Dáil Éireann Debate, Tuesday - 12 November 2013
89. Deputy Brendan Griffin asked the Minister for Finance if he will consider extending the income tax credit for the home renovation scheme announced in budget 2014 to persons in receipt of pensions; and if he will make a statement on the matter. [48016/13]
View answerAs the Deputy is aware, I announced the Home Renovation Incentive in the recent Budget. This scheme will run from 25 October 2013 to 31 December 2015 and provides for tax relief for homeowners by way of a tax credit at 13.5% of qualifying expenditure incurred on repair, renovation or improvement work carried out on a principal private residence. Qualifying expenditure is expenditure subject to the 13.5% VAT rate. The work must cost a minimum of €5,000 (exclusive of VAT) which would attract a credit of €675. Where the cost of the work exceeds €30,000 (exclusive of VAT) a maximum credit of €4,050 will apply. The credit is payable over the two years following the year in which the work is carried out. Works carried out between 25 October 2013 and 31 December 2013 will be considered to have taken place in 2014 for the purposes of awarding the tax credit.
As the relief is being made available by way of tax credit, only individuals who have a tax liability will be in a position to avail of the incentive. However, any pensioner who has an occupational pension and pays tax on that pension will be able to qualify. The credit is payable over two years in order that individuals who may pay small amounts of tax can avail of it. In addition, any unused credit may be carried forward to future years.
