Sask. home reno tax credit, a provincial election promise, becomes reality
The government is making good on an election promise by introducing a home renovation tax credit.
The non-refundable tax credit announced Thursday allows homeowners to save up to $2,100 in provincial income tax by claiming a 10.5 per cent tax credit on up to $20,000 of home renovation expenses.
Eligible expenses include the cost of labour and professional services along with building materials, fixtures, equipment rentals and permits.
"This tax credit will make the cost of home renovations more affordable and will help drive Saskatchewan's economic recovery," Deputy Premier and Finance Minister Donna Harpauer said in a news release.
The new tax credit was estimated to cost the province $124 million over two years.
Renovations must be completed in a Saskatchewan resident's principal home, which must be located in the province, the news release said.
Renovation expenses incurred between Oct. 1, 2020, and Dec. 31, 2022, qualify, and the renovations must be substantially completed by Dec. 31, 2022.
Eligible expenses include permanent additions to homes, but not items like furniture, appliances, hot tubs, tools or maintenance services like carpet or furnace cleaning.
Those applying should claim the credit for renovations on their 2021 and or 2022 personal income tax returns.
Qualified expenses incurred between Oct. 1, 2020, and Dec. 31, 2022, over the base of $1,000 but not more than $12,000, can be claimed on 2021 tax returns.
Qualified expenses incurred between Jan. 1, 2022, and Dec. 31, 2022, over the base $1,000 but not more than $10,000, can be claimed on 2022 tax returns.
The provincial government's news release said the tax credit can be split among eligible family members but the total claim cannot exceed the maximum $20,000.
The credit will be administered by the Canada Revenue Agency as part of the Saskatchewan personal income tax system. The news release said the agency is to develop the appropriate forms and filing instructions in the coming months.
