Blog: RénoVert tax credit offered by Revenu Québec

March 11th, 2019

Planning any eco-friendly home renovations?  You may want to expedite your decision-making process to take advantage of the RénoVert tax credit offered by Revenu Québec.  This refundable tax credit is still available for eligible eco-friendly renovations undertaken pursuant to a contract entered into with a qualified contractor prior to April 1, 2019.

Where the conditions of the RénoVert program are met, you may be entitled to a maximum refundable  tax credit in respect of your eligible dwelling  in the amount of $10,000. This corresponds to 20% of the portion of qualified expenditures paid after March 17, 2016 and before January 1, 2020, that exceeds $2,500.

The following highlights examples of eco-friendly renovations and the conditions to be met to be eligible for the RénoVert tax credit:

Eco-friendly renovations:

Examples Include:

  • Insulation
  • Water-proof sealing of the foundations
  • Installation of doors and/or windows that ENERGY STAR qualified models
  • Installation of green or white roof
  • Replacement of a heating oil, propane or natural gas system with a system using electricity
  • Replacement of a window air-conditioning unit or central air-conditioning system with an ENERGY STAR qualified central split or ductless mini-split air-conditioning system
  • Replacement of an oil-fired water heater with a water heater using propane or natural gas

Eligible dwelling:

The eco-friendly home renovations must be done to a dwelling that is owned or co-owned by you that is:

  • Your principal residence, or
  • A winterized cottage that you normally occupy

The initial construction of the dwelling must have been completed before January 1, 2016 and must be:

  • A single-family home
  • A permanently installed prefabricated house or mobile home
  • An apartment in a building held in divided co-ownership (condominium)
  • An apartment in a multiple-unit residential building

Structures adjoining or accessory to the dwelling, other than an adjoining garage, are not considered part of your eligible dwelling.

Qualified expenditures:

Include cost of:

  • Permits to conduct work
  • Materials and labour, including sales taxes
  • Cost of any necessary cleanup

Qualified contractor:

A qualified contractor must:

  • Be established in Quebec
  • Hold the appropriate licenses issued under the Building Act for the renovation project
  • Deal at arm’s-length with the homeowner

Claiming the RénoVert tax credit

This credit can be claimed when filing your income tax return.  You must include the following with your income tax return:

  • Completed form TP-1029.RV. For 2019; the qualified expenditures must be paid after December 31,2018 and before January 1, 2020
  • Certificate of Compliance with Energy and Environmental Standards completed and signed by the qualified contractor

A couple jointly owning a residence may split the credit.

Should you have any questions, please contact your Crowe BGK advisor.

 

About the Authors:

Bonnie Cohen, CPA, CA, is a Tax Manager at Crowe BGK

Connect with her: b.cohen@crowebgk.com

Jianyi Li is a Tax Specialist at Crowe BGK

Connect with him: j.li@crowebgk.com

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