Section 477B of the Taxes Consolidation Act 1997 provides for the Home Renovation incentive (HRI). As the Deputy will be aware, HRI provides a tax relief by way of an income tax credit on repair, renovation or improvement works on principal private residences or rental properties carried out by tax compliant contractors.
A key element of obtaining relief is that the contractor must be a qualifying contractor for the purposes of the Incentive and must complete the relevant documentation in electronic form. Where the contractor does not comply with these obligations, then no relief is due to an individual under the Incentive.
I am advised by Revenue that full details on the operation of the HRI scheme are available on their website at http://www.revenue.ie/en/tax/it/reliefs/hri/index.html
The Revenue guidance for homeowners includes material on ‘Choosing a HRI contractor’. The guidance emphasises that it is important for a homeowner to check the Revenue system online to see that the details of works have been entered before the work commences. It clearly states that if a contractor is not a qualifying contractor, he/she will not be able to enter the details on the Revenue online system and that the homeowner will not be able to claim the HRI tax credit.
If the Deputy knows of a contractor who is not co-operating with an individual to allow them make a claim under HRI, he should provide the relevant details to Revenue.