by Guest

Lennox Industries, a leading provider of customized home heating, cooling and indoor air quality products,  introduced the patent pending SunSource™ Home Energy System – a new solar-powered central heating and cooling system that reduces overall household electricity consumption without the costs associated with traditional solar installations – at the International Builder’s Show in Las Vegas this week.

The new SunSource Home Energy System not only harnesses solar energy from the sun to reduce the electricity consumed by a residential heat pump or air conditioner, but also is able to use that solar power to operate other devices in the home that consume electricity, such as lighting and appliances, when the heating and cooling system is not running. In addition, if the SunSource system generates more power than is used by the home, that power will be sent back to the utility company, which may entitle the homeowner to a credit on their utility bill.

According to the U.S. Department of Energy, the typical U.S. household pays $2,200 a year on utility bills, and the bulk of those energy costs – between 50 and 60 percent – comes from heating and cooling the home.

The SunSource Home Energy System is composed of:

• A solar-ready, high efficiency Lennox air conditioner or heat pump that has been specially enhanced to serve as the platform for this new home energy system.

• A Lennox solar subpanel that provides the connection between utility- interactive solar power system and the HVAC unit.

• One to 15 roof-mounted solar modules that harness clean, sustainable energy from the sun and use it to run the home’s central heating and cooling system as well as other appliances – the more modules, the more homeowners can reduce their utility costs.

• A communications system that allows homeowners to monitor each solar module’s operation and energy production online, as well as other environmental benefits such as the amount of carbon offset.

Energy Savings and Tax Credits Equal Real Cost Savings for Homeowners

As an example, a consumer who lives in a typical 2,000-square-foot home in Corpus Christi, Texas, can reduce the electricity usage associated with heating and cooling his or her home by approximately 12 percent annually by installing a Lennox high-efficiency air conditioner(1) with two solar modules and by 86 percent by installing the air conditioner with 15 modules. In Tulsa, Okla., the homeowner would see around a 25 percent reduction in air conditioner electricity usage with two solar modules, and about a 180 percent reduction (meaning more energy production than air conditioner consumption) with 15 modules. The savings increase even more in sunnier areas of the country.

In addition to the costs savings and incentives offered by many local utility companies for using high-efficiency heating and cooling equipment and/or renewable energy sources, the new SunSource system makes homeowners eligible for federal and some state solar tax credits. In fact, these benefits, when combined, can cover up to 94 percent of the cost of the solar modules, including installation(2).

The new Lennox SunSource Home Energy System will be available with several products from the Dave Lennox Signature® Collection, which is the company’s line of premium heating and cooling products, offering the quietest, most efficient operation and a premier level of performance. The Lennox SunSource Home Energy System may be paired with Dave Lennox Signature Collection air conditioners and heat pumps beginning in May 2010.

About Lennox Industries

Lennox Industries is a leading provider of customized home heating, cooling and indoor air quality products that are designed to deliver customized comfort, efficiency and functionality, with the most innovative and reliable features available. Lennox is also the first heating and air conditioning manufacturer to harness solar energy for central heating and cooling – and beyond. The U.S. Environmental Protection Agency and the Department of Energy have selected Lennox as an ENERGY STAR Manufacturer of the Year four out of six years for its outstanding contribution to developing and promoting energy-efficient products. For more information about Lennox home comfort products, visit www.Lennox.com or call 1-800-9-LENNOX.

# # #

(1) Energy savings calculations are based on a Lennox XC21-036 air conditioner, which has a 20 SEER (seasonal energy efficiency rating).

(2) Depends on local and state incentives in homeowner’s area. Typical incentives range between 30 percent and 94 percent of the cost of the solar modules, including installation.

The Homeowner’s Guide to Managing A Renovation, Tough-As-Nails Tactics for Getting the Most from Your Money by Susan E. Solakian

Who: “Solakian has spent much of her career in construction project management. She teaches informational/marketing seminars for designers and craftsmen, as well as a Complete Remodeling Master Class for homeowners.”

What: A comprehensive guidebook on how to manage your own home remodeling projects, with step by step advice on how to find a contractor, useful glossary, helpful charts (like how long things last - wow, high grade ceramic tile kitchen counters can last a lifetime vrs your granite that will last for 20 + years), with plenty of before and after photos.

