Maybe with an election coming, we could see the Home Renovation Tax Credit reinstated?
Jim Baird, an Ottawa-area renovator, is just one of a large number of Canadian contractors who are urging the return of the Home Renovation Tax Credit. It should be an election issue next year - or right now, they say.
October 17, 2014 by Steve Payne
Here’s an email I got a few days ago from Jim Baird, First Place Renovations, Ottawa. He’s one of the VAST number of our readers that really wants to see the Home Renovation Tax Credit reinstated. If you scroll down, you will see the 2009 email he sent to two of his local MPs, John Baird (Ottawa West-Nepean) and Pierre Polievre (Nepean-Carleton).
I operate a small renovation contracting firm in Ottawa. I have 7 full time staff. We do everything from change a door swing to full blown house renovations and additions.
I am relaxing at my cottage this weekend and reading your most recent magazine. I got to the “Voices” portion and was quite pleased with what I read. Back in 2009, I forsaw all of this and sent the letter below to both our local MP as well as John Baird, whom although I am not related to directly, I have met on several occasions mostly due to sharing our last name.
I would like to add, neither responded in any form.
Maybe with an election coming, we could see this re-instated. The recent govenment cutbacks and now the threat of a public service strike have had a detrimental effect on our business in the past two years. Our sales have plummetted as much as 60% from 2008-2010. We could really use an incentive such as this.
Thanks for reminding us all.
—– Original Message —–
From: Jim Baird
Sent: Wednesday, September 09, 2009 6:51 PM
Subject: Home renovation tax credit
I would like to take this opportunity to offer my front line opinions on the home renovation tax credit.
When this was first introduced, I did not realize the significance that I now see. There has been a noticable change in direction from some of the general public. For the past several years, approximately 50% of our small renovation or repair project clients have asked us if we are able to work for “cash”. The assumtion was that without any paper trail, we would not need to collect the GST. However, now there is incentive the other direction. All of our clients this year, large or small, have asked us to provide an invoice suitable for the tax refund, or if the work we are doing/planning/estimating would qualify for the refund. It is very, very, popular.
Now is the sensible part. I am certain you are all aware of these facts. The 5% GST we are collecting on these invoices is being paid to you every quarter. That’s money in your pocket now. The tax credit for the general population is not going to be paid out until next March at the earliest. And lastly, many “underground” contractors will now have to claim income they never have or would have in the past. And pay out varying rates of 18-27% on those increased incomes. I think the entire thing is “genius”. Someone should have thought of it years ago. And, it levels the playing field for those of us who run legitament, responsible, tax-paying (collecting) companies. We have lost work to the underground for years.
We have all heard grumblings of an election. I would suggest that not only is this program pushed as an election promise, but that possibly an extension be considered as additional voting incentive.