Published | Category: Income tax - individuals

Note: Changes have been made to sections B1 and B3 of the list of recognized eco-friendly renovation work below to correct errors identified by the Ministère des Finances et de l'Économie on November 8, 2013.

Tax Credit for Eco-Friendly Home Renovation (EcoRenov)

A temporary refundable tax credit for eco-friendly home renovation has been introduced.

The tax credit is intended for individuals who have a qualified contractor carry out eco-friendly renovation work on their principal place of residence or cottage under a contract entered into after October 7, 2013, and before November 1, 2014.

The amount of the tax credit corresponds to 20% of the portion of an individual's eligible expenses that exceeds $2,500, up to a maximum tax credit of $10,000 per eligible dwelling.

To qualify for the tax credit, the work must have a positive environmental impact or improve the dwelling's energy efficiency, and the materials and appliances involved must meet recognized environmental and energy standards.

The contractor that carried out the work must certify that those standards are met by completing and signing form TP-1029.ER.A-V, Certificate of Compliance With Energy and Environmental Standards, and giving it to the individual for whom the work was done.

The various types of recognized eco-friendly renovation work are listed below.

For more information, contact us.

Recognized eco-friendly renovation work

A. Work relating to the envelope of the dwelling

A1 Insulation of the roof, exterior walls, foundations and exposed floors

  • The insulation materials used for insulation must not contain urea formaldehyde or they must have low levels of volatile organic compounds (VOC) certified GREENGUARD or EcoLogo environmental choice. In addition, the insulating value must satisfy the following standards:
    • insulation of the attic: the insulating value achieved must be at least R-41 (RSI 7.22);
    • insulation of the flat roof or cathedral ceiling: the insulating value achieved must be at least R-28 (RSI 4.93);
    • insulation of the exterior walls: the increase in the insulating value must be at least R-3.8 (RSI 0.67);
    • insulation of the basement (including the header area): for the walls, the insulating value achieved must be at least R-17 (RSI 3.0), while for the header area, the insulating value achieved must be at least R-20 (RSI 3.52);
    • insulation of the crawl space (including the header area): for the exterior walls (including header area), the insulating value achieved must be at least R-17 (RSI 3.0), while for the floor area above the crawl space, the insulating value achieved must be at least R-24 (RSI 4.23);
    • insulation of exposed floors: the insulating value achieved must be at least R-29.5 (RSI 5.20).

A2 Sealing

  • Water-proof sealing of the foundations.
  • Air sealing of the envelope of the dwelling or of a portion of it (walls, doors, windows, skylights, etc.).

A3 Installation of doors or windows

  • Replacement or addition of doors, windows and skylights with ENERGY STAR qualified models for the climate zone where the dwelling is located.

B. Work relating to the mechanical systems of the dwelling

B1 Heating system

  • Replacement of a propane or natural gas heating system appliance with one of the following appliances using the same fuel:
    • an ENERGY STAR qualified furnace with an annual fuel utilization efficiency (AFUE) of at least 95% and equipped with a brushless direct current (DC) motor;
    • a zero-clearance furnace with an AFUE of at least 95%, if the dwelling is a mobile home;
    • an ENERGY STAR qualified boiler with an AFUE of at least 95%.
  • Replacement of an indoor wood-burning system or appliance with one of the following:
    • an indoor wood-burning system or appliance that complies with the CSA-B415.1-10 standard or the 40 CFR Part 60 Subpart AAA standard of the Environmental Protection Agency (EPA) of the United States on wood-burning appliances. However, appliances not tested by the EPA are not eligible unless they have been certified under the CSA-B415.1-10 standard;
    • an indoor pellet-burning appliance (including stoves, furnaces and boilers that burn wood, corn, grain or cherry pits);
    • an indoor masonry heater.
  • Replacement of a solid fuel-fired outdoor boiler with an outdoor wood-burning heating system that complies with the CAN/CSA-B415.1 standard or the Outdoor Wood-fired Hydronic Heater program of the Environmental Protection Agency (EPA) (OWHH Method 28, phase 1 or 2), provided the capacity of the new system is equal to or smaller than the capacity of the one it replaces.
  • Installation of an ENERGY STAR qualified central split or ductless mini-split air-source heat pump including an outdoor unit and at least one indoor head per floor (excluding the basement) that has an Air-Conditioning, Heating, and Refrigeration Institute (AHRI) number and satisfies the following minimum requirements:
    • a Seasonal Energy Efficiency Ratio (SEER) of 14.5;
    • an Energy Efficiency Ratio (EER) of 12.0;
    • a Heating Seasonal Performance Factor (HSPF) of 7.1 for region V;
    • a heating capacity of 12 000 Btu/h.
  • Installation of a geothermal system certified by the Canadian GeoExchange Coalition (CGC). A CGC-certified company must install the heat pump in accordance with the CAN/CSA-C448 standard. The CGC must also certify the system after installation.
  • Replacement of the heat pump of an existing geothermal system. A company certified by the Canadian GeoExchange Coalition (CGC) must install the heat pump in accordance with the CAN/CSA-C448 standard.
  • Replacement of a heating oil system with a system using propane or natural gas or replacement of a propane heating system with a system using natural gas, provided the new system uses one of the following heating appliances:
    • an ENERGY STAR qualified furnace with an annual fuel utilization efficiency (AFUE) of at least 95% and equipped with a brushless direct current (DC) motor;
    • a zero-clearance furnace with an AFUE of at least 95%, if the dwelling is a mobile home;
    • an ENERGY STAR qualified boiler with an AFUE of at least 95%.
  • Replacement of a heating oil, propane or natural gas system with a system using electricity.
  • Replacement of a heating oil, propane, natural gas or electricity system with a qualified integrated mechanical system (IMS) that is CSA-P.10-07 certified and achieves the premium performance rating.(1)
  • Installation of solar thermal panels that comply with the CAN/CSA-F378 standard.
  • Installation of combined photovoltaic-thermal solar panels that comply with the CAN/CSA-C61215-08 and CAN/CSA-F378 standards.