When: Perfect for the initiated and research stage

Why: Geared somewhat towards the female home owner (statistically more women are the driving force behind home improvement) with fun segments like how to throw an design/idea party.

How: Retails for $19.95 US, find it online at sites like Amazon.com

To download the fact sheet in PDF, please click the link. home-renovation-tax-credit-credit-d’impot-pour-la-renov-dom

We were recently contacted with further information to provide homeowners with facts about the 2009 Home Renovation Tax Credit. Great timing since there have been many interesting questions about what projects, materials, or labour are applicable for this credit.

Image provided by Sico Paints

To view the webpages, visit:   http://www.cra-arc.gc.ca/hrtc/

Below, is the FAQ page content, which hopefully will answer some of your questions about how you can benefit from this tax credit.

Here is the link of the page: http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhmrnvtn-eng.html

FAQS

1. What is the Home Renovation Tax Credit (HRTC)?

The proposed HRTC is a non-refundable tax credit for work performed or goods acquired in respect of an eligible dwelling.

2. What is meant by eligible dwelling?

An eligible dwelling is a housing unit that is eligible to be an individual’s principal residence or that of one or more of their family members, at any time between January 27, 2009 and February 1, 2010. In general, a housing unit is considered eligible to be an individual’s principal residence where it is owned by the individual and ordinarily inhabited by the individual, the individual’s spouse or common-law partner, or their children. This means that any dwelling that you own and use personally could qualify, including your home or your cottage.

3. What is the eligibility period?

The credit will be based on eligible expenditures for work performed or goods acquired after January 27, 2009, and before February 1, 2010. Expenditures incurred pursuant to an agreement that was entered into before January 28, 2009, will not be eligible for the credit.

4. Who will be eligible for the credit?

Eligibility for the HRTC will be family based. A family will generally be considered to consist of an individual or an individual and his or her spouse or common-law partner, including children who will be under 18 years of age, at the end of 2009. A family will be allowed a single credit that may be shared within the family.

If two or more families share the ownership of an eligible dwelling, each family will be eligible for their own separate credit (i.e. each up to $1,350) that will be calculated on their respective eligible expenditures.

5. How will the credit be calculated?

The credit will only be available for the 2009 tax year and applies to eligible expenditures of more than $1,000, but not more than $10,000, resulting in a maximum credit of $1,350 ($9,000 x 15%).

6. What are eligible expenditures?

To be eligible, expenditures incurred in relation to a renovation or alteration to an eligible dwelling (or the land that forms part of the eligible dwelling) must be of an enduring nature and integral to the dwelling, and includes the cost of labour and professional services, building materials, fixtures, rentals, and permits.

Eligible expenditures must be supported by acceptable documentation.

7. What does the CRA consider to be acceptable documentation?

Documentation, such as agreements, invoices, and receipts, must clearly identify the type and quantity of goods purchased or services provided, including, but not limited to, the following information:

• information that clearly identifies the vendor/contractor, their business address and, if applicable, the GST/HST registration number;
• a description of the goods and the date when the goods were purchased;
• The date when the goods were delivered (keep your delivery slip as proof) and/or when the work or services were performed;
• A description of the work performed including the address where the work was performed;
• the amount of the invoice; and
• proof of payment.  Receipts or invoices must indicate paid in full or be accompanied by other proof of payment, such as a credit card slip or cancelled cheque.

Please consult our Underground Economy Web page, for tips to protect yourself when hiring a contractor.

To verify whether someone is registered for GST/HST, please consult the GST/HST Registry.

8. If I own both a house and a cottage and incur eligible expenditures for both, are both sets of expenditures eligible for the HRTC?

If you own and use your home and cottage personally, eligible expenditures incurred for both properties will normally qualify for the HRTC. Please note that the maximum amount of eligible expenditures you can claim in respect of the HRTC is $10,000 per family.

