Vol. 555 No. 2
186 Mr. Fleming asked the Minister for Finance the key dates and requirements under the 1999 urban renewal scheme indicating the qualifying dates for expenditure under the scheme; the relevant percentages which have to be incurred by the relevant dates; and the dates for the conclusion of this scheme. [17967/02]
The areas selected for tax relief under the 1999 urban renewal scheme were announced by the Department of the Environment and Local Government in February 1999 and the residential elements of the scheme were introduced with effect from 1 March 1999. Due to a delay in securing European Commission approval, the introduction of the business elements of the scheme was delayed until 1 July 1999. The scheme was due to terminate on 31 December 2002 but provision was made in section 23 of the 2002 Finance Act for a two year extension to the deadline for the scheme until 31 December 2004. In order to qualify for the extension the relevant local authority must certify on or before 30 April 2003 that 15% of total project costs were incurred by 31 December 2002. The 15% of expenditure can include, not only construction costs, but all other development costs involved, including site acquisition costs and associated fees.
In addition, section 25 of the 2002 Finance Act amended both the Urban Renewal Act and the Town Renewal Act so as to enable the Minister for the Environment and Local Government to recommend to the Minister for Finance the designation of additional areas or sites for rented residential relief in certain cases were such areas or sites were originally recommended for owner occupier relief only. This amendment applies to expenditure incurred on or after 5 December 2001. In cases where expenditure was incurred prior to 5 December 2001 this extended relief is available where a contract for the purchase of a residential unit was evidenced in writing between 5 December 2001 and 1 September 2002.
