Dáil Éireann Debate, Tuesday - 21 March 2017
232. Deputy Brendan Griffin asked the Minister for Finance if the tax benefit of the home renovation incentive scheme can be carried forward for more than two years; and if he will make a statement on the matter. [13901/17]
View answerThe Home Renovation Incentive, introduced on 25th October 2013, provides income tax relief in respect of certain repairs, renovations and improvements carried out on a person's main residence by a tax compliant contractor qualifying under the Incentive. The scheme was subsequently extended to include repairs, renovations and improvements carried out on rental properties in Finance Act 2014, and improvements carried out by tenants of local authority homes in Finance Act 2016.
To qualify for relief, all qualifying work has to be carried out before 31 December 2018. However, where planning permission is required and is in place by 31 December 2018, works carried out and paid for up to 31 March 2019 will qualify.
The relief is given, as follows:
- in the first tax year after the tax year in which the payment is made to the qualifying contractor, by the lower of-
- 50 per cent of the relief due, and
- the amount which reduces the income tax of that tax year to nil,
and
- in the second tax year after the tax year in which the payment is made to the qualifying contractor, by the lower of-
- that part of the relief due that was not used in the first tax year, and
- the amount which reduces the income tax of that tax year to nil.
If relief due cannot be used in the first two tax years after the tax year in which the payment is made due to the insufficiency of income tax charged on the individual in those two tax years, this unused relief, called "excess relief", can be used to reduce the income tax liability in subsequent tax years until the relief is fully utilised. However, the amount of the excess relief used in any tax year cannot be greater than the amount which reduces the income tax charged on the individual in that tax year to nil.
