The previous tax relief in respect of rent paid was abolished in Budget 2011 and it is no longer available to those that commenced renting for the first time from 8 December 2010. This followed a recommendation in the 2009 report by the Commission on Taxation that rent relief should be discontinued. The view of the independent Commission was that, in the same manner in which mortgage interest relief increases the cost of housing, rent relief increases the cost of private rented accommodation. Accordingly, the result of reintroducing this relief would be a transfer of Exchequer funding directly to landlords, which would not have the intended effect of reducing the cost pressure on tenants.
At the time of its abolition, the rental tax relief cost the Exchequer up to €97m per annum, and it is likely that this figure would be even higher today were a similar scheme to be put in place. The refundable element mentioned by the Deputy would potentially add further to the cost.
Finally, as the Deputy will appreciate, I cannot comment more specifically on measures that may or may not be contained in the forthcoming Budget.