Notice of Refundable Tax Credit for Home Improvement And Renovation

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QUÉBEC, Jan. 14 /CNW Telbec/ - The Minister of Finance and Minister responsible for Infrastructure, Monique Jérôme-Forget, today announced the introduction of a refundable tax credit for home improvement and renovation. This is one of the additional measure designed to support Québec's economy, contained in the economic statement tabled in the National Assembly.

The tax credit targets owners of a principal residence or a 2 or 3-unit building whose owner occupies one of the units. With a rate of 20% and a maximum amount of $2 500, it will support renovation expenses in excess of $7 500. Roughly 170 000 households will be able to receive tax relief of $250 million in 2009-2010, i.e. an average tax credit of $1 470 per household.

This measure will stimulate the construction industry, supporting employment in a slowing economy. In practical terms, the new tax credit will help maintain the jobs of 25 000 workers and will create 2 000 new jobs in this sector.

"It is well known that spending on renovation and home improvement has a significant multiplier effect on the economy. in addition to contributing to Québec's economy, this measure will enable Quebecers to improve their home," Minister Jérôme-Forget said.

Eligible dwellings include single-family homes, duplexes, triplexes, permanently-located mobile homes and condominiums and annexes that are an integral part of them.

Eligible expenditures must be incurred as of January 1, 2009 and before January 1, 2010 for recognized home improvement and renovation work entrusted to qualified contractors.

For further information: Catherine Poulin, Press Relations Officer, Office of the Minister of Finance and Minister responsible for Infrastructure, (418) 643-5270, (514) 873-5363