9. I am planning to replace my windows in 2009: can I hire my brother-in-law to help me out and still be eligible?

It depends. Expenditures will not be eligible if the related goods or services are provided by a person not dealing at arm’s length with the individual, unless that person is registered for the Goods and Services Tax/Harmonized Sales Tax under the Excise Tax Act. So, in your case, if your brother-in-law is registered for GST/HST and if all other conditions are met, the expenditure will be eligible for the credit.

10. Will expenditures for the common areas of condominiums and co-operative housing corporations qualify for the credit?

In the case of condominiums and co-operative housing corporations, the individual’s share of the cost of eligible expenditures for common areas will qualify.

11. I rent out my basement. If I renovate the basement for my tenant, will I be allowed to claim the credit?

No. Individuals who earn business or rental income from part of their principal residence will be allowed to claim the credit only for expenditures made for the personal-use areas of the residence.

For expenditures made for common areas or that benefit the housing unit as a whole (such as re-shingling a roof), you must divide the expense between personal use and income-earning use. For further information, please consult the Business and Professional Income Guide or the Rental Income Guide, as applicable.

12. If an eligible expenditure also qualifies for the Medical Expense Tax Credit (METC), will I be allowed to claim both the HRTC and METC?

Yes. Where an eligible expenditure qualifies for the METC the individual will be permitted to claim both the METC and the HRTC for that expenditure.

13. Will the credit be reduced by other government grants or credits that I may receive for the same expenditures?

No. Eligible expenditures will not be reduced by other government tax credits or grants that the individual may be entitled to.

14. Does work performed by electricians, plumbers, carpenters, architects, etc. qualify?

Generally, work performed by electricians, plumbers, carpenters, architects, etc. in respect of an eligible expenditure will qualify. See below for examples of eligible expenditures. If you’re planning on hiring a contractor to do construction, renovation, or repair work on your home, the Get it in Writing! Web site has information that will help you.

15. Could you provide me with some examples of eligible and ineligible expenditures?

Yes, some examples are:

16. What types of expenditures will not qualify?

The following expenditures will not be eligible for the HRTC:

• the cost of routine repairs and maintenance normally performed on an annual or more frequent basis;
• expenditures that are not integral to the dwelling, and other indirect expenditures that retain a value independent of the renovation;
• expenditures for appliances and audio-visual electronics; and
• financing costs.

17. Do I have to submit any supporting documents with my income tax return?

No. However, you must ensure that this information is available, should it be requested by the CRA.

18. How will I claim the HRTC?

A new line will be incorporated in the 2009 personal income tax return to allow you to claim the credit.

19. Where can I get more information about this new tax credit?

Additional information will be posted on the CRA’s Web site as it becomes available. In the meantime, please see the Department of Finance’s Budget 2009 documents for details.

20. The Budget also mentions the ecoENERGY Retrofit – Homes grant. What is it and how can I obtain more information?

The ecoENERGY Retrofit – Homes grant is administered by Natural Resources Canada. The grant applies to a host of measures that reduce energy consumption and provide for a cleaner environment. Home and property owners could be eligible for federal grants of up to $5,000 to offset the cost of making energy efficiency improvements to their home or property. Most provinces and territories have complementary programs that offer additional financial assistance based on the results of the ecoENERGY Retrofit evaluation. For information on how you can qualify, please consult the ecoACTION Web site.

—

An online pamphlet will soon be available.

—

Planning on some home improvements? What project ideas do you have that fits in the $1000-$10,000 range? Does the HRTC give you the incentive to renovate this year?

Many people have been wondering about the home renovation tax credit and just what exactly it entails.  Information is now available on the Canadian government website, including a pamplet with further details.

Below is a break down of the main points of interest:

What is the time frame during which the credit can be applied?

“…after January 27, 2009 and before February 1, 2010, pursuant to agreements entered into after January 27, 2009.”

For work completed and some necessarily obtained goods!  This credit is for new renovations and ongoing improvements on the residential structure itself, as well as the land it sits on.

What exactly can I get back?

It’s a 15%  credit which can be claimed on an amount which is more than $1000 and under $10,000. The maximum credit that you can obtain is $1350.

What Dwellings are eligible?

* houses

* cottages

* condo units

(must be inhabited or used by the owner)

What Types of expenses can be considered?

