Good economic times in Saskatchewan have already had many homeowners ordering new windows, landscaping their yards and fixing up basements.

Now Ottawa hopes to keep those home renovations rolling -- and kick-start them in other parts of the country -- by covering some of the costs.

The federal government's new, temporary home renovation tax credit, worth up to $1,350, is meant to spur spending as the country as a whole grapples with a recession.

The recent boom in Saskatchewan, however, has put pressure on renovation and landscaping businesses facing a shortage of skilled workers. Even so, Alan Thomarat, chief executive officer for the Canadian Home Builders' Association in Saskatchewan, said he expects people who want to take advantage of the tax credit during the limited time it's being made available will still be able to do so.

But Thomarat cautioned homeowners must be mindful not to be taken advantage of by "underground" contractors trying to cash in. He suggested a system of checks and balances be put in place to protect homeowners looking to make use of the new credit.

Some busy businesses in Saskatchewan -- which has so far escaped the brunt of the economic downturn -- say the added incentive to proceed with home improvement projects may encourage homeowners who have been sitting on the fence.

"I think it's a reasonable incentive," said Bill Allen, owner and manager of Wilson Windows of Regina.

"What it's going to do, I think, is stimulate those people that are procrastinators and they're going to do some work, (but) it's just going to motivate them to get on with it."

The program offers a 15 per cent income tax credit on eligible home renovation expenditures for work performed, or for goods acquired, after Jan. 27 and before Feb. 1, 2010. The credit may be claimed on the portion of eligible expenditures exceeding $1,000, but not more than $10,000 -- for a maximum of $1,350 in tax relief.

But such programs carry little benefit to the overall Canadian economy, said Eric Howe, an economist at the University of Saskatchewan.

"If you were to spend more in Saskatchewan, an infrastructure project would be a much, much better way of the government spending their money."

(REGINA LEADER-POST)

 

What do you think? Are you planning any renovations JUST to take advantage of these tax credits???

 

 We welcome your comments.       

Scott