The Quebec Liberal party is proposing a home renovation tax credit to stimulate the economy.
Philippe Couillard said the refundable tax credit would cover 20 percent of work done to a home, with homeowners receiving a maximum refund of $2,500.
The credit would only apply to projects that cost at least $3,000, and would run until December 2016.
The Liberals would also maintain the PQ's existing 'Green' tax credit until October 2014, so for a while there would be two home renovation tax credits.
"If you want to qualify for the $2,500 tax credit you need to show your bills and you need to show that taxes have been paid," said Couillard.
"It's well known that not only does it create jobs it also acts as a deterrent, I would say, to the underground economy."
The home building industry rakes in $15 billion a year but a good chunk escapes the tax man.
Hardware store owner Johnny Gold says what's great about a general tax credit is that it's flexible – it’s not just for “green” fixes that promote eco-friendliness, but for all fixes.
Gold has lots of products to offer, but he says home repairs are the first thing people put off in a difficult economy.
And his Dorval company has felt the pinch lately, so he welcomes the Liberals’ plan.
“It encourages clients to spend some money it encourages clients to spend with license contractors and to do it legitimately rather than find the little hook and ladder guy and try to save a few bucks,” he said.
The proposed tax credit would apply to people of all income brackets and owners of homes and condos, and to all renovations.
Under the existing tax credit an owner can replace windows to make them more energy efficient, but cannot use the credit for general repairs such as upgrading a bathroom.
