Jim Bishop, owner of Epic Roofing, said most companies these days are offering 10 to 15 per cent off on top of a federal government rebate program. (CBC)

Contractors in Calgary are offering discounts to encourage renovations because a federal government rebate doesn't offer enough incentive, according to one roofer.

Jim Bishop, owner of Epic Roofing, said most companies these days are offering 10 to 15 per cent off on top of the rebate program in order to sweeten the deal in an industry that has seen a drastic drop in demand.

"The prices are really competitive right now because of the recession," said Bishop. "People have an opportunity right now over and above the rebate to have very good competitive pricing with quality contractors because a lot of the bigger companies are having to be very competitive."

Bishop's company is among those offering extra incentives.

"Through the winter, for example, we had a 10 per cent winter rebate," he said. "As we get into this time of year, we're having other incentives, like a $250 Home Depot gift certificate. Things like that."

The home renovation tax credit, which was part of the 2009 federal budget, is a non-refundable tax credit for 15 per cent of the value of qualifying renovation work that cost more than $1,000 and less than $10,000, with a maximum tax credit of $1,350.

Eligible renovations include kitchen, bathroom and basement improvements, painting a house, replacing heating or air conditioning systems and upgrading home insulation, among other projects.

The work must be done between Jan. 27, 2009, and Feb. 1, 2010.

Consumers taking advantage

Big-box stores like Home Depot and Rona say they've seen an increased number of customers inquiring about the program and purchasing supplies based on what will help them get some money back in the end.

"I think it's giving people another tool to be able to push forward with these renovations," said Dan Davies, commercial manager at Rona on Macleod Trail and Southland Drive SE. "We see a lot of people who normally wouldn't have done that renovation until they see the advantage of either a big box rebate or the federal rebate."

RONA and a few other hardware stores have added an extra discount on top of the government rebate in order to entice more people to make changes to their homes, he explained.

Calgarians shopping for building materials told CBC News the rebate and its time limit are strong pushes to getting those household renovations done that would otherwise be put off for another year.

"If something comes up that I can use it, I'm partially there on one of my other projects, so maybe I can bulk them together, I hope," said handyman Don Stebner.