Even though it is often expensive to renovate, many homeowners take advantage of confinement to undertake eco-responsible renovations.
Job losses and the economic slowdown have not dampened the enthusiasm for renovations aimed at reducing energy consumption.
And for good reason: several generous subsidy and tax credit programs lower the cost of eco-responsible work.
According to the Association of Construction and Housing Professionals of Quebec (APCHQ), there was a 63% increase in registrations for the Rénoclimat program from May to October.
This increase in interest coincides with the enhancement, since last May, of the Rénoclimat and Chauffez vert programs. It was announced that, until December 31, 2020, it would be possible to get an additional bonus of up to $ 3,000.
It is therefore an excellent time to undertake eco-responsible renovations, since the assistance provided by governments is currently very advantageous.
Grant or tax credit?
A grant allows you to literally seek a financial donation to pay for part of the renovations that will improve the energy efficiency of your home. In other words, the government sends you a check to help you pay for your work.
As for the tax credit, this incentive aims to reduce the amount of tax you will pay at the end of the tax year, i.e. between 1er January and December 31. So when you file your income tax return, you or your accountant can claim your tax credit against it. Depending on your tax situation, you will be entitled to either a tax refund or a reduction in the amount claimed by the government.
To get an overview of the financial assistance to which you may be entitled, simply visit the websites of the Rénoclimat and Chauffez vert programs.
Everyone loves tax credits
Tax credits are very popular. For example, from 2016 to 2019, 320,000 Quebec taxpayers benefited from the RénoVert tax credit.
Why this craze for tax credits? On the one hand, the taxpayer wins because his tax bill is reduced. On the other hand, by giving tax credits, the government is not only helping to improve the country’s energy balance; it fights against illegal work, it helps the regions and promotes sustainable development. Everybody wins.
And it is very possible that other grants and tax credits are in addition to those cited in this article.
Or at the very least, governments are likely to roll over these incentives when they expire. In the last throne speech, the federal government announced that it wanted to place energy efficient renovation programs at the heart of its priorities as part of its economic recovery plan for Canada. So keep an eye out!
- Ghislain Larochelle is a professional registered with the Ordre des ingénieurs du Québec and the OACIQ.
- Don’t leave money on the table. Before starting any renovations, check the list of grants and tax credits to see which ones you may be entitled to.
- If you are thinking about possibly embarking on renovations, keep an eye out so you don’t miss the announcement of new grants you may be entitled to.