Over 3 million Canadians and counting have taken advantage of the HRTC – a key component of the first phase of Canada's Economic Action Plan. The average tax savings was over $700 per claimant. This represents about one out of every three owner‑occupied households.
"Our Government's multi-faceted approach to economic stimulus kept the economy churning throughout the toughest times of the recession and we continue to see positive impacts as a result," said Ed Fast, Member of Parliament for Abbotsford. "Our Government's initiatives to keep the Canadian economy strong during the recession are clearly working."
"By encouraging Canadians to invest in their home with this tax relief, our Government gave a timely boost to the Canadian economy that helped maintain jobs in areas such as home renovation, construction, retail, and forestry that could have otherwise been lost to the effects of the recession," said Minister of National Revenue Keith Ashfield, "It also put more money back into the pockets of hardworking Canadians for investing in their home, a family's most important investment."
The HRTC gave the Canadian economy a shot in the arm in the midst of the worldwide economic crisis. With support from the HRTC, real spending on residential renovations rebounded strongly in Canada, increasing by an average of 18.1% from the second quarter of 2009 through the first quarter of 2010. Analysts have estimated it pumped an additional $4.3 billion in renovation investment into the economy, at a time when the recession would have reduced investment in that sector.
Industry has been virtually unanimous on the strong positive impact this measure had on the economy. For instance, Victor Fiume, National President of the Canadian Home Builders' Association, said, "the HRTC increased economic activity, created jobs, and demonstrated confidence among consumers in using professional renovators. It's done a lot of good for our industry and for consumers and obviously has kept the industry stronger in these tough times and in job creation as well."
The Home Renovation Tax Credit was a temporary, non-refundable tax credit and was key component of Canada's Economic Action plan.