Are rooftop solar panels eligible for the federal Home Renovation Tax Credit?
The home renovation tax credit (HRTC) is available for eligible expenses incurred between January 27, 2007 and February 1, 2010. According to the Canada Revenue Agency’s (CRA) website at www.cra-arc.gc.ca/tx/ndvdls/sgmnts/hmwnr/hrtc/menu-eng.html, solar panels and solar panel trackers are eligible expenses under the HRTC. However, CRA’s website also advises that if you earn business income from part of an eligible dwelling, you can only claim the HRTC for expenses incurred for the personal-use areas of the dwelling. Revenue from FIT and microFIT contracts may be considered as business income by the CRA; you are therefore strongly advised to review the rules of the HRTC to determine the eligibility of your project based on your individual circumstances.
