Skip to main content

Budget won't extend home renovation tax credit

The popular homeowner's tax credit that ran out in February will not be extended as the Harper government won't add any new spending or tax measures in its March 4 budget, a senior government official says.

Finance Minister Jim Flaherty intends to stick to handing out the second year of stimulus-spending cash it announced last year in its 2009 budget - some $19-billion in spending was earmarked for this year.

But it does not intend to extend any of the ones that have already expired like the homeowners' credit, which allowed Canadians to claim up to $1,350 on renovations worth between $1,000 and $10,000, or extend recession-time employment-insurance top-ups.

Story continues below advertisement

"I don't anticipate any new spending in budget 2010," said a senior government official who briefed reporters Monday. The official said there will also not be any new tax hikes or tax cuts.

It means the focus for the March 4 budget will shift to the Harper government's plans for cutting the deficit after 2011. The government will use the budget to lay out a multi-year plan for reducing the deficit, which is expected to hit $56-billion this year.

Did you take advantage of the home reno tax credit?

The government has already signalled that it believes it can balance the books over a number of years by restraining the growth of federal government spending.

But spending on pensions, health care, and education will not be touched, and will be allowed to grow at the projected rapid rate, the government official said.

Everything else - including the military - will be subject to a squeeze in coming years, the official said. That does not mean that budgets in those areas will be cut, but instead they will be curbed so that spending grows slower than projected.

Report an error
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

Cannabis pro newsletter