RénoVert Tax Credit
The period of eligibility for the RénoVert tax credit has been extended to March 31, 2018, for all recognized work other than work related to the 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 requirements set out in the Regulation respecting waste water disposal systems for isolated dwellings.
The work above for which the period of eligibility for the RénoVert tax credit has not been extended may qualify for the new tax credit for the upgrading of residential waste water treatment systems if it is carried out under a contract entered into with a contractor after March 31, 2017. For more information about the new tax credit, see form TP-1029.AE-V.
The RénoVert refundable tax credit was introduced on a temporary basis to encourage individuals to invest in recognized eco-friendly home renovation work that has a positive environmental impact and improves their dwelling's energy efficiency.
You can claim the credit if you have recognized eco-friendly home renovation work done on 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;
- a permanently installed prefabricated house or mobile home;
- an apartment in a building held in divided co-ownership (condominium);
- an apartment in a multiple-unit residential building;
- a winterized cottage that you normally occupy.
The renovation work must have been done by a qualified contractor under a contract entered into after March 17, 2016, and before April 1, 2018.
The maximum tax credit you can claim in respect of your eligible dwelling for 2016, 2017 and 2018 is $10,000. This corresponds to 20% of the portion of your qualified expenditures paid after March 17, 2016, and before January 1, 2019, that exceeds $2,500.
Qualified expenditures are all expenditures that 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, qualified expenditures 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, expenditures 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 qualified expenditures.
- 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, qualified expenditures include those paid by the syndicate of co-owners, up to your unit's share of the expenditures. 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 expenditures.
- In order for recognized eco-friendly renovation work concerning water conservation and quality 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 Transition énergétique Québec.
For more information on the types of renovation work that qualify for the tax credit, see the list of recognized renovation work.