June 6, 2009

Real Action. Real Results

The economic stimulus for Canadian homeowners will create jobs and help Canada’s economy stay on track. The Government of Canada has delivered unprecedented action to stimulate the Canadian economy by introducing numerous measures to assist Canadians and their families.

In early 2009, Minister Raitt launched national consultations with provincial and territorial governments aimed at improving investments for Canadian families. Since these consultations, the Conservative Government has delivered its Economic Action Plan, which accelerates and expands unprecedented investments in funding for home retrofits and renovations, tax credits for new homebuyers and personal income tax relief for all Canadians. These are some of the measures designed to create jobs and stimulate the economy in the short term, as well as build the legacy of Canadian communities for years to come.

Progress to Date

• The average grant paid to homeowners since April 1, 2009, has increased by almost $300 to more than $1,400.
• Homeowners who have completed energy-efficiency retrofits have reduced their annual home energy costs by an average of $500.
• More than 100,000 homeowners have received over $112 million in grants since the ecoENERGY Retrofit – Homes program began.
• The average number of pre-retrofit evaluations per month has increased by more than 75 percent (from fewer than 12,000 to more than 21,000 for the same period last year).
• The Home Renovation Tax Credit, worth up to $1,350, is available to homeowners who undertake to make improvements to their home or property between now and February 1, 2010.
• The First-Time Home Buyer’s Tax Credit, worth up to $750, assists first-time homebuyers with the costs associated with the purchase of a home.
• The Economic Action Plan also increases the amount Canadians are allowed to withdraw from their RRSPs under the Home Buyers’ Plan, increasing the limits from $20,000 to $25,000. This $5,000 increase is the first time the limit has been raised since 1992 and means that a couple will be able to withdraw up to $50,000 from their RRSP funds toward the purchase of their first home.

In addition to the dramatic increase in pre-retrofit energy evaluations in the first months of the expanded ecoENERGY Retrofit program, a new survey suggests Canadians are also ready to take advantage of other Economic Action Plan measures to buy their first home or renovate their existing home.

The survey, conducted by Canada Mortgage and Housing Corporation (CMHC), found that 1.9 million Canadians in five major centres across the country intend to carry out home renovations this year, compared to 1.6 million in 2008, an increase of more than 15 per cent from last year. It also found that of Canadians in 10 major centres who plan to buy a home this year, almost half are first-time buyers — up substantially from last year, when 36 percent of Canadians who bought homes were first-time buyers.

Encouraging more Canadians to buy a first home and to renovate and increase the energy efficiency of their existing homes will help create and secure jobs for thousands of Canadians and generate new economic activity across the country.

It is important to note that for the ecoENERGY Retrofit – Homes Program, unlike the Home Renovation Tax Credit, homeowners must first have a home energy evaluation before any renovations are begun to be eligible for the ecoENERGY grant. The evaluation helps homeowners determine the best energy upgrades for their particular situation.

Next Steps

Under the Economic Action Plan, the Government of Canada is providing significant measures that will deliver immediate economic stimulus by encouraging Canadians to renovate and buy homes.

For example, for every dollar the Government of Canada invests in the expanded ecoENERGY Retrofit – Homes initiative, it is expected that Canadian homeowners will invest approximately $10 in products and services to increase the energy efficiency of their homes. Consequently, this Economic Action Plan investment will generate $2.4 billion in economic activity across Canada.

To learn more about the ecoENERGY Retrofit – Homes program, the Home Renovation Tax Credit, the First-Time Home Buyers’ Tax Credit and Increasing RRSP Withdrawal Limits under the Home Buyers’ Plan, visit www.actionplan.gc.ca.

Additional financial incentives for energy efficiency retrofits may be offered by your province or territory; for these opportunities, visit the Office of Energy Efficiency Web site.