Yesterday I was invited, as part of the Green Task Force, to attend the talk given by Federal Minister of Natural Resources, Lisa Raitt at the Victoria Real Estate Board. She is a charming, intelligent woman, originally from Cape Breton Island, with a law degree from Osgood Hall, and a young family. The main focus of her talk was to communicate specific items from the budget that relate to Vancouver Island (wood for example). She mentioned that 200,000 home owners are expected to participate in the federal home energy efficiency upgrade grants, and the economic benefit this will have.
See this article from the Times Colonist:Renovation tax credit may be a 'good incentive'
Homeowners and builders welcome incentive
Natural Resources Minister Lisa Raitt helps drill a hole in the concrete basement wall of Paul Mondor's home yesterday.
Photograph by: Debra Brash, Times Colonist
A tax credit of up to $1,350 is unlikely to convince homeowners to plan a renovation, but according to one busy local contractor, if a new roof or extension was already top of mind, that new tax credit might just nudge the project forward despite an economic downturn.
"Whether this is enough to push people forward, who knows?" said Doug Downs, owner of Eagleye Restoration and Construction, standing in the basement of a Maplewood home reno he is overseeing. "Obviously, if you are not planning a renovation you are not going to run out and do it for $1,350, but if you were planning one, then you can actually use that money."
Included as part of federal Finance Minister Jim Flaherty's $40-billion stimulus package introduced earlier this week, the Home Renovation Tax Credit gives homeowners a credit of 15 per cent on renovations between $1,000 and $10,000, to a maximum of $1,350.
Projects undertaken by Feb. 1, 2010, can be claimed on a 2009 tax return. The federal government estimates the program will cost $3 billion over two years, and 4.6 million families will take advantage of it.
Downs said he expects Canadians won't simply pocket the tax credit, but will inject that little bit extra into the system.
"I think most people will spend a bit more, use it or upgrade something -- it's a good incentive," he said. "You'll see people using the money for what it's intended. There are people who want to do things green but that costs more, so maybe they will use the money for that."
Homeowner Paul Mondor said every little bit helps.
He has hired Eagleye to do a $60,000 to $70,000 renovation on his existing home near Cedar Hill Cross and Reynolds roads while the company builds a new home at the rear of the property.
"I think it's fantastic -- a lot of people were looking forward to this," he said, noting he will certainly take advantage of it as he is likely eligible to claim the maximum amount. "More is always better, but it's a heck of a lot better than nothing and it gives some encouragement to do something."
That was likely music to the ears of Natural Resources Minister Lisa Raitt, who toured Mondor's renovation site yesterday.
Raitt had been in the city to speak with the Victoria Real Estate Board and Greater Victoria Chamber of Commerce to promote awareness of the tax credit and the government's $300-million infusion of cash into home energy retrofits.
"They are the two key parts of this economic action plan because it helps people save money long-term [by reducing] the costs of operating their houses, and it puts the economy in the hands of smaller contractors, making sure we have people working and have the economy moving," she said, having tried her own hand at drilling into Mondor's basement wall.
Raitt said the government is also working on reducing the red tape that has held up some "shovel-ready" projects.
"We will see quick turnaround on these projects," she said. "It doesn't do anyone any good if we announce a project and it doesn't get going. The time is now for the economy to move, not 18 months from now."
