Canada's Government introduces financial help for first-time home buyers
Ottawa, Ontario, February 2, 2009... The Honourable Jean-Pierre Blackburn, Minister of National Revenue and Minister John Baird, Canada's Minister of Infrastructure, Transportation and Communities and Member of Parliament for Ottawa West - Nepean, highlighted key initiatives from Budget 2009:  Canada's Economic Action Plan that will benefit first-time home buyers.

Canada's Economic Action Plan supports the Canadian home construction and real estate industries, with a First-Time Home Buyers' tax credit that will provide up to $750 in tax relief to first-time home buyers; and an increase in the amount that they can withdraw from an RRSP to purchase a home from $20,000 to $25,000.

 “Buying a home for the first time is a milestone event for many Canadians and is often the single largest purchase that one can make,” said Minister Blackburn. “The proposals announced in Canada's Economic Action Plan will not just help first home buyers in the purchase of their first home.  It will also help stimulate the housing sector through increase in demand for labour, building materials and other goods.”

“Young families and others looking to buy a home for the first time deserve a break, and our government has delivered,” said Minister Baird.  “When people are buying homes, tradespeople are being put to work, businesses that make and sell building products get a boost, and the real estate industry continues to employ people too.”

“The federal government has found a way to introduce economic stimulus and housing initiatives for specific groups, and for Canadians who want to buy their first home,” said Calvin Lindberg, President of the Canadian Real Estate Association (CREA).

"This is great news for first-time homebuyers who comprise a sizable portion of our customer base. And with the new home market experiencing a slowdown in recent months,” said Robert Greenberg, Executive Vice President of Minto Developments Inc. “These types of incentives are certainly welcomed by the housing industry. When you think of how many components go into the building of a new home, a strong housing market is good for the overall economy, not just for builders."

More information on these and other measures in Canada's Economic Action Plan, a plan to stimulate the economy and protect those hit hardest by the global recession, can be found at http://www.budget.gc.ca/2009/home-accueil-eng.asp.

Home renovations are smart investments in the long term value of a home and also create economic activity by increasing the demand for labour, building materials and other goods. Renovations can also reduce energy consumption and the long-term cost of owning a home. To provide some $3 billion of much-needed fiscal stimulus and encourage investments in Canada’s housing stock, Budget 2009 proposes to implement a temporary Home Renovation Tax Credit (HRTC).

Temporary, Timely and Targeted Stimulus
The HRTC will apply to eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010, pursuant to agreements entered into after January 27, 2009. The temporary nature of the credit will provide an immediate incentive for Canadians to undertake new renovations or accelerate planned projects. The HRTC can be claimed for renovations and enduring alterations to a dwelling, or the land on which it sits.

How the HRTC Will Work
The 15-per-cent 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 that can be received is $1,350. The credit can be claimed on eligible expenditures incurred on one or more of an individual’s eligible dwellings. Properties eligible for the HRTC include houses, cottages and condominium units that are owned for personal use. Renovation costs for projects such as finishing a basement or re-modelling a kitchen will be eligible for the credit, along with associated expenses such as building permits, professional services, equipment rentals and incidental expenses. Routine repairs and maintenance will not qualify for the credit. Nor will the cost of purchasing furniture, appliances, audio-visual electronics or construction equipment.

Who Can Claim the HRTC?
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 will be 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.

Examples of HRTC Eligible and Ineligible Expenditures
                Eligible
• Renovating a kitchen, bathroom, or basement
• New carpet or hardwood floors
• Building an addition, deck, fence or retaining wall
• A new furnace or water heater
• Painting the interior or exterior of a house
• Resurfacing a driveway
• Laying new sod
                Ineligible
• Furniture and appliances (refrigerator, stove, couch)
• Purchase of tools
• Carpet cleaning
• Maintenance contracts (furnace cleaning, snow removal, lawn care, pool cleaning, etc.)

For the legal interpertation of The Home Renovation Tax Credit go to Canada Revenue Agency’s website at (www.cra-arc.gc.ca).

http://www.cra-arc.gc.ca/tx/ndvdls/sgmnts/hmwnr/hrtc/menu-eng.html 

 

Calgary council scraps real estate tax
  
Calgary HeraldFebruary 24, 2009 8:02 AMComments (7)   StoryPhotos ( 1 )

Council has scrapped a controversial proposal to increase the land transfer fee home buyers pay during real estate deals in order to help finance affordable housing in the city. Recommendations to explore stable sources of funding, such as a development levy on new and redeveloped property, were approved once the contentious land transfer fee was removed. Ald. Bob Hawkesworth said getting rid of that one item allowed other good measures to go forward. "I think it detracted from the overall thrust of the report and the tools we're looking for," he said. "It's quite a hot button for people, and it was taking attention away from other solutions in the report." The report looked at a number of ways to try to make it easier to build affordable housing units in the city, as well as ways to fund them. Ald. Joe Connelly disagreed even after the idea of a land transfer tax was removed, arguing that affordable housing is a provincial responsibility. "If we keep getting into the batter's box, they're never going to field a team," Connelly said. "If we continue to jump in, guess what? The province is not going to jump in." A number of aldermen said that while they'd support looking at the issues around increasing the land transfer tax -- which now costs $125 on average -- they weren't in favour of actually using it. "I for one would not support a land transfer fee when it comes back," Ald. Linda Fox-Mellway said. "But this is just investigating them all."

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