Dáil Éireann Debate, Tuesday - 15 February 2022
276. Deputy Alan Dillon asked the Minister for Finance if he will conduct a review of the living cities initiative to identify the way that the scheme can be extended further through interrelated plans and including other locations which would offer incentives for property owners to renovate and regenerate vacant and derelict sites; and if he will make a statement on the matter. [7461/22]
View answerThe Living City Initiative (LCI) (provided for in Finance Act 2013 and commenced on 5 May 2015) is a tax incentive aimed at the regeneration of the historic inner cities of Dublin, Cork, Galway, Kilkenny, Limerick and Waterford. The scheme provides income or corporation tax relief for qualifying expenditure incurred in refurbishing/converting qualifying buildings which are located within pre-determined 'Special Regeneration Areas' (SRAs).
During the Committee Stage of the 2021 Finance Bill, I gave a commitment to review the measure in line with the Department's Tax Expenditure Guidelines before its scheduled sunset date at the end of this year.
However, the scheme is a very specific tax incentive, established in compliance with the Department of Finance’s Tax expenditure Guidelines, with the aim of encouraging businesses and home-owners back to the centre of Irish cities in order to preserve historic buildings in special regeneration areas. I do not believe that it is a suitable vehicle for broader application beyond its original policy goal and I have no plans at present to extend the scheme along the lines mentioned by the Deputy.
An extension of Living City would amount to s. 23 type relief. These types of reliefs were, with good reason, ended a over decade ago. Also, a proposal to extend would have the potential for increased Exchequer costs and would give rise to state aid concerns. Ireland’s past experience with tax incentives in this sector strongly suggests the need for a cautionary stance.
