Blog: Québec Rénovert Tax Credit

May 24th, 2016 2017 Income Tax Limits and Benefit Rates for Automobile Expenses

The Québec Rénovert tax credit is a refundable credit that has been implemented on a temporary basis to encourage individuals, to renovate their principal residence or a winterized cottage by improving their dwelling’s energy efficiency. This tax credit can only be claimed for the 2016 and 2017 taxation years. Taxpayers must claim it when filing their income tax returns.

The renovation work must have been done by a qualified contractor under a contract entered into after March 17, 2016, and before April 1st, 2017. A qualified contractor will generally require a RBQ licence. The initial construction of the dwelling must have been completed before January 1, 2016, so the initial construction costs of a dwelling will not qualify for the credit. Qualified dwellings include:

  • a single-family home;
  • a pre-fabricated house or mobile home permanently secured in place;
  • a unit in a condominium building (including eligible expenses paid by the syndicate of co-owners) ;
  • a dwelling in a residential duplex or triplex;
  • a winterized cottage that is normally occupy by the taxpayer.

Examples of work recognized for the purpose of the Rénovert tax credit include the following:

  • Work relating to the envelope of a dwelling: Insulation of the roof, exterior walls, foundations and exposed floors (the insulation must be certified Greenguard or Ecologo). Sealing work e.g water-proof sealing of foundations or air sealing of the envelope of the dwelling. Installation of doors or windows with ENERGY STAR qualified models. Installation of a green or white roof;
  • Work relating to the mechanical systems of the dwelling : replacement of a heating system, an air-conditioning system, a water heating system or a ventilation system with an ENERGY STAR qualified system;
  • Work relating to water conservation and quality (unless the eligible dwelling is a cottage): Installation of an underground rain water recovery tank. Construction, renovation or modification of a system for the discharge, collection and disposal of waste water. Restoration of a buffer strip;
  • Work relating to soil quality : Decontamination of fuel oil-contaminated soil;
  • Other renewable energy devices: Installation of photovoltaic solar panel or a domestic wind turbine that comply with certain standards.

Note that no structures adjoining or accessory to the dwelling, other than an adjoining garage, will be considered as being part of an individual’s eligible dwelling.

The amount of the tax credit corresponds to 20% of the portion of an individual’s eligible expenses that exceeds $2,500, up to a maximum tax credit of $10,000 per eligible dwelling. In other words, taxpayers will reach the maximum tax credit if they have $52,500 or more in renovation work done. Any government assistance or non-government assistance like indemnities paid under an insurance contract must be subtracted from the amount of eligible expenses.

If a taxpayer is the co-owner of an eligible dwelling, the amount of the tax credit can be split with any other co-owners. However, the total amount of credit claimed in respect of the dwelling cannot exceed $10,000.

Please do not hesitate to contact the Crowe BGK tax group if you require additional information or clarification.

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