Scenario #1
You Owe Taxes to the Government | Scenario #2
The Government Owes You a Refund |
| John spends $1,000 on PINK FIBERGLAS® batt insulation and pays $2,500 to hire an installation contractor to insulate his 1,200 square foot attic. The total cost for the attic project is $3,500. | Sarah is a handy do-it-yourself renovator who spends $2,000 on PINK FIBERGLAS® batt insulation to insulate her 2,500 square foot attic. She has decided not to use a contractor and will instead install the insulation herself. |
| John claims his attic renovation expenses on his 2009 tax return. After taking into account the $1,000 minimum threshold for the HRTC, a 15 percent tax credit is available on the remaining $2,500, resulting in a total tax credit of $375. | Sarah claims her attic renovation expenses on her 2009 tax return. After taking into account the $1,000 minimum threshold for the HRTC, a 15 percent tax credit is available on the remaining $1,000, resulting in a total tax credit of $150. |
| After his 2009 income tax assessment, John finds he owes $800 in taxes to the government. The HRTC will provide a relief of $375, reducing his total amount owing in taxes to only $475. | After her 2009 income tax assessment, Sarah is entitled to a refund of $500. She has paid $2,500 in taxes in 2009. Since the tax credit does not cause the total amount of her refund to exceed the total income tax amount she paid in 2009, she will receive a total refund of $650 ($150 tax credit + $500 refund). |