GATINEAU – A future Liberal government will help Canadian families save on energy costs and help the environment with the Green Renovation Tax Credit in the Liberal Family Pack, Liberal Leader Michael Ignatieff announced today at the RONA warehouse in Gatineau.
“We’re helping Canadian families with the costs of renovating their homes to make them more energy efficient – which will help them save on energy costs and help the environment,” said Mr. Ignatieff, who was joined by the Liberal candidate for Gatineau, Steve MacKinnon. “We can do this without raising taxes on families or making them wait five years behind large corporations, new mega-prisons and stealth fighters.
“Canadians don’t have to choose between environmental sustainability and a stronger economy,” said Mr. Ignatieff. “By making the Green Renovation Tax Credit a permanent program, we’ll spur the growth of small businesses in the energy efficiency field.”
As part of the Liberal Family Pack, a Liberal government will invest $400 million in a $13,500 refundable Green Renovation Tax Credit that will help Canadian families cover the cost of energy-efficient changes to their homes, such as installing new windows, doors or insulation. This simpler, permanent and refundable tax credit will enable families and entrepreneurs to invest in energy efficiency and plan for the future.
“Energy efficiency is not just about saving families money – it’s also about new skills, new businesses, and new opportunities for individuals across the country,” said Mr. Ignatieff. “This investment will benefit Canadian entrepreneurs and help our energy-efficiency sector grow.”
Over the last five years, the Conservative government let billions of dollars in clean energy programs expire. While a Liberal government will make the Green Renovation Tax Credit permanent, Stephen Harper will only give the ecoEnergy Retrofit Program a one-year stay of execution.
“We can help strengthen families and help the environment – without raising your taxes – if we stop corporate giveaways, control wasteful spending, and focus on what really matters: giving every Canadian the tools to succeed in the years ahead.”
BACKGROUND
Green Renovation Tax Credit
A Liberal government will invest $400 million in a new $13,500 Green Renovation Tax Credit. The tax credit will provide up to $2,025 in tax relief to Canadians who make energy-efficient changes to their homes such as installing new windows, doors or insulation.
The Liberal plan will also cover 50% of the cost of the home energy audit that will need to be conducted in advance of the renovation.
The Green Renovation Tax Credit will operate in a similar manner to the cancelled Home Renovation Tax Credit (HRTC). The Green Renovation Tax credit can be used any time after the initial audit for home investments that improve energy-efficiency in the home.
The Green Renovation Tax Credit will be refundable, ensuring that low- and middle-income families receive the maximum possible benefit from their renovation.
Through the implementation of the Green Renovation Tax Credit, a Liberal government will be investing in Canadian entrepreneurs and helping our energy-efficiency sector grow, promoting new skills, new businesses, and new opportunities for individuals across the country.
In Canada, homeowners who have performed energy-efficiency retrofits save an average of $500 on their annual energy costs. That’s an ongoing boost every year for both family finances and the environment through energy efficiency. By standing with Canadian families and helping with the up-front investment for green renovations, a Liberal government will help to retrofit at least one million homes by Canada’s 150th birthday in 2017.
Questions & Answers
Q: How will the Green Renovation Tax Credit work?
A: Households will need to begin with a home energy audit to identify where they are losing the most energy. A Liberal government will cover 50% of the cost of this audit. Once the audit is done and work begins, Canadians who make energy-efficient changes to their homes, following the guidelines of the home energy audit, will be able to receive up to $2,025 in tax relief from the Green Renovation Tax Credit.
Q: How is this different than the cancelled ecoEnergy retrofit grant program?
A: The program that we are proposing will be simpler administratively but it will also be easier for families to get their money back. You make the investment in renovations, submit your energy audit records and renovation receipts, and you see a bigger tax return at the end of the year.
Q: What about poor families that can’t afford the up-front costs of renovations?
A: This tax credit will be refundable, which means that even those with lower incomes will be able to receive a benefit from the tax credit.
The credit is also open to property owners with rental units. If property owners improve energy efficiency, renters will be able to lower their heating bills as well.
