Do you love do-it-yourself projects and you’re the type to save money by doing renovations for your house or cottage by yourself? You may be missing out on generous tax credits and subventions, which are only available to Québec’s homeowners who entrust their work to a certified contractor.
Whether federal, provincial or municipal, many programs and incentives encourage homeowners to upgrade their homes to meet standards. Renos that have a positive impact on energy use or the environment are often accompanied by credits that allow the recovery of significant funds.
Take time to do some research, particularly for your municipality and the area in which you live: programs can vary from one city to the next. Consider also that certain procedures and eligibility requirements apply, and that many programs are for a limited time. This is why it’s important to stay on the lookout. Starting some jobs sooner than later can be more profitable than waiting and risking missing out on a program.
In Quebec, the RénoVert program encourages year-round home or cottage owners to take an eco-friendly approach by doing renovations that have a positive impact on energy use or the environment. If more than one renovation expense is eligible, certain rules and exceptions apply, including the requirement to hire a certified contractor who can attest to the quality and professionalism of the work.
Eligible expenses include the cost of permits, materials used, contractor services and site restoration. For example, if you insulate your basement in an eco-friendly way, the cost of demolition and finishing would be eligible, as would the purchase of certified insulation material, wood, gypsum, nails, plaster and paint.
You can request a RénoVert tax credit by filing your income tax return. You must attach the RénoVert tax credit form (TP-1029.RV) and have your contractor fill out the Certificate of Compliance with Energy and Environmental Standards form (TP-1029.RV.A).
The maximum eligible tax credit amount is $10,000, which corresponds to 20% of the portion of expenses exceeding $2,500 paid before January 1, 2020. Hurry! At the time of publication, the program eligibility period ends March 31, 2019.
Another program to consider: financial aid offered by Rénoclimat. Compatible with the RénoVert tax credit, this program encourages renovations that reduce housing energy consumption.
Work can be done on the building envelope (insulation, sealing, etc.) or on certain mechanical systems (ventilation, heating, geothermal, boiler, etc.). Good news: Since March 2018, the replacement of doors and windows is also eligible under the Rénoclimat program.
In addition to profiting from financial aid, you could certainly profit from substantial long-term savings. In fact, it’s estimated you could lower your electricity bill by 20%.
Pay attention to offers from certain companies. Hydro-Québec supports, among other things, low-income housing with significant discounts. Énergir provides a grant for renovations that improve the thermal envelope of buildings, such as replacing windows and insulating walls or the roof. In Outauais, Gazifère offers rebates and financing to encourage the installation of new natural-gas appliances. The Chauffez vert program also provides financial aid to homeowners who replace their central heating system or their boiler using a fossil fuel other than natural gas (e.g., fuel oil or propane).
The tax credit for the upgrading of residential waste water treatment systems provides financial aid to homeowners who wish under take the repair of their septic systems.
The APCHQ website summarizes the main eligibility criteria for the tax credit, with a reminder that the credit is available until the end of the 2022 tax year. Many cottage or residence owners who are not connected to the water system therefore have the benefit of profiting from it, too. Remember, also, that the work must be carried out by a certified contractor that holds an “Independent Contractor in Sewage Systems” licence from the Régie du bâtiment du Québec (RBQ).
Even if they’re not directly related to tax credits, many available municipal subsidies can help your renovation work be profitable. Some examples? In Montreal, there are two renovation programs (à la carte or major) and the Stabilization of Residential Building Foundations program. Quebec City also proposes many options for owners of a heritage property.
Note that certain eligible expenses can be deducted from the amount if you benefit from financial aid from another program. That is why it’s in your best interest to do your research right from the start to adopt the most effective strategy and avoid unpleasant surprises.
Do your calculations before starting renovations, and don’t forget to work with experts and certified contractors to be eligible for the most benefits possible. These tax credits could really save you time and money. A National Bank financial advisor is also a good ally to help you determine the optimal choice. Using the best strategies allows you to get other tax savings during your renovations.
Any reproduction, in whole or in part, is strictly prohibited without the prior written consent of National Bank of Canada.
The articles and information on this website are protected by the copyright laws in effect in Canada or other countries, as applicable. The copyrights on the articles and information belong to the National Bank of Canada or other persons. Any reproduction, redistribution, electronic communication, including indirectly via a hyperlink, in whole or in part, of these articles and information and any other use thereof that is not explicitly authorized is prohibited without the prior written consent of the copyright owner.
The contents of this website must not be interpreted, considered or used as if it were financial, legal, fiscal, or other advice. National Bank and its partners in contents will not be liable for any damages that you may incur from such use.
This article is provided by National Bank, its subsidiaries and group entities for information purposes only, and creates no legal or contractual obligation for National Bank, its subsidiaries and group entities. The details of this service offering and the conditions herein are subject to change.
The hyperlinks in this article may redirect to external websites not administered by National Bank. The Bank cannot be held liable for the content of external websites or any damages caused by their use.
Views expressed in this article are those of the person being interviewed. They do not necessarily reflect the opinions of National Bank or its subsidiaries. For financial or business advice, please consult your National Bank advisor, financial planner or an industry professional (e.g., accountant, tax specialist or lawyer).