Does the Home Renovation Tax Credit apply to Landscaping and Landscape Upgrades?

In a recent conversation with a Chartered Accountant contact of mine, who heads up the taxation department for a major multi-national software company with a major presence here in Vancouver, I asked the question

“will homeowners be able to claim landscaping services or landscaping upgrades under the Home Renovation Tax Credit (HRTC)?”

In response she sent me an excerpt from a recent note available to the CA’s in Canada.

PRINCIPAL ISSUES:
Do landscaping costs, including associated landscape design costs, qualify for the HRTC?
POSITION:
Generally, yes
REASONS:
Eligible expenditures for the home renovation tax credit include only expenditures that relate to a renovation or an alteration of an eligible dwelling (including land) that is enduring in nature and integral to the dwelling. The cost and installation of the following landscaping items will qualify for the HRTC: new sod, perennial shrubs and flowers, trees, large rocks, permanent garden lighting, permanent water fountain, permanent ponds, permanent irrigation systems, large permanent garden ornaments, and retaining walls

The cost of professional landscape design services related to those eligible expenditures, would generally qualify for the HRTC. If the expenses are part of routine repairs and maintenance, normally performed on an annual or more frequent basis, the costs would not qualify for the HRTC.

So use this information to incorporate into your presentation to your prospective client.

Contact me directly and I will share with you, a very simple tactic for turning this tax credit into increased volume and profit!

Rick