SK Renovation Tax Credit

The Saskatchewan Home Improvement Tax Credit makes it more affordable for homeowners to renovate their home. Claim a non-refundable 10.5% provincial tax credit on eligible home renovation expenses undertaken on your primary residence between October 1st 2020 and December 31st, 2022.

Program Details:

• 2021 Provincial Tax Return (claim up to $11,000 in eligible renovation expenses)
  • Claim eligible renovation expenses incurred Oct 1, 2020 – Dec 31, 2021 (15-month period) on your 2021 provincial income tax.
  • Maximum eligible claim amount of $11,000, for a maximum tax credit of $1,155 ($11,000 in eligible expenses x 10.5% tax credit for a benefit of $1,155).
  • Minimum Eligible Claim Amount of $1000 (expenses up to $999 not eligible).
• 2022 Provincial Tax Return (claim up to $9,000 in eligible renovation expenses)
  • Claim eligible renovation expenses incurred Jan 1, 2022 – Dec 31, 2022 (12-month period) on your 2022 provincial income tax.
  • Maximum eligible claim amount of $9,000, for a maximum tax credit of $945 ($9,000 in eligible expenses x 10.5% tax credit for a benefit of $945).
  • Minimum Eligible Claim Amount of $1000 (expenses up to $999 not eligible).

Eligible Expenses:

• Eligible goods or services can be claimed for the tax credit during the period in which the costs were incurred.
• The total amount of eligible expenses being claimed each year under the Saskatchewan Home Renovation Tax Credit must be between $1,000 and the annual limit. (For example: If total eligible expenses of eligible home renovation expenses incurred in 2021 is $4,500, the maximum amount that can be claimed is $3,500. If total eligible expenses being claimed in 2021 is less than $1,000, the homeowner is not eligible to claim a tax credit.
• Only renovations undertaken to a homeowner’s primary residence will be eligible for the Saskatchewan Home Renovation Tax Credit.
• Either spouse in a married or common-law couple residing at the same address may claim the credit or they may divide eligible home renovation expenses between themselves in claiming the tax credit, up to the maximum total annual amount per residence.
• Eligible expenditures for condominiums and co-operative housing corporations include the individual’s share of the cost of renovating common areas, in addition to costs to renovate the unit.

How to Qualify Renovation Expenditures for Tax Credit:

• Renovation expenses must be incurred during the eligible period and supported by receipts which clearly identify:
  • The vendor / contractor
  • The date which the goods / services were purchased and / or provided
  • A description of the work performed and the address where the work was performed
  • The amount paid
• Expenditures do not qualify if the goods or services are provided by a person with whom the taxpayer is not dealing at arm’s length (i.e. a close relative) unless that person is registered to collect GST / PST.

Eligible Renovation Expenses:

Eligible renovations to a property must be of an enduring nature that are integral to the dwelling, including expenditures for the cost of labour and professional services, building materials, fixtures, and equipment rentals and permits.

• Examples of Eligible Expenditures: Renovating a kitchen, bathroom, or basement; Shingling a roof or renovating outdoor fixtures to a home; Installing new carpet or hardwood floors; Building an addition, deck, fence or retaining wall; Purchasing and installing a new furnace, water heater or solar panels (mechanical items considered to be of an enduring addition to the home); Painting the interior or exterior of a house; Resurfacing a driveway. Laying new sod.
• Examples of Non-eligible Expenditures: Routine repairs and maintenance typically performed on an annual or more frequent basis (such as carpet cleaning); Furniture, draperies, appliances and mechanical items not considered to be an enduring addition to the home (i.e. refrigerator, stove, couch, jacuzzi); Audio-visual electronics; Expenditures that have a value independent of the renovation, such as construction equipment and tools; Maintenance contracts (furnace cleaning, snow removal, lawn care, pool cleaning, etc); Financing costs.

For more information about the Saskatchewan Renovation Tax Credit and to confirm eligibility, consult your tax professional or see Backgrounder: The Saskatchewan Home Renovation Tax Credit