John Arnott

Home Renovation Tax Credits

The Federal Government revealed the Home Renovation Tax Credit in its budget on January 27, 2009. If you are thinking that maybe you might be able to manage a couple of small jobs, now may be the time. After all, if you keep the renovation budget to $ 10,000, you'll get $ 1350 back - a savings of 13.5%

What is covered?

The tax credit kicks in on expenditures over $1,000, and you won't get any tax relief for what you spend over $10,000. So your tax savings on a $20,000 job will still be $1,350 - or a saving of 6.75 per cent.

The variety of expenditures that qualify for the tax credit is wide. Among them:

• Renovating your kitchen, bathroom or basement.
• Painting your house.
• Installing new carpeting or flooring.
• Replacing your heating/air conditioning system.
• Upgrading the insulation in your home, resurfacing your driveway or replacing your lawn with new sod.

Just about any job that improves your home or cottage - or any combination of jobs that improves either or both - qualifies for the credit. Buying furniture, a big-screen TV, cleaning your carpets, buying tools or performing regular maintenance on your home won't get you the tax credit, however.

The Home Renovation Tax Credit can be coupled with other government programs that put money back into your pocket when you renovate your home. For instance, making your home more energy-efficient can qualify you for grants of up to $5,000 under the ecoENERGY Retrofit Program. You will still be able to claim the Home Renovation Tax Credit. The same applies for eligible expenditures that are claimed under the Medical Expense Tax Credit.

While doing the work yourself will give you the most bang for your buck, jobs that you pay a contractor to do also qualify. Expenses such as labour, building permits, equipment rentals, professional services and incidentals are also eligible. Municipalities regulate building permits, so you should check with your local officials before you begin your job. If your renovation involves structural changes to your home or electrical work, you will most likely need a permit.

One of the major goals of the program, which is expected to cost the government $3 billion, is to stimulate local economies. Most of the material you buy to fix up your home is likely made in Canada and sold at your local hardware store (although it's as likely to be a U.S.-owned big-box store as a Canadian-owned big-box outlet).

One tax credit per family Unlike the Home Buyers' Plan, where each spouse can withdraw up to $25,000 from their RRSP to put toward a down payment on a first house, the Home Renovation Tax Credit is limited to one credit per family.

While you can make claims for work done at more than one residence you own, the maximum any family can get back is $1,350. But a family can share the credit. You'll be able to claim the credit on your return for the 2009 tax year. All material has to be purchased and work has to be finished no later than Feb. 1, 2010.

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Preventing Ice Dams

The cold weather is upon us and brings with it some home problems that are specific to Northern cold climates. Ice dams can be seen in both old and new homes and if left unchecked can lead to severe structural damage.

What is an Ice Dam?

Generally deeper snow and colder temperatures increase the formation of ice dams. An ice dam is an accumulation of ice that builds up along the edge of a roof. The eavestrough may be overflowing with ice and there may be icicles hanging from the edge.

What causes an ice dam?

Snow build up effectively acts as an insulator on the roof. Heat from the attic warms the underside of the snow and melts the bottom layer. This water then runs under the snow cover and down the roof until it hits a cold surface like the overhang, where it refreezes.

As the cold spell continues the ice becomes thicker.

Why is this a problem?

The ice build up acts as a dam for the water running off beneath the snow. This can cause a back up and the water has to run somewhere. In severe cases that means under the roof shingles soaking the roof sheathing, insulation, wood framing and possibly your interior ceiling. Uncorrected the water can cause serious structural damage.

Prevention:

Ice dams can be prevented by eliminating heat build up in the attic. The following steps combine to help keep the temperature inside the attic nearly the same as the outside temperature:

1. Seal openings that allow heated inside air to rise into the attic. The attic hatch is of particular importance. This should be insulated and weather-stripped. All penetrations of wiring, plumbing pipes and wood framing into the attic should be sealed with caulk or expandable foam insulation. The spaces around chimneys should be sealed with sheet metal and high temperature caulk.

1. Make sure that bathroom exhaust fans do not discharge directly to the attic. The exhaust duct should be insulated and the area between the frame of the fan and the ceiling sealed.

1. Improve insulation to slow heat transfer into the attic. Current recommendations are for approximately 12 inches of Fiberglass bat insulation (R38+) or equivalent blown in type.

1. Improve ventilation to cool the attic space and remove unwanted moisture. (Note: Make sure that you do not block soffit vents when adding insulation.) Passive type ventilation such as soffit vents, ridge vents and/or high level exhaust vents. Powered exhaust vents are not generally recommended as they can cause negative pressure in the attic drawing more warm air from the heated space.

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Essential steps to improve indoor air quality.

Clean air is essential to good health and this is especially true when it comes to indoor air.

It is estimated that North Americans spend close to 90% of our time indoors. With the advent of energy conservation and the trend towards tighter, draught free homes, the concentration of indoor air pollution can far exceed outdoor levels.

Some simple steps can control the quality of your indoor air.

Mould

Since moisture promotes mould growth, dampness is one of the most common causes of poor indoor air in homes. Minimize moisture by:

•· Measure indoor humidity levels (use a hygrometer available from hardware stores) and maintain levels of around 50% in Summer and 30% in Winter. If necessary use a dehumidifier.

•· Make sure that clothes dryers are properly connected and vented outside.

•· Repair basement, roof and pipe leaks as soon as you notice them. Clean up after any water damage and dry the area within 48 hours.

•· Discard clutter and excess stored materials. Mould can grow on fabrics, paper, wood, carpets etc whenever moisture is present.

