©Image from BigStockPhoto.com

In some cases, the Home Renovation Tax Credit (HRTC) has expanded the simple replacement of a wooden deck into the purchase of a hot tub, sunroom and gazebo. 

Canadian retailers are declaring the temporary Home Renovation Tax Credit (HRTC) an unqualified success, as homeowners invest significantly in their backyards.

The HRTC, introduced in the 2009 federal budget, offers homeowners a tax rebate of up to $1,350 on qualifying home improvement projects. The rebate has prompted many people to tackle more projects than originally planned, according to the Globe and Mail, which has been a boon for the backyard leisure market.

In some cases, the simple replacement of a wood deck has expanded into the purchase of a hot tub, sunroom and gazebo, thanks to the tax incentive. This has caused an increase in retail sales for hardware, building materials and home supplies.

Statistics Canada reported retail sales at building and outdoor home supply stores increased 1.0 per cent in May compared to April, while sales at home centres and hardware stores increased 1.1 per cent over the same period. An increase of 0.8 per cent was also reported at specialized building material and garden stores.