Federal Budget 2010 – Mixed news for home buyers and homeowners

Good-bye

The Home Renovation Tax Credit was not extended. Under the program which expired January 31, 2010, home-owners received up to $1,350 in tax relief for home renovation projects costing $1,000 - $10,000.

Hello

ecoENERGY retrofit program: homeowners who make their homes more for energy-efficient, can claim tax credits.

Employment Insurance (EI): Self-employed Canadians, including REALTORS® will be eligible for EI special benefits – maternity, parental, compassionate care and sick leave. This is a voluntary opt-in program, lobbied for by the Canadian Real Estate Association (CREA).

Major projects construction: $7.7 billion Canada-wide will create jobs in infrastructure building (highway upgrades, port upgrades, and new community centres) to keep Canadians working.

Temporary 100% capital cost allowance rate for computers: to help businesses with new technology, the government offers a temporary two-year, 100% CCA rate for computers bought before February 1, 2011.

Staying

• The First-time Home Buyers' Tax Credit remains. Qualifying home, buyers are eligible for this tax credit, worth $750.
• The Home Buyers’ Plan remains. Home buyers can withdraw up to $25,000 from their RRSP for a downpayment. Couples can withdraw $50,000. CREA lobbied for this initiative.

New initiatives

• Standardize the calculation and disclosure of mortgage pre-payment penalties.
• Establish a Red Tape Reduction Commission which will include representatives from the private sector.