New Tax Credit Will Make Home Renovations More AffordableSeptember 30, 2020
A re-elected Saskatchewan Party government will introduce a new Saskatchewan Home Renovation Tax Credit to make the cost of home renovations more affordable and help drive Saskatchewan's economic recovery.
Premier Scott Moe made the announcement today in Saskatoon.
"This is our first campaign commitment and it's part of our plan for making life more affordable for Saskatchewan people," Moe said. "It's also part of our plan for a strong recovery and a strong Saskatchewan.
"In this year's budget, we reduced the PST on new home construction. We also want to provide a break to those who are fixing up their existing home. This new Home Renovation Tax Credit does just that."
Moe said in addition to reducing costs to homeowners, the PST reduction on new home construction and the new Home Renovation Tax Credit will increase construction activity in the province and help drive Saskatchewan's economic recovery.
Under the new Saskatchewan Home Renovation Tax Credit, homeowners will be able to claim a 10.5 per cent tax credit on up to $20,000 of eligible home renovation expenses incurred between October 1, 2020 and December 31, 2022, saving them up to $2100.
Eligible expenses will include permanent additions to the home but will not include items like furniture, appliances, hot tubs, tools or maintenance like carpet or furnace cleaning.
The new program is estimated to cost $124 million over two years.
"That's $124 million of direct savings to Saskatchewan people," Moe said. "It's an incentive to spend, build and hire, which helps drive a strong recovery. This is on top of $7.5 billion in infrastructure investments over two years to build hospitals, schools and highways and support over 27,000 jobs in Saskatchewan.
"A strong economic recovery, more jobs and making life more affordable for Saskatchewan homeowners – it's part of our plan for a strong Saskatchewan."
Backgrounder: The Saskatchewan Home Renovation Tax Credit