Finance Minister Jim Flaherty tabled his fourth budget in Parliament today wearing steel toed boots in keeping with the theme of massive spending on infrastructure. There is plenty of print, broadcast and online coverage of the budget in the mainstream press, but if you are so inclined, you can read the entire 343-page document here. If you are only interested in the bits that directly affect your pocketbook, feel free to skip to the pages indicated below:
- Five Extra Weeks of EI Benefits: EI recipients will now receive five extra weeks of benefits for the next two years. (Page 95)
- Personal Income Tax Measures: Increase in basic personal amount to $10,320 and increase in the first two income tax brackets (the 15% bracket is increased to $40,726 and the 22% bracket to $81,452). These measures are retroactive to January 1, 2009. (Page 106) [Note: Check out Jon Chevreau’s column to figure out how much these measures will actually save in tax.]
- Home Renovation Tax Credit (HRTC): A temporary 15% tax credit on eligible home renovation expenditures done on a home, cottage or condo, after January 27, 2009 and before February 1, 2010. The tax credit can be claimed on the portion of eligible expenditures exceeding $1,000 but not more than $10,000 (i.e. a maximum tax credit of $1,350). Eligible expenses include renovating a kitchen, bathroom or basement, new carpet or hardwood floors, building a new deck, installing a new furnace or a water heater, painting the interior or exterior of a house, resurfacing the driveway, laying new sod, replacing windows etc. Routine repairs and maintenance does not qualify for the credit. Note to readers: Don’t throw away all those Home Depot or Rona receipts this year! (Page 123)
- Withdrawal Limit under the Home Buyers’ Plan Increased: After January 27, 2009, first-time home buyers can withdraw up to $25,000 from their RRSP under the Home Buyers’ Plan. (Page 127)
- First-Time Home Buyers’ Tax Credit: A $5,000 non-refundable tax credit for individuals acquiring a qualified home after January 27, 2009. The credit will result in a saving of $750 in taxes. (Page 128)
Other Coverage:
The Globe and Mail
National Post
