Blog: RénoVert tax credit offered by Revenu QuébecMarch 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:
- 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
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.
Include cost of:
- Permits to conduct work
- Materials and labour, including sales taxes
- Cost of any necessary cleanup
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: firstname.lastname@example.org
Jianyi Li is a Tax Specialist at Crowe BGK
Connect with him: email@example.com
Subscribe to the Crowe BGK Newsletter(s):
Our Clients Speak
"...Through their quality professional services, Crowe BGK helped us grow our company from 30 to 200 employees during that same period, while maintaining cordial relationships with all stakeholders."Daniel Laporte President, Laporte Consultants Inc.