Home Builders Call for Rebate Programs to Be Extended

Wednesday, January 06, 2010 03:59 AM

Prince George, B.C. - The Canadian Home Builders Association ,Northern B.C. is calling for new rebate programs to keep the economy rolling.

The Association says the LiveSmartBC and Home Renovation Tax Credit program were two of the most successful housing rebate/tax credit programs they have witnessed. The programs increased energy efficient upgrades in older homes and generated significant employment during the recession.

Unfortunately, LiveSmartBC ran out of funding last summer. It was so successful, the program used up its $60 million allocation in 15 months, less than half the time anticipated. Similarly, the HRTC program helped boost national residential building permits from $2.1 billion in Jan. 2009 to $3.1 billion in Sept. 2009. The HRTC program ends Feb. 1, 2010.

The CHBA for Northern B.C. says the programs did more than create work, because they required receipts, it meant consumers had to use legitimate contractors rather than use the “underground network” to save costs.

The CHBA says there needs to be an extension of an effective rebate/tax credit program vto ease the impact of the introduction of the HST. As of July 1^st, the Harmonized sales tax will add 7% to the cost of a renovation. A study conducted for the CHBA indicates the HST will have a negative effect on contractors:

· “Shift contractor renovation activity into the underground economy, with a loss of existing income and sales tax revenues for federal and provincial governments.”

· “Reduce the volume of renovation activity by contractors due to higher cost. This will lower economic activity and employment in the province.”

The CHBA says an effective rebate program will offset the impact of the HST, discourage illegal renovations, promote professional energy retrofits, create more jobs, and generate additional income and sales tax revenue for government.

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Posted on Wednesday, January 06, 2010 03:59 AM in News by 250 News

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Comments

Posted by: newtechie on January 6 2010 7:47 AM

I've already hired people to finish my basement. (They're here now).

I was going to do it eventually, but the renovation tax credit (and the chance to beat the HST) provided my with the incentive to get it done now.

Posted by: Outwest on January 6 2010 8:03 AM

if Governments keeps on handing out Money, we will never climb out of the Deficit Hole

Posted by: Municca on January 6 2010 8:10 AM

Exactly Outwest.

Posted by: nechakogal on January 6 2010 9:33 AM

Wasn't the renovation tax credit one of those items that were shut down by the recent proroguing of the parliament? I guess it will have to wait until the government decides to get back to work.

Posted by: gus on January 6 2010 10:29 AM

I need a new rototiller.

Is there a tax incentive to dig up one's backyard and grow your own vegies?

Posted by: faxman on January 6 2010 10:42 AM

"Wasn't the renovation tax credit one of those items that were shut down by the recent proroguing of the parliament? I guess it will have to wait until the government decides to get back to work."

No. It was passed in the summer.

Posted by: newtechie on January 6 2010 11:24 AM

re: Outwest "if Governments keeps on handing out Money, we will never climb out of the Deficit Hole"
------------------------------------

Really? Wow... I better stop my basement reno's and tell the guys to go home so I can save Canada.

Posted by: gus on January 6 2010 12:40 PM

"The CHBA says an effective rebate program will offset the impact of the HST, discourage illegal renovations, promote professional energy retrofits, create more jobs, and generate additional income and sales tax revenue for government."

"professioanl" energy retrofits? You mean the one which will insulate the house from the outside, create a vapour barrier, and see wood mildew in the next 10 to 20 years? Ah yes, leaky condos. The problem started by "professionals". Professional architects, engineers, builders, and city building inspectors. A whole bunch of professionals, each one of which should have known better if they had paid attention in colleges and universities, but didn't.

generate aditional income and sales tax revenue ...... by giving money??? .... so how much has to be given in order to get the return? Is it what they like to call "revenue neutral"? Over what period of time?

Posted by: lmorge on January 6 2010 6:23 PM

FOrget rebates.HOme builders all over BC should band together to put pressure on the BC government and not impliment the HST. Because by then it won't matter.

Posted by: Palopu on January 6 2010 7:27 PM

Imorge is right. The HST sucks. Those who want to bring it in should have their asses kicked out of Government. There is no need for anymore taxes in British Columbia, there is a great need for fiscal responsibility, and Government accountability. We cannot get the Government to make any significant changes unless we kick them the hell out, and allow them to meditate on their shortcomings.

The time of rewarding Governments by re electing them for bad behaviour has to stop.

Just the $7 Billion surplus invested by ICBC should give everyone food for thought. If ICBC has this much squirreled away, how much is hidden in places like WCB, BC Ferries, BC Hydro, PowerEx, BCTC, WorkSafe BC, BCBC (Or whatever the hell its called these days) BC Transit, Airport Authoritys (Not Pr George they are losing money) The list goes on.

Anyone who thinks that the present collection of taxes in this Province, along with the Gambling Revenue, Gasoline Tax, Fines, Licences, Permits, Alcohol Sales, Stumpage, Mining, etc; etc; is not sufficient is a bloody fool.

This Government has money falling out of its ying yang. The problem is they are a bunch of incompetants, and have no control over what they do. They give themselves huge raises, huge pensions, hire more bloody employees than they could ever need.

Somehow we have to bring enough pressure to bear on them, to force them to stop.

The same applies to our local Mayor and Council. Its time to stop Spending, and become responsible.

Is that a lot to ask???

Posted by: astro on January 6 2010 7:38 PM

gus said, "Is there a tax incentive to dig up one's backyard and grow your own vegies?"
no, there are only incentives for the rich to go to the Olympics. Of course the rich will not have to pay the HST as it does not kick in until after the Owelympics.