B2 Cooling system

  • Replacement of a window air-conditioning unit or central air-conditioning system with an ENERGY STAR qualified central split or ductless mini-split air-conditioning system including an outdoor unit and at least one indoor head per floor (excluding the basement), provided the appliance has an Air-Conditioning, Heating, and Refrigeration Institute (AHRI) number and satisfies the following minimum requirements:
    • a Seasonal Energy Efficiency Ratio (SEER) of 14.5;
    • an Energy Efficiency Ratio (EER) of 12.0.
  • Replacement of a central air-conditioning system with an ENERGY STAR qualified central split or ductless mini-split air-source heat pump including an outdoor unit and at least one indoor head per floor (excluding the basement) that has an Air-Conditioning, Heating, and Refrigeration Institute (AHRI) number and satisfies the following minimum requirements:
    • a Seasonal Energy Efficiency Ratio (SEER) of 14.5;
    • an Energy Efficiency Ratio (EER) of 12.0;
    • a Heating Seasonal Performance Factor (HSPF) of 7.1 for region V;
    • a heating capacity of 12 000 Btu/h.

B3 Hot water system

  • Replacement of a propane or natural gas water heater with one of the following appliances using the same fuel:
    • an ENERGY STAR qualified instantaneous water heater that has an energy factor (EF) of at least 0.82;
    • an ENERGY STAR qualified instantaneous condensing water heater that has an EF of at least 0.90;
    • a condensing storage-type water heater that has a thermal efficiency of at least 95%.
  • Replacement of an oil-fired water heater with a water heater using propane or natural gas or replacement of a propane-fired water heater with a water heater using natural gas, provided the new water heater is one of the following:
    • an ENERGY STAR qualified instantaneous water heater that has an energy factor (EF) of at least 0.82;
    • an ENERGY STAR qualified instantaneous condensing water heater that has an EF of at least 0.90;
    • a condensing storage-type water heater that has a thermal efficiency of at least 95%.
  • Replacement of a heating oil, propane or natural gas water heater with a water heater using electricity.
  • Installation of a solar hot water system that provides a minimum energy contribution of seven gigajoules per year (GJ/yr) and is CAN/CSA-F379 certified, provided such system appears on the CanmetENERGY Performance Directory of Solar Domestic Hot Water Systems.
  • Installation of a drain-water heat recovery system.
  • Installation of solar thermal panels that comply with the CAN/CSA-F378 standard.
  • Installation of combined photovoltaic-thermal solar panels that comply with the CAN/CSA-C61215-08 and CAN/CSA-F378 standards.

B4 Ventilation system

  • Installation of an ENERGY STAR qualified heat recovery ventilator or energy-recovery ventilator certified by the Home Ventilating Institute (HVI) and listed in Section 3 of their product directory (Certified Home Ventilating Products Directory). In addition, where installation makes it possible to replace an older ventilator, the new appliance must be more efficient than the older one.

C. Water conservation and quality

  • Installation of an underground rain water recovery tank.
  • Construction, renovation, modification or rebuilding of a system for the discharge, collection and disposal of waste water, toilet effluents or grey water in accordance with the Regulation respecting waste water disposal systems for isolated dwellings.(2)
  • Restoration of a buffer strip in accordance with the requirements of the Protection Policy for Lakeshores, Riverbanks, Littoral Zones and Floodplains.(3)

D. Soil quality

  • Decontamination of fuel oil-contaminated soil in accordance with the requirements of the Soil Protection and Contaminated Sites Rehabilitation Policy.(4)

E. Other

  • Construction of a green roof.(5)
  • Installation of photovoltaic solar panels that comply with the CAN/CSA-C61215-08 standard.
  • Installation of a domestic wind turbine that complies with the CAN/CSA-C61400-2-08 standard.

(1) This system encompasses the domestic heating, ventilation and heat recovery functions.

(2) CQLR, chapter Q-2, r. 22.

(3) CQLR, chapter Q-2, r. 35. This policy is applied in accordance with municipal zoning and urban planning bylaws.

(4) This policy is published by Les Publications du Québec and is available on the Ministère du Développement durable, de l'Environnement, de la Faune et des Parcs website at www.mddefp.gouv.qc.ca/sol/terrains/politique-en/.

(5) For greater clarity, a green roof is a roof that is fully or partially covered with vegetation and that includes a waterproof membrane, a drainage membrane and a growth medium to protect the roof and host vegetation.

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