This year, money really does grow on trees!   Yes, all those guilty little pleasures you bought from the nurseries and plant centres could actually save you money this tax season!

The Home Renovation Tax Credit (HRTC) applies to eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010. The HRTC can be claimed for renovations and enduring alterations to a dwelling, or the land on which it sits. This includes landscape services and products! A 15% credit may be claimed on the portion of eligible expenditures exceeding $1,000, but not more than $10,000, meaning that the maximum tax credit is $1,350.

Renovation costs for landscape related projects are eligible for the credit, along with associated expenses such as building permits, professional services, equipment rentals and incidental expenses (like plants, trees, and shrubs). 

Properties eligible for the HRTC include houses, 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, but many of the building supplies and plant material you have put into your garden could be!  Receipts will be needed, but consumers are not required to submit the receipts with their income tax file to Revenue Canada. The receipts will be needed if Revenue Canada requires confirmation of those projects.

What Can I Claim?

·         purchasing trees, shrubs, perennials

·         decks, retaining walls, pathways

·         irrigation and lighting systems

·         ponds and waterfalls

·         garden sheds

·         laying new sod

·         professional landscape design services

·         professional landscape contractor services

Listed as not eligible: annuals, lawn and garden maintenance, tree maintenance, snow removal, hanging baskets, containers and planters.

Who Can Claim?

About 4.6 million families in Canada are expected to benefit from the credit. Taxpayers can claim the HRTC when filing their 2009 tax return.  Eligibility for the HRTC is family based.  For the purpose of the credit, a family is generally considered to consist of an individual, and where applicable, the individual’s  spouse or common-law partner. Family members will be able to share the credit.

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

*Disclaimer:  The information provided is a compilation of articles found through the Government of Canada website and other service providers.  Sweetpea's highly recommends that you speak with your accountant regarding the HRTC and how it can be applied to your specific project and tax filings.