In an effort to stimulate Canada’s lagging economy, the federal government has earmarked $7.8 billion in tax relief and funding in the housing sector. Renovations and upgrades in everything from social housing to private residences can mean important opportunities for contractors, especially if they know their stuff when it comes to where and how monies will be allocated.

In social housing, the federal government is making a one-time $1 billion investment over two years for renovations and energy retrofits on up to 200,000 social housing units on a 50-50 costshared basis with the provinces. Seniors’ housing will see $400,000 over two years for new builds, housing for persons with disabilities will receive $75 million over two years, and $400 million will go to remediation of existing social housing on First Nations reserves. Supported social housing in the north will also receive $200 million over two years.

When it comes to single family housing renovations, it never hurts to take a good look at what exactly the government is offering through tax credit and rebate programs, so it’s possible to explain clearly to a homeowner what’s in it for both of you. As an example, in many instances homeowner grants can increase dramatically with very small adjustments, such as increasing the insulation value on a job by R-10 or by 20 percent surface coverage. Knowing this and offering up the details could mean more cash in your pocket and long-term benefits for the homeowner.

Homeowners are looking at some important kickbacks, be they first timers—looking at an increase in the Home Buyers’ Plan RRSP withdrawl limit from $5,000 to $25,000, and up to $750 in tax relief—or those looking to upgrade an existing home.

The temporary Home Renovation Tax Credit provides up to $1350 in tax relief to homeowners doing renovation work that increases the long-value of the home. Any family can claim 15 percent of material and labour expenses over $1000 and up to $10,000, as long as the work is complete by Feb. 1, 2010. While major projects like basement finishing, kitchen renovations, and additions qualify, permits, professional services, equipment rentals, and incidentals aren’t covered. The renovations must be on a property that is used for personal use like primary residences and cottages—rental suites aren’t eligible.

The ecoENERGY Retrofit program is receiving $300 million for projects that upgrade the energy efficiency of a home. Homeowners can receive up to $5,000 to offset the cost of energy-efficient upgrades like insulating and upgrading of mechanical systems.

On the provincial level, energy saving programs generally address mechanical systems upgrades, technology changes, and, most important to wall and ceiling contractors, insulation upgrades. Ontario’s Home Energy Savings Rebates are presented in conjunction with federal funds, and include upgrades in heating systems, ventilation, cooling, domestic hot water, insulation, air sealing, doors and glazing, and water conservation. Most of these categories refer to appliance and systems replacement, while insulation breaks down into attic, exterior wall, exposed floor, basement, and crawl space, and assigns a numeric value based on the starting and finishing R-value of the upgrade.

Attic insulation credits based on the incremental value of the upgrade. Insulating an attic to a minimum R-40 would result in an $800 credit if the starting value were R-12, $400 with a base value of R-12 to R-25, and no credit is available if the structure is already insulated at R-25 to R-35. A similar system applies to insulating attics to a total R-50, flat root and / or cathedral ceilings to a total R-28, and uninsulated flat roof and / or cathedral by a minimum R-10.

Exterior wall insulation projects are judged on a percentage of wall surface insulated basis, with a 20 percent minimum. The grants then increase based on R-value—insulating 20 percent of the wall by R-9 or more qualifies the homeowner for a higher credit than an R-3.8 to R-9 upgrade.

Basement insulation works much the same way, requiring at least 20 percent of the wall area to be insulated in order to qualify. The grant increases based on the increase of the R-value (R-10 to R-23 or R-23+). An additional $200 is available if all of the basement header area is sealed and subsequently, the insulation value is increased by at least R-20.

Exposed floor insulation is a flat rate $300 credit on a minimum 150 sq, ft. area as long as the upgrade increases the insulation value by at least R-20. Insulating 100 percent of a crawl space’s total wall surface can result in an $800 or $1,600 credit, depending on the insulation value increase, and insulating 100 percent of the floor above the crawl space to increase insulation value by R-24 can result in an additional $400.

In British Columbia it is much the same. LiveSmart BC rebates offer homeowners rebates in space heating, water heating, windows and doors, air tightness and draft proofing, distributed power generation, and insulation categories. Additional credits are available for increasing a home’s overall EnerGuide Rating by 20 ($400) or 40 ($700) points.

In the insulation categories, attic insulation must cover 100 percent of the area and the amount is based on the increase in insulation value in both flat roof and cathedral applications. In some cases an R-10 increase can result in an extra $250. Increases in exterior wall insulation range from 60 to 100 percent coverage, adding a minimum of R-3.8 or R-9 to achieve a minimum R-12.

