The following examples will illustrate how homeowners can benefit from the HRTC.

1:  Sally and Ed are a couple who have recently purchased a house.  To take advantage of the temporary HRTC, they decide to replace their windows and improve the insulation in their home in 2009, (instead of waiting), incurring $10,000 in expenditures.  After taking account of the $1,000 minimum threshold, a 15% credit will be available on $9,000 in eligible expenditures, providing tax relief of $1,350.

2.  William and Marie are a couple who are planning to purchase a more energy-efficient furnace for their home, and build a deck at their cottage sometime later.  To take full advantage of the temporary HRTC, they decide to do both projects in 2009 rather than waiting.  They pay $5,000 for the furnace and $3,500 for the deck.  They also decide to have teh area around the deck landscaped for $2,500, bringing their total costs to $11,000.  Marie claims a credit of $1,350 on the maximum allowable amount of $9,000.  This credit is in addition to the ecoENGERGY Retrofit grant that William and Maire expect to receive for installing a more energy-efficient furnace.

3.  Karen and Heather are sisters who share ownership of a condo unit.  They each incur $7,500 in expenditures renovating the kitchen in the cono, in part to provide access for Heather's wheelchair.  Karen and Heather each claim a $975 credit on eligible expenditures of $6,500 ($7,500 - $1,000).  This credit is in addition to the Medical Expense Tax Credit that Heather may claim on the portion of expenses eligible for that credit.

Examples of HRTC - Eligible and Ineligible Expenditures

Eligible

• - Renovating a kitchen, bathroom or basement
• - New carpet or hardwood floors
• - A new furnace or water heater
• - Painting the interior or exterior of a house
• - Resurfacing a driveway
• - Laying new sod
• - Labour costs
• - Professional fees
• - Building materials
• - Fixtures
• - Equipment rentals
• - Permits

Ineligible

• - Purchase of furniture and appliances (e.g. refrigerator, stove, and couch)
• - Purchase of tools
• - Carpet cleaning
• - Maintenance contracts (e.g. furnace cleaning, snow removal, lawn care, and pool cleaning)