor, of Think Green Landscaping in Vancouver, a garden renovation specialist, says more people are putting their disposable income into home and garden renovations instead of holidays.

“We’ve definitely seen a big increase in garden renovation projects, but I think this is partly due to the hard winter we had, which killed a lot of plants that people had to replace.”

Ramor says many people already had a renovation project planned but expanded it to take advantage of the tax credit.

“The banks are actually looking to lend money to people who have plenty of equity in their home. We are seeing more people taking advance of that option,” he says.

Eligible dwellings include homes, cottages and condominium units that are owned for personal use.

Expenses such as labour, building permits, equipment rentals, professional services and incidentals are also eligible.

Do-it-yourself labour is not eligible for the tax credit. Receipts will be needed, but homeowners are not required to submit the receipts with their income tax file to the Canada Revenue Agency.

For more information, visit www.cra-arc.gc.ca.

("Thinking about a landscaping project? Now’s the time to do it" prepared by Steve Whysall/Vancouver Sun)