* projects (ie: finishing your basement or re-doing the kitchen)

* “associated expenses” (permits, rentals, labour, etc.)

Who is eligible to claim it?

“Taxpayers can claim the HRTC when filing their 2009 tax return…. Family members will be able to share the credit.”

Written by: Guest

Home renovation can be a stressful undertaking. It is wise to deliberate carefully about renovations. All disputes over the renovation plan must be settled before the work begins or you are just postponing an inevitable (and probably heated) argument. Everyone in the family should have a voice in this undertaking, as it truly is a family affair.

The following list could have had three, eight or even 20 entries, but if you stick with the basics and exercise self-control, the following five keys can help guide you to, and through, a successful home renovation.

1. Good relationships mean good business – A home renovation will be a lot less stressful if you have a solid, trusting relationship with your contractor. Trust doesn’t arise between people instantly, but there are ways to speed the process, such as “third-party trust,” meaning referrals. If you don’t already know and respect a builder in your area, ask the people you trust about the contractors that they trust. Get referrals, and interview the prospects to get at least somewhat of a “feel” for them. Get referrals, check credentials, trust your instincts – and call references. Nothing builds trust in a contractor like good, positive reports from previous customers.

2. Accurate budgets are crucial – You need to understand how to budget for the job, and what is really involved, financially, in your home renovation. The better understanding you have of your budget, and the more accurate the estimates you include, the less likely your job will exceed your expectations. Although your contractor can supply some good information here, you should maintain authority over the budget yourself and not give anyone – not your spouse, your family as a whole or the contractor – the “keys to your wallet.” Do your homework, and follow the budget.

3. Home renovation is messy – Prior to the start of actual construction, remove all valuables and breakables from the affected areas. Unless the garage is part of the plan, you might consider storing items there. If the whole house is involved, think about renting a storage unit. While this will cause some short-term dislocation and require some sweat from the family’s brows (or more paid help), renovations are inevitably messy and accidents will happen. Take whatever steps are necessary to ensure the safety of your valuables, fine furniture, Persian rugs and other possessions.

4. Stick to the payment plan – One easy way to ruin your relationship with your contractor, and slow down or terminate your renovation project, is to deviate from your payment plan. If you are developing a timetable for the contractor’s work, you should also prepare, and adhere to, a timetable for the payments. You should be proactive in this matter, and never allow communication to deteriorate to the point where the contractor has to ask for money. Plan out every detail and every dollar, and follow the plan.

5. Extras: There’s always something – When developing your renovation budget, leave some room for the unanticipated extras that inevitably come up in the course of a home renovation. In addition, once you start renovating, you may think of other improvements or changes you wish to make. This means building some flexibility into the financing, as well as the project plan and the timetable. Strike a balance between firmness and flexibility so that you don’t go off on a tangent and lose control of the cost or the schedule.

Like most big undertakings, a home renovation can be somewhat scary. Don’t hesitate to speak with friends, relatives, coworkers or neighbors who have been through the same thing. Investigate all concerns - listen carefully, take notes and don’t leave any question unanswered before finalizing your plan and your budget. Don’t be in a hurry, don’t make assumptions and, above all, do not waver in your determination to see the project through to a successful conclusion.

by Robert Wright

How can we save money? It’s a common question asked on many projects.

My clients and I prefer to start with the total wish list of what we would like to be completed in the project before anything else. One reason is that we don’t want a possible future phase of work to disturb already completed work. Also, sometimes we are all surprised by what can be included in the budget. The usual result of the wish list exercise is that the project is over budget and this is all right. The next question to ask is, “Now what do we do?”

The next step is to determine the priorities for the various items of the project wish list. This can mean that less important items may be trimmed from the project.

Another possibility is to phase the anticipated project over time. What I have done with past clients is to set up a multi-year plan to renovate various parts of their home. For example: we first completed the bathroom, then the windows, and then some HVAC work.

Another step is to look at the material selections. Can we substitute less expensive materials from the wish list materials? These could include: PVC windows for wood aluminium clad windows; laminate counter tops for stone; and thermofoil cabinet doors for solid wood cabinet doors.

