RénoVert Tax Credit
You can claim the RénoVert tax credit only for the 2016 and 2017 taxation years, and you must do so when you file your income tax return.
This refundable tax credit has been introduced on a temporary basis to encourage individuals to invest in recognized eco-friendly home renovation work that has a positive environmental impact or improves their dwelling's energy efficiency.
You can claim the credit if you have recognized eco-friendly home renovation work done to a dwelling you own or co-own that is your principal residence or a winterized cottage that you normally occupy. The initial construction of the dwelling must have been completed before January 1, 2016, and the dwelling must be one of the following:
- a single-family home (This link will open a new window);
- a permanently installed prefabricated house or mobile home (This link will open a new window);
- an apartment in a building held in divided co-ownership (condominium);
- a dwelling in a residential duplex or triplex;
- a winterized cottage that you normally occupy.
The renovation work must have been done by a qualified contractor (This link will open a new window) under a contract entered into after March 17, 2016, and before April 1, 2017.
The amount of the tax credit you can claim in respect of an eligible dwelling (This link will open a new window) corresponds to 20% of the portion of your eligible expenses paid after March 17, 2016, and before October 1, 2017, that exceeds $2,500, up to a maximum tax credit of $10,000.
Eligible expenses are all those which are related to the recognized eco-friendly renovation work, such as:
- the cost of any permits required to do the work, including any studies to obtain such permits;
- the cost (including taxes) of any goods that:
- were used to carry out the work,
- were supplied by the contractor or were acquired from a QST-registrant supplier after March 17, 2016,
- meet, where applicable, the energy and environmental standards mentioned in the list of recognized eco-friendly renovation work;
- the cost (including taxes) of services rendered by the contractor in carrying out the work;
- the cost of any necessary cleanup.
For example, eligible expenses for the insulation of a basement that meets the requirements mentioned in the list of recognized eco-friendly renovation work include those related to demolition and finishing. In this case, expenses incurred to purchase GREENGUARD or EcoLogo certified insulation materials, lumber, drywall, vapour barriers, nails, subflooring, flooring, paint and plaster for the insulation project are also eligible expenses.
- No structures adjoining or accessory to the dwelling, other than an adjoining garage, will be considered part of your eligible dwelling.
- In the case of a condominium, eligible expenses include those paid by the syndicate of co-owners, up to your unit's share of the expenses. The syndicate of co-owners must, using the prescribed form, provide you with information concerning the work done and the amount of your unit's share of the expenses.
- In order for recognized eco-friendly renovation work concerning water conservation and quality (This link will open a new window) to be eligible for the tax credit, the dwelling in question must be your principal residence. Moreover, the construction, renovation, modification or rebuilding of a system for the discharge, collection or disposal of waste water, grey water or toilet effluents must be carried out in accordance with the Regulation respecting waste water disposal systems for isolated dwellings (CQLR, chapter Q-2, r. 22).
- In addition to this refundable tax credit, you may be eligible for the financial assistance offered in respect of eco-friendly home renovation under the Rénoclimat program administered by the Ministère de l'Énergie et des Ressources naturelles.
For more information on the types of renovation work that qualify for the tax credit, see the list of recognized renovation work.