Budget 2010
Budget won't extend home renovation tax credit
Government official says 2010 budget won't include any new spending or tax measures like last year's popular home renovation program
Campbell Clark
Ottawa — Published on Monday, Feb. 22, 2010 4:52PM EST Last updated on Monday, Feb. 22, 2010 4:54PM EST
The popular homeowner's tax credit
that ran out in February will not be extended as the Harper government won't add any new spending or tax measures in its March 4 budget, a senior government official says.
Finance Minister Jim Flaherty intends to stick to handing out the second year of stimulus-spending cash it announced last year in its 2009 budget – some $19-billion in spending was earmarked for this year.
But it does not intend to extend any of the ones that have already expired like the homeowners' credit, which allowed Canadians to claim up to $1,350 on renovations worth between $1,000 and $10,000, or extend recession-time employment-insurance top-ups.
“I don't anticipate any new spending in budget 2010,” said a senior government official who briefed reporters Monday. The official said there will also not be any new tax hikes or tax cuts.
It means the focus for the March 4 budget will shift to the Harper government's plans for cutting the deficit after 2011. The government will use the budget to lay out a multi-year plan for reducing the deficit, which is expected to hit $56-billion this year.
