The Saskatchewan Party said it is making good on an election promise to make home renovations more affordable.
Under the Saskatchewan Home Renovation Tax Credit, which was introduced in the legislature on Thursday, homeowners can claim a tax credit of 10.5 per cent on up to $20,000 in eligible renovation costs.
“This new tax credit will make the cost of home renovations more affordable and will help drive Saskatchewan’s economic recovery,” Finance Minister Donna Harpauer said in a statement.
“It’s part of our government’s plan for a strong recovery and a strong Saskatchewan.”
Under the plan, homeowners can claim up to $11,000 in total qualified expenses incurred between Oct. 1 and Dec. 31, 2021, in the first year of the program.
In the second year, the maximum claim is $9,000 on total qualified expenses between Jan. 1 and Dec. 31, 2022.
Government officials said this could save homeowners up to $2,100 in provincial income tax.
Eligible expenses include labour costs, building materials, fixtures, equipment rentals and permits. Furniture, appliances, hot tubs, tools and maintenance services such as carpet or furnace cleaning are not claimable, the government said.
Renovations can only be on a homeowner’s principal residence in the province and must be substantially complete by Dec. 31, 2022.
“This new tax credit is an incentive to spend, build and hire,” Harpauer said.
“Combined with the PST reduction on new home construction in the June 2020 budget, this new credit will increase construction activity in the province, create jobs, and help drive Saskatchewan’s economic recovery.”
The new tax credit, which the government estimates will cost $124 million over two years, will be administered by the Canada Revenue Agency.