Renovating Your Home or Cottage in Quebec? You Might be Eligible for the EcoRenov Tax Credit

The EcoRenov tax credit was announced by the Quebec government in October, 2013 and it is available to homeowners to make specific renovations until November 1, 2014. A contract with a certified contractor or company must be in place between October 8, 2013 and November 1, 2014.

The way it works (from the website):

For 2013, you may be entitled to a tax credit equal to the lesser of the following for each eligible dwelling:

• $10,000
• 20% of the portion of your eligible expenses for 2013 that exceeds $2,500

For 2014, you may be entitled to a tax credit equal to the lesser of the following for each eligible dwelling:

• 20% of the portion of your eligible expenses for 2014 that exceeds the lesser of
  • $2,500, or
  • $2,500 minus the eligible expenses for 2013; and
• $10,000 minus any amount received in 2013 as a tax credit for eco-friendly renovation.

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The tax credit itself doesn’t turn out to be a huge savings incentive when you consider what your renovation cash output will be, but  it might contribute to getting a higher quality HVAC system than you might have been able to afford without it, or more insulation than you thought you could afford — which is like the gift that keeps on giving as it will lower your overall monthly running costs.

There is a list of qualifying actions you can make, including:

• Building envelope improvements (adding insulation, caulking, weatherstripping, door and window replacements, etc.),
• Heating and cooling equipment upgrades (very specific requirements),
• Upgrading your water heating system,
• Adding a gray water or rain water catchment system, or restoration of a buffer system between a body of water and waste effluent system,
• Adding solar photovoltaic or hot water panels, or a domestic wind turbine,
• Cleaning up contaminated soil,
• Adding a green roof.

Unlike the EcoEnergy Retrofit grant, it appears that an energy audit isn’t necessary to receive the tax credit, just have a qualified contractor fill out or sign the appropriate form. Energy audits are addressed under Quebec’s Renoclimat program, and still a good idea to perform one before you start any energy efficiency work as it will help you target your dollars where you’ll get the most value from your improvements.

For full details on the tax credit, visit Revenue Quebec’s EcoRenov tax credit page.