John Deasy
Question:188. Deputy John Deasy asked the Minister for Finance if he will consider increasing the tax relief available under the home renovation incentive scheme in the forthcoming budget. [32994/14]
View answerWednesday, 17 September 2014
Questions (188)
Written answers
As the Deputy is aware, I introduced the Home Renovation Incentive (HRI) in Budget 2014. The incentive provides 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. In order to qualify for the tax credit, the works must be carried out by legitimate contractors and the homeowner must also be property tax compliant. A minimum of €4,405 excluding VAT must be spent on qualifying works. This threshold can be reached over a number of jobs. Relief is available on qualifying expenditure up to a maximum of €30,000, excluding VAT. The tax credit is payable over the two years following the year in which the work is paid for.
The aim of the incentive is to stimulate increased activity in the construction sector and boost employment. It is aimed at supporting fully tax compliant builders and moving activity out of the shadow economy into the legitimate economy as all expenditure and relief claims have to be registered electronically with the Revenue Commissioners.
It is a long-standing practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions. However, as with all tax reliefs, the HRI will be considered as part of the forthcoming Budget and Finance Bill and any announcements will be made on Budget Day.