With Friday being the last day to apply for the provincial government’s residential construction rebate, contractors and builders across the province say they are seeing a big boost in business over the summer months.

The $30-million rebate program, announced in June by Finance Minister Tom Osborne, allows homeowners to save money on construction and renovation projects, while also helping to stimulate the economy and construction industry. The program allows homeowners to apply for either a 25 per cent rebate on home renovation projects, or a rebate of up to $10,000 on a new home valued up to $350,000 before taxes.

A press release from the provincial government Friday says an estimated 8,500 homeowners have applied for the rebate as of Thursday. Curtis Mercer, CEO of the provincial branch of the Canadian Home Builders’ Association, estimates that when all is said and done there will be around 10,000 applications. He said the sheer volume means there will be some delays in responding but his group and the provincial government are working hard to process all applications.

“The uptake in the program from both the contractor side and the homeowner side has been tremendous. The program is doing what it was designed to do,” he said.

“We’ve heard from a number of contractors right across the province and in Labrador that they haven’t seen it like this since before the boom in 2012 and 2013. A lot of contractors have had to hire additional staff, either office staff or contracting staff, to keep up with the work.… It’s a big benefit. We needed it in our industry.”

According to Statistics Canada, the dollar value of building permits issued in the province rose 71 per cent from numbers in May — much higher than the six per cent average across the country.

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