Liberal Leader Michael Ignatieff vowed that the proposed home renovation tax credit would be preserved under a Liberal government.Liberal Leader Michael Ignatieff vowed that the proposed home renovation tax credit would be preserved under a Liberal government. (Darryl Dyck/Canadian Press)

Liberal Leader Michael Ignatieff vowed that the proposed home renovation tax credit would be preserved under a Liberal government, accusing Prime Minister Stephen Harper of spreading false information.

"Mr. Harper is trying to scare Canadians with the thought that we would jeopardize the home renovation tax credit," Ignatieff said on Friday. "That’s completely false, and he knows it."

“We supported the home renovation tax credit before. Our problem is we just don’t support the government any more. But home renovation tax credit is a good measure, and it would continue under a Liberal government."

Ignatieff said on Friday he wanted to clear the air about the Liberal position on the tax credit because the misleading suggestions by the Harper government symbolize "why we're having such difficulty working with the government, why it's become impossible.

"The constant exercise of jamming, the constant exercise of game-playing and constant exercise of my way or the highway — which is no way to run a minority Parliament."

The Tories have suggested that the popular program could be placed in jeopardy by a fall election. Ignatieff has said the Liberals will try to trigger the defeat of Harper's minority Conservative government at the earliest possible date.

The 15 per cent credit could see eligible applicants receive as much as a $1,300 refund on their taxes if they invest up to $10,000 in home improvements between Jan. 27, 2009, and Feb. 1, 2010.

The tax credit hasn't actually been approved by Parliament even though the prime minister has urged Canadians to take advantage of it.

Unlike other elements of the government's stimulus package included in the January budget that were passed in a budget implementation bill in early March, the Tories held back the renovation tax credit and its projected cost of $3 billion over two years for a second budget bill slated for the fall session.

The Canada Revenue Agency has administered the tax credit under the assumption that it would be made into law in the fall session but has not commented on what effect, if any, a fall election would have on the program.

Earlier this week, Conservative sources told CBC News that they could pre-empt a Liberal attempt to bring down the government as soon as Parliament resumes by tabling a motion of confidence on the tax credit.

That could put the Liberals in a position of having to vote against the program in order to try and topple the government.