More than 80% of Canadian homeowners admit they know little to nothing about the new Home Renovation Tax Credit that could result in tax savings up to $1,350, according to a recent poll by by Angus Reid Strategies.

The poll also showed 98% of homeowners are unaware of the Feb. 1, 2010 deadline for claiming their renovations.

Announced in the 2009 Federal Budget, the Home Renovation Tax Credit (HRTC) is a non-refundable tax credit for work performed on or goods acquired for the renovation of owned, personal dwellings. The renovation must be of an “enduring nature” and “integral to the dwelling.”

Eligibility for the HRTC is family based. To qualify, a family must spend at least $1,000 on home renovations, up to a maximum of $10,000. A $10,000 claim results in a maximum tax credit of $1,350.

“For homeowners thinking about renovating, the Home Renovation Tax Credit is a great opportunity to get the most tax benefit from your project,” says Cleo Hamel, senior tax analyst, H&R Block Canada. “There are all types of projects that qualify but Canadians seem to be confused about what they can actually claim. If you wait until you file your tax return to ask questions, it will be too late.”

The survey showed:

• only 20% of Canadian homeowners understood that condo owners can apply their share of the cost of a renovation of the common areas in their building;

• 56% of respondents didn’t realize replacing the windows in the family cottage would be eligible.

• more than half of Atlantic Canada homeowners scored less than 50% when quizzed about what types of projects were covered. Ninety-five per cent of Atlantic Canadians said they knew little or nothing about the HRTC.

“The HRTC was designed to help Canadian homeowners increase the value of their homes through renovations,” explains Hamel. “Your principal residence is allowed to increase in value tax free so it really makes sense for homeowners to take advantage of the credit. You reduce your tax payable while enjoying the improvements to your home.”

For Canadians who do plan to claim the HRTC, all renovation expenses must be incurred after Jan. 27 2009 and before Feb. 1, 2010.

The poll was conducted online by Angus Reid Strategies, from June 5 to June 11, and surveyed 1,398 randomly selected Canadian homeowners. The margin of error for the total sample is +/-2.6%, 19 times out of 20.

IE