Would a Tax Credit Keep Contractors, and Homeowners, Honest?
It’s not uncommon for things to go illegitimately awry when you take on home renovations. Just last week we talked about how contractors can sometimes be dishonest; and we all know that homeowners undertaking expensive renos are sometimes wont to take shortcuts from time to time. Especially if they can save a few bucks while doing it. So in this $66-billion industry, is it any wonder that parties on both sides of the fence can sometimes be the root of those home reno horror stories? Now, BILD is trying to convince the federal government to start up a tax credit program that will combat these issues, and give homeowners a break at the same time.
The tax credit that BILD is suggesting is similar to their current RenoMark program, which also helps homeowners have the most honest and qualified home renovation job done. RenoMark is a network of contractors that work under the RenoMark name, and therefore adhere to their 10-point code of conduct, and who have all been fully verified and qualified by BILD as legitimate and reputable contractors. The program reaches across the entire country to nine provinces, with 250 RenoMark contractors in the Toronto area alone.
While the proposed tax credit wouldn’t include a database of contractors, it would ensure that more jobs were being completed more honestly and openly. Everything would need to be put in writing in order for the homeowner to be eligible for the credit. This fact alone would stop under-the-table payment schedules, which would in turn also help prevent contractors from just walking off a job never to return, and before the job is done – something that’s one of the biggest problems for homeowners when taking on renos.
A representative from BILD recently stated about the tax,
“The national home builder’s association has been advocating for a permanent federal home renovation tax credit equal to 2.5 per cent of the total cost of the renovation. It will benefit homeowners in the existing stock of homes in the GTA, which are ripe for renovation, adn part of our jobs as the local home builders’ association is to advocate for consumers.”
What do you think? Will a federal tax credit help keeps things more honest in the home reno biz?