Renovator's council chair favours renewing reno tax credit

The proposed resumption of the Home Renovation Tax Credit was big news lost in the uproar that followed the unveiling of the Conservative Party's 2011 budget, but we are likely to hear a lot more about it.

The old program had been very successful, managing a rare marriage of stimulating an economy while promoting more earth-friendly ideals.

The Canadian Revenue Agency said more than three million Canadians -almost a third of the owner-occupied housing market -took advantage of the program, each saving an average of $700. Added to the 2011 budget ostensibly at the request of the New Democratic Party, the tax credit is a good bet to reappear when a federal budget is finally approved.

The chairman of the Canadian Renovator's Council, Mike Martin, was happy to hear it may be continued. "From what I've been hearing it's a great program. I am very happy they were going to extend it," he said.

In addition to chairing both the Canadian council and the Ontario Renovator's Council, Martin runs Luxury Renovations, an award-winning Ottawa-based company.

While the renovation program had been accused of not helping lower-class households or being too complicated, Martin said the program held no surprises.

"You have to go about it the right way, you have to follow all the guidelines to a tee."

Martin said there was benefit to making small changes as well as large ones.

The program would allow for up to 15 per cent of the cost of renovations to be claimed, to a maximum of $1,350, against a homeowner's taxes.

While the gain for the taxpayer is evident, Martin says the inherent structure of the program will provide a boost to the renovation industry.

"The best part about it is they have to show receipts from the contractor and that deters the underground economy," he said.

The council estimates 75 per cent of home renovations are done under the table, a fact he attributes to the implementation of the HST. "The underground economy is devastating our industry."