In an attempt to create jobs in industries typically hurt by an economic downturn such as construction, government approved the Home Renovation Tax Credit (HRTC).

Now through January 31, 2010, homeowners can claim a tax credit for 15% of renovation expenses between $1000 and $10,000. These include work performed or goods acquired after January 27, 2009 and before Feb 1, 2010. The credit may be claimed for 2009 tax year. Here's a sample of what qualifies under the program and what does not.

Eligibility for the HRTC is family-based. Meaning a family consists of an individual, his/her spouse and children that are throughout 2009 under 18 years of age.

What's eligible and what's not for the Home Renovation Tax Credit?

Eligible:
- Renovating a kitchen, bathroom or basement
- New carpet or hardwood floors
- Building an addition, deck, fence or retaining wall
- A new furnace or water heater
- Painting the interior or exterior of a house
- Resurfacing a driveway
- Laying new sod

Ineligible:
- Purchase of furniture and appliances (e.g. refrigerator, stove, couch)
- Purchase of tools
- Carpet cleaning
- Maintenance contracts (e.g. furnace cleaning, snow removal, lawn care and pool cleaning)