Maybe we can reuse existing items; though we have to be careful. Some items can look tired against the new i.e. used stainless steel sinks in the new cabinets. However, patching in old hardwood flooring, brick, or siding can reduce costs and dump fees. Remember, unless there is a major structural issue, the greatest cost items are in the things you touch and see, and not in the structure.

The selection of “cheap” materials is not usually a good idea. They are cheap for a reason – usually they are of poor quality. The low cost is forgotten long after the poor quality is evident! Quite often we can take some less expensive materials and create a more expensive look.

Another step is to look at the project from another angle. Can a revision of ideas and design help? Can the project requirements be met another way?

I had a client who believed that the only way to solve the kitchen space issues was to create a small addition. Unfortunately, this addition portion required a larger budget than the client was prepared for. With a little head scratch, we were able to create the large kitchen with eating area, a new walk-in pantry, and relocate the powder room within the existing structure and the budget.

As you can see, it can be a bit of a process to have the budget and project meet. It may take a bit more thought and research than first expected, however, it will be well worth the effort at the end of the project.

In the mid 1990’s, Rob joined and took over Citadel Renovations in Ottawa. Since that time, Rob has helped many homeowners improve their homes. Rob has been active in the Greater Ottawa Home Builders Association for many years and has been the Renovation Council Chair in the past. Recently, Rob has presented seminars at the local home shows on various renovations subjects. He is a featured contractor expert for the Home Renovation Guide’s “Ask the Expert” section. You can visit his company website CitadelRenovations.com for more information.

The Globe and Mail has been reporting on the new budget for Jan. 27th this week and as such, the proposed tax credit for home renovations. Should the break go through, it could spur the construction industry, keeping layoffs at bay, and would more likely keep spent Canadian dollars in the country.

Whether or not all types of renovations or if only retrofits and upgrades for energy efficiency would be eligible was not elaborated on.

Meanwhile, the CBC has reported that in Quebec, the Liberal party will include a home renovation tax credit, in their budget. Homeowners, who live in a single-family residence must hire a certified contractor. Projects would be a minimum of  $7,500 for 20% coverage of the job, to a maximum of $2,500, and it would be retroactive to Jan. 1st of this year.

Good news to homeowners and contractors who’ve seen their sales slump the last few months?

Home Renovations continue to be a popular area of investment for homeowners despite the current economic turmoil.  It makes sense at a time when buying new doesn’t and building on what you have, does.  Now that you’ve decided to renovate, there are still some things to consider before you go ahead.  Yes, you believe that you’re adding value to your property, however, with some wise planning before the hammer hits the nail you can actually be saving money too.

Create a Detailed Plan

It is of the utmost importance to properly create a plan, budget, and time frame for your home renovation job.  Such preparation is crucial to the enterprising DIYer and it’s also useful to those counting on professionals.  Get a very clear picture of all estimated costs that will account for everything from materials to labour.  Not only that, but it’s also important to figure in backup funds for situations which may arise as the project progresses.  A safe estimate is 15% on top of the initial projected budget.  If you have a realistic figure to work with that corresponds with very detailed drawings and plans, you are preparing a contingency for those unforeseen issues.  Just being aware of this possibility can keep you from future migraines and possible bankruptcy.

Cut Down on Material Costs – Not Quality

Materials of course account for a large portion of the expenses in any renovation project.  And although you may want to get the best price you can, you may not wish to sacrifice quality just to save a few bucks.  This is your home after all, (where you might be living for 20 years to pay off a mortgage). Companies that sell recycled material from demolition sites such as Happy Harry’s give you both a budget conscious and green option. “Found” wood is another trendy yet wonderful option – imagine creating a unique hardwood floor from an old wood cabin or antique ship.  If however, you are more inclined towards higher-end materials but want to pay a fraction of the cost, consider Habitat ReStores. These affiliate stores found across Canada and the United States offer surplus and used building materials for much less than retail. ReStores get their supplies from donated goods provided by: building supply stores, local contractors, demolition crews, and others wanting to support the cause. Not only are you saving money, or being green, you are also helping to raise funds that let Habitat for Humanity build 10 or more additional homes a year.

