Dáil Éireann Debate, Wednesday - 26 February 2014
58. Deputy Michael McGrath asked the Minister for Finance the number of persons who have been approved for the home renovation incentive since its inception; and if he will make a statement on the matter. [9894/14]
View answerAs the Deputy will be aware, I announced the Home Renovation Incentive in the recent Budget. This scheme came into operation on 25 October 2013 and will run until 31 December 2015. It provides for tax relief for home owners 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 (inclusive of VAT). 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. The scheme will be administered through Revenue s online systems. Contractors will be required to inform Revenue in advance of details of works to be carried out and will also be required to notify Revenue in relation to any payments received in respect of the works. Home owners will be able to view the information provided to Revenue by the contractor through the Revenue electronic systems and will also claim the relief through those systems. It is anticipated that this system will 'go live' in early April 2014. Contractors will need to enter the details of works carried out within 28 of the electronic system becoming available. Until the system is live and details of works carried out are entered, there are no figures available on the incentive.
Full details of the scheme are available on the Revenue website at http://www.revenue.ie/en/tax/it/reliefs/hri/index.html along with a newly produced Guide for Homeowners. Copies of the Guide are being distributed to all local Revenue Offices and Citizens Advice centres.
