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: email@example.com
Jianyi Li is a Tax Specialist at Crowe BGK
Connect with him: firstname.lastname@example.org
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