The Home Renovation Tax Credit plan allows you spend up to $10,000.00 on your family home and get a tax credit back, up to a maximum of $1,350.00.

It's a credit, so it reduces the amount of federal tax you have to pay; it doesn't mean you get a cheque back for $1,350.00.

HOW DO YOU APPLY?
There are no application forms. There will be a line in the 2009 personal tax return.

DO YOU NEED TO BE PRE-APPROVED BEFORE THE WORK CAN BE DONE? No.

WHAT IS THE ELIGIBILITY PERIOD?
The credit is based on work done and materials acquired after Jan. 27, 2009, and up to Feb. 1, 2010.

WHO IS ELIGIBLE?
The plan is family based. In the eyes of the CRA that means an individual or an individual and his/her spouse or common law partner, including children under 18 at the end of 2009.

HOW IS IT CALCULATED
The 15 percent credit is based on expenditures of more than $1,000 of work, but not more than $10,000. The maximum credit $1,350 is based on 15 percent of $9,000.

WHAT IF THE WORK IS OVER $10,000?
Homeowners are free to spend more than $10,000 on their renovations but they will not get a credit on any work over the limit.

WHAT DOCUMENTS DO I NEED TO SUBMIT?
Homeowners need to retain all agreements, invoices and receipts for the work performed available in case the CRA requests them.