Legislation for the new Saskatchewan Home Renovation Tax Credit was introduced Thursday, fulfilling the government’s first commitment in the recent election campaign.
Deputy Premier and Finance Minister Donna Harpauer says “This new tax credit will make the cost of home renovations more affordable and will help drive Saskatchewan’s economic recovery,”
Under this non-refundable tax credit, Saskatchewan homeowners may save up to $2,100 in provincial income tax by claiming a 10.5 per cent tax credit on up to $20,000 of eligible home renovation expenses. Eligible expenses include the cost of labour and professional services, building materials, fixtures, equipment rentals and permits.
To qualify, renovations must be to a Saskatchewan taxpayer’s principal residence, which must be located in Saskatchewan. Renovation expenses must be incurred between October 1st this year and December 31st, 2022, and the renovation must be substantially completed by December 31, 2022.
Eligible expenses do not include items such as furniture, appliances, hot tubs, tools or maintenance services such as carpet or furnace cleaning.
Taxpayers should claim the credit on their 2021 and/or 2022 personal income tax returns.
Total qualified expenses incurred between October 1, 2020 and December 31, 2021 in excess of $1,000 (base amount), but not more than $12,000 can be claimed on 2021 tax returns (maximum claim of $11,000 for 2021).
Total qualified expenses incurred between January 1, 2022 and December 31, 2022 in excess of $1,000 (base amount), but not more than $10,000, can be claimed on 2022 tax returns (maximum claim of $9,000 for 2022).
The tax credit can be split among eligible family members, but the total amount claimed cannot exceed the maximum allowable.
The Saskatchewan Home Renovation Tax Credit will be administered by the Canada Revenue Agency (CRA) as part of the Saskatchewan personal income tax system. CRA will develop the necessary forms and filing instructions in the coming months.
The new tax credit is estimated to cost $124 million over two years.
For more information about the tax credit, including more examples of eligible renovation expenses, go here, or call 1-800-667-6102 (toll free), or email sasktaxinfo@gov.sk.ca
