The new home renovation tax credit may help to stem the rising tide of unscrupulous companies that work on a cash-only basis, a Calgary contractor says.

The temporary tax break, announced in the federal budget on Tuesday, allows homeowners a 15 per cent tax credit on renovation spending between $1,000 and $10,000 during the next 12 months, to a maximum credit of $1,350.

Randy Acheson, who manages A-A Renovation Doctor Ltd., said homeowners will need receipts to claim the credit for renovation work and materials.

He hopes that will dissuade homeowners from using contractors who operate on a cash-only basis without issuing receipts.

Although his phone has been ringing off the hook with calls from people asking about the credit, at least one of Acheson's customers is skeptical the tax break will make much difference.

"For anyone doing a bathroom or a kitchen, what's $1,300," said Roberta Hearn, who just spent $100,000 on her home renovations.

According to the Canadian Home Builders Association in Calgary, three of every four Alberta homeowners have plans to do renovations. It hopes this tax credit will spur them on.