•· Always use kitchen and bathroom fans to remove moist air at the source. Run bathroom fans for at least 20 minutes after you have finished showering. Check that fans vent outside and not into the attic.

•· Open windows when weather permits to provide circulation. Remember though that damp outside air will not dry the air inside.

•· Don't overwater plants and watch for mold growth in containers.

•· Vacuum regularly. Central vacuum systems that vent to the outside or vacuums with HEPA filters are preferable.

Chemicals

The most effective way to remove chemical contaminants is to eliminate them at the source. Those that you bring into the house are easier to remove than those that originate from the materials used to build the house.

•· Do not smoke or allow visitors to smoke indoors.

•· Do not burn candles, liquid fuel or incense. Soot, carbon monoxide, volatile organic compounds and other hydrocarbons are byproducts of combustion.

•· Use non chemical pest control methods such as baits, traps or fly swatters instead of pesticides.

•· Do not allow any fungicide or biocide to be applied in the ducting system of your house.

•· Avoid plug in or aerosol deodorizers or air fresheners. Instead deal with the causes of odours.

•· Use unscented biodegradable detergents.

•· Avoid the use of bleach and other strong household detergents and cleansers. Replace with greener alternatives.

•· Avoid perfumed fabric softeners which leave residual chemical odours.

Building Materials

When possible select low emission materials, paints, sealants and carpets.

•· Minimize the use of furniture made of particle board, MDF or plywood, which are potential sources of formaldehyde.

•· Run ventilation fans (usually the bathroom fan) for a couple of hours every day to dilute indoor air with fresh air from outside.

Your heat recovery ventilator (HRV) can help make your house a clean, healthy living environment. It improves air quality by removing stale indoor air and continuously replacing it with preheated outdoor air.

An HRV can give many years of trouble free service. All it takes is a little bit of time to keep it running smoothly. The following maintenance schedule is easy to do and takes only a few minutes.

Before performing any maintenance always turn off the HRV and unplug it.

•1. Clean or Replace Air Filters: Dirty or clogged filters reduce air flow and ventilation efficiency and should be cleaned about every two months. Open up the front panel and remove the filters. Clean with a vacuum cleaner then wash with mild soap and water before replacing. Older units may have replaceable filters.

•2. Check Outdoor Intake and Exhaust Hoods: Check that the outside vents of your HRV are not blocked. Remove leaves, waste paper etc. During winter, clear any snow or frost buildup blocking outside vents.

•3. Inspect the Condensate drain: The condensate drain is usually a pipe or plastic tube coming out of the bottom of the HRV. Slowly pour about two liters of warm, clean water in the drain inside the HRV and watch to see that it is flowing freely. If there is a backup, clean the drain.

•4. Clean the Heat Exchange Core : Check your HRV owner's manual for removing and cleaning the heat exchange core. Vacuum and clean with mild soap and water.

•5. Clean Grilles and inspect the ductwork: Once a year, remove and inspect the grilles covering the ends of the ducts leading to and from the HRV. Vacuum if necessary.

•6. Service the Fans: Make sure the unit is unplugged. Gently brush and remove dirt that has accumulated on the fan blades. Check your manual to see if lubrication is recommended. Older models may require a few drops of lubricating oil whereas newer models are designed to run continuously without lubrication.

•7. Arrange for Annual Servicing: Your HRV should be serviced annually by a qualified technician accredited by the Heating, Refrigeration and Air Conditioning Institute of Canada (HRAI)

Turn your HRV off in April or May by either turning the dehumidistat control to HIGH setting or OFF

Turn your HRV back on in September or October and reset dehumidistat to 40% to 80%

Carbon Monoxide (CO) is a colourless and odourless gas which is a common by-product of the combustion of fossil fuels. The burning of natural gas, propane, oil, wood, kerosene and coal produce CO. Exhaust from your car or gas mower also produce this potentially dangerous gas.

Because you can't see, taste or smell it carbon dioxide cannot easily be detected. It can cause serious health problems ranging from flu like symptoms with mild exposure to unconsciousness and death with extreme exposure. Even low levels of CO can be harmful because it accumulates in the blood and depletes the ability of blood to carry oxygen.

The risk of CO poisoning can be minimized by installing at least one CO detector in your home. Select a unit that is stamped with the Canadian Standard Association (CSA) label. Detectors are available either battery operated or plug in units that plug into an electrical outlet. Care must be taken to replace batteries on a regular basis and plug in devices should not be connected to an outlet controlled by a wall switch. Detectors should be replaced at least every five years.

Most manufacturers specify where you should locate their CO detector. In general, the best place is close to the sleeping areas where you will hear it while sleeping. Follow the manufacturers instructions and install a detector on each floor containing a sleeping area. Test the units regularly to confirm they are operational.

Reducing the risk of CO entering the home is the best defense. To reduce risk:

• Have a qualified technician service fuel burning appliances yearly
• Have a qualified technician inspect chimneys, dampers and vents for cracks, blockages, corrosion or holes.
• Ensure adequate air supply to furnace and hot water appliance rooms, particularly when powerful kitchen fans are used. A qualified technician can check that fumes are not pulled back down the chimney.
• Do not start a vehicle or lawnmower in a closed garage. Open the door first and pull the car out immediately. Shut the door to prevent exhaust fumes from being drawn into the house.
• Avoid the use of kerosene space heaters.
• Maintain the seals around entry doors from the garage to the house and install an automatic closer on the door.
• Seal all wall penetrations between an attached garage and the house.
• Never operate a barbeque indoors or in an attached garage.

If your detector sounds an alarm, evacuate the house immediately including pets. Notify your neighbours if you live in a duplex, row house or apartment and call your gas utility, heating contractor or fire department.

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