Business owners say the home renovation tax incentive unveiled in the federal budget will bolster business even though most haven’t felt the pains of recession so far.
The Home Renovation Tax Credit applies to home renovations that exceed $1,000 but doesn’t offer any benefits past the $10,000 mark. Projects such as painting, kitchen remodeling and replacing and roofing are eligible.
Victor Jarema, owner of By Town Renovations, says the tax credit included in the federal budget is a positive move.
“I imagine it will advance the timetable of renovations for a lot of people,” says Jarema.
Though pleased with the incentive, he says it will likely only give the industry a tiny boost.
His home renovations business at 1062 Silver St. hasn’t seen a decline in business since the economy has worsened. But he says the government should expand these measures to help other struggling industries weather the recession.
Merv McBride, owner of Handyman Connection, says he’s pleased with the tax credit. His company does small to medium home repairs eligible for the incentive.
“It’s a tax credit that fits into our business pretty well,” he says.
McBride’s business, located at 1550 Chatelain Ave., has seen a drop in sales when comparing December and January of this year to the previous year. The new tax incentive hasn’t translated into sales yet but he says customers have called to ask as to how it works.
Charles Dupuis, owner of Charles Dupuis Construction, says his initial response to the federal tax credit was optimistic.
“I think anything is going to help. I’m in favour of it,” he says.
Dupuis, located at 272 Breezehill Ave., says his business hasn’t been affected by the economic downturn – he’s booked through until spring. He says it’s a lot better than he’d been expecting.
Emile Salem, owner of Ottawa Home Improvements, says he expected to see a higher volume of customers even before the tax credit was announced,
“People are spending on renovating instead of moving into a new home,” he says, attributing this to the worsening economy.
His business, located at 69 Jamie Ave., has been quieter lately, but he says that this is normal for January. He expects the tax incentive to be effective in attracting customers.