Implement Green into Your Renovation

It’s shocking to consider that your home may be a toxic place.  Do you know what went into the finishes of your hardwood flooring or kitchen cabinetry where you cook, or even the paint on the walls in every room in the house?  Making green choices for your home renovation is not only important for your health and the health of our planet, it can actually save you money.  Although the initial costs may be higher, using ethical and non-toxic materials that are longer lasting, as well as installing energy efficient components will save you money over time.  From more complicated aspects like redesigning your home, to being conscientious about product selection, consider these options suggested by Rob Wright, owner of Citadel Renovations.

* ICF foundations
* Composite floor, roof, and wall framing
* Low e film, argon gas, and triple pane glass in windows
* Compact fluorescent and LED lights
* Lots of natural light
* Reduced and/or no formaldehyde cabinetry
* Low or no VOC paints and finishes
* Composite material exterior finishes
* Recycled material roofing: metal, rubber, cement
* Wood or linoleum floors
* Heat pumps: ground, water, and air

The money you’ve saved on heating, lighting, and water once you’ve made your home more energy efficient will over time actually pay for those improvements.

Decide If It’s a Worthy Investment

It may seem like a no-brainer to first figure out if the investment you plan to make in upgrading your home is one of value, but it may come as a surprise that some are less financially beneficial than others. CMCH, the Canada Mortgage and Housing Corporation, Canada’s federal housing agency, is a great resource for homeowners who are considering a renovation project.  Their website offers a host of useful information, such as this break-down of renovation payback ranges:

Top four greatest payback potentials
* Bathroom renovation (75 – 100%)
* Kitchen renovation (75 – 100%)
* Interior painting (50 – 100%)
* Exterior painting (50 – 100%)

Versus:

Ten average payback potentials
* Roof shingle replacement (50 – 80%)
* Furnace/heating system (50 – 80%)
* Basement renovation (50 – 75%)
* Recreation room addition (50 – 75%)
* Installing a fireplace (50 – 75%)
* Flooring (50 – 75%)
* Constructing a garage (50 – 75%)
* Window/door replacement (50 – 75%)
* Building a deck (50 – 75%)
* Central air conditioning (25 – 75%)

Repairs or beautification are the most prevalent ideas that come to mind, however, safety improvements are another way to go that will your wallet happy.  Check with your insurance company if they offer lower premiums when you add or upgrade a home security system, fire prevention measure, or improve the existing wiring.

We’ve all heard the renovation horror stories that look like something out of that 80’s movie The Money Pit.  It’s not something we like to think about; the possibility of your hard earned $10,000 renovation budget ending up being but a drop in the bucket.  Like any other investment, you wouldn’t blindly drop ducats on any random man in a suit with a smile – you do your homework first.  Not only will you bring added value to your home with your new renovation, you will also save money with your carefully laid plans.

A recent study conducted in August of 2008 shows that homeowners in British Columbia are planning to upgrade their homes instead of selling and buying new as reported by the CNW Group newswire. It follows November’s Toronto Life cover story that despite the perilous connotations, reports a similar trend -  Torontonions alone spent 7.1 billion in 2007 (a sizable increase from ‘06) on home renovations.

Despite the world wide economic woes, home improvements are a sound investment as new additions or upgrades are proven to bring value to the home.  It makes sense when most of us don’t have a clue where to put our savings.  In a recent article from MoneySense about an investment group of teachers, the main interviewee spoke on how people tend to do the opposite when it comes to investments at a time like now.  Instead of being more conservative and buying less, it’s a good time to buy more because prices have dropped.  Can traditional market theories hold true with possibly looming black swans?

.

If perhaps you’ve decided that the 10K loss in your RSP this year might better be made up through putting this year’s money into some home renos, make sure you find a reputable contractor.  The website www.hiringacontractor.com has useful information.

If however, you might think that you can save even more with a DIY project, there may be some things to consider before you go ahead:

• Have an overall budget in mind and be realistic in assessing your finances

• Try and leave some flexibility as unexpected situations during the project may cause you to incur extra expenses

• Define a reasonable timeframe for completion

• Give yourself some time to do your research in order to find and hire and your Designer / Decorator, contractor, and all other the necessary workers

Although the focus is more on decor, there are some valid points to go over in the rest of this article where the above was taken from.