Basement insulation requires consideration of basement moisture levels as part of the mandatory energy audit. The increase must cover full indoor heights, and anywhere from 60 to 100 percent of the surface area. The R-value increase can be a minimum R-10 or R-23, which will vary the credit amount.

Under “Other Insulation” fall basement headers (increase by R-20 for $150), crawl space wall (increase by R-23 for $1,120 or R-10 for $500), floor above crawl space (increase by R-24 for $520), and exposed floor (increase by R-20 for $300, 150 sq. ft. minimum). All energy retrofits under B.C.’s provincial rebate program are PST-free, and funds are in many cases issued in conjunction with the federal government.

In all of this, the contractor’s responsibility beyond the obvious is to provide agreements, invoices, and receipts that clearly identify the type and amount of materials, service, and labour as well as a description of materials, when they were purchased and delivered, and when the work was done. The work should be described in some details, providing the address where the work was done, the amount of the invoice, and proof of payment.

For more information visit:

www.budget.gc.ca/2009/plan/bpc3c-eng.asp

www.homeperformance.com/

Top Picks in Home Insulation

Roxul is made from stone wool, a naturally occurring by product of volcanic activity. It’s non-directional fibre orientation gives it high insulating properties, helps with the absorption of acoustic waves, allows it to withstand temperatures up to 1177C, and makes it water repellant, but vapour permeable.

Roxul offers ComfortBatt thermal home insulation in 3-1/2 inch R-14 and R-15 for use in 2x4 exterior wall applications, and 5-1/2 inch R-22 and R-23 batts for attics and 2x6 framed exterior walls. The company’s Safe’n’Sound soundproofing product is designed for interior wood framed or steel stud walls (16” or 24” o.c.), and ceiling and floor applications. Used in conjunction with 2x4 wood framed or steel studs and 5/8” Type X drywall it achieves a onehour fire rating, and in interior ceilings and floors with 2 x 10 inch joists and 5/8” Type X drywall it provides a 30-minute fire rating.

Owens Corning’s trademarked PINK Fiberglas® line comes in batt and loosefill insulation – the latter under the brand name of PROPINK® Blown Insulation. PINK Fiberglas® batt insulation is made for 2x4 walls, 2x6 exterior walls, and attics; and QuietZone® acoustical batts are available in a variety of widths for both wood and steel stud framing applications, and are designed to reduce sound travel through interior walls, floors, and ceilings. PINK Fiberglas® and QuietZone® insulation are certified to contain at least 60% recycled content – the highest certified level in the industry.

EcoBatt™ from Knauf is the company’s newest and most sustainable product, made from sand, 30 percent post-consumer recycled glass, and Ecose™ Technology: a binder based on rapidly-renewable bio-based materials rather than petroleum-based chemicals. The company says Ecose™ Technology reduces binder-embodied energy by up to 70 per cent and is free from phenol, formaldehyde, acrylics, and artificial colours.

Thermafiber SAFBs provide fire protection in rated wall and ceiling assemblies while adding STC value, thermal performance of RSI- 3.7, and exceptional sound and noise absorption. SAFB™ (Sound Attenuation Fire Blankets) are mineral wool batts designed to stop sound, save energy, and provide sound protection. They are non-combustible, moisture-resistant, non-corrosive, mildew-proof, and vermin-proof. All Thermafiber products contain at least 70% recycled content, and are available with up to 90% recycled content.

Safetouch from Dow is a fibreglass-free thermo-acoustic quilt manufactured from polyester fibres, meaning no skin irritation, no formaldehyde binders, and no mess. Fibres are carefully selected and their orientation is controlled, resulting in a durable and flexible product with high sound control. The company recently announced its development of a proprietary foaming agent that eliminates ozone-depleting compounds and cuts GHGs in half. Conversion to the new foaming agent in the production of its trademark Styrofoam™ brand products including its Rigid Foam board products for basements, walls, and other applications is currently under way.

MemBrain™, offered by CertainTeed, is a vapour retarder that reacts and changes physical structure with ambient humidity conditions. It breathes and allows excess moisture to escape from wall cavities, and is the only product approved by the Canadian Construction Materials Centre (CCMC) to serve as both a vapour barrier and an air barrier system. MemBrain is a polyamide film that changes permeability from less than 1 perm at low humidity (such as during winter) to greater than 20 perms at high relative humidity.

It is used in place of traditional polyethylene vapor retarders with unfaced fiber glass insulation to provide an insulation system that’s ideal for areas with seasonal changes in temperature and humidity. CWCJ