Harper Government's Home Renovation Tax Credit a Success: Saved Average Family over $700; Pumped Billions into the Economy
Winnipeg, Manitoba, January 25, 2011...The Harper Government today highlighted the benefits of the Home Renovation Tax Credit (HRTC), citing its major positive impact on Canadian families and Canada's economy, helping shield Canada from the worst of the global recession.
Over 3 million Canadians and counting have taken advantage of the HRTC – a key component of the first phase of Canada's Economic Action Plan. The average tax savings was over $700 per claimant. This represents about one out of every three owner‑occupied households.
"Our Government's initiatives to keep the Canadian economy strong during the recession are clearly working," said the Honourable Steven Fletcher, Minister of State (Democratic Reform). "Our approach to economic stimulus kept the economy churning throughout the toughest times and we continue to see positive impacts as a result."
"By encouraging Canadians to invest in their home with this tax relief, our Government gave a timely boost to the Canadian economy that helped maintain jobs in areas such as home renovation, construction, retail, and forestry that could have otherwise been lost to the effects of the recession," said Minister of National Revenue Keith Ashfield, "It also put more money back into the pockets of hardworking Canadians for investing in their home, a family's most important investment."
The HRTC gave the Canadian economy a shot in the arm in the midst of the worldwide economic crisis. With support from the HRTC, real spending on residential renovations rebounded strongly in Canada, increasing by an average of 18.1% from the second quarter of 2009 through the first quarter of 2010. Analysts have estimated it pumped an additional $4.3 billion in renovation investment into the economy, at a time when the recession would have reduced investment in that sector.
Industry has been virtually unanimous on the strong positive impact this measure had on the economy. For instance, Victor Fiume, National President of the Canadian Home Builders' Association, said, "the HRTC increased economic activity, created jobs, and demonstrated confidence among consumers in using professional renovators. It's done a lot of good for our industry and for consumers and obviously has kept the industry stronger in these tough times and in job creation as well."
"The Home Renovation Tax Credit has without a doubt helped stimulate the economy of our industry," said Robert Dutton, RONA President and CEO. "At RONA alone, its impact, combined with RONAdvantage's additional incentive program, resulted in over 18,000 applications representing renovation projects worth more than $140 million. Meanwhile, Project Guide and Installation sales increased by more than 15%. This type of initiative, with a positive impact on our industry's economy, is always welcome, and also helps saves jobs for Canadians," he added. "Our RONA program was so popular that we decided to launch a permanent one in April 2010."
"The HRTC was a very timely and beneficial program for our customers. The interest and impact were immense. Our company saw a very direct and immediate increase in homeowner business as a result of the program," said Doug Cook of MuddRuckers Inc., a concrete lifting and levelling company in Winnipeg.
The Home Renovation Tax Credit was a temporary, non-refundable tax credit and was key component of Canada's Economic Action plan.