As the Deputy will be aware, the Home Renovation Incentive (HRI) provides a tax relief by way of an income tax credit in respect of repair, renovation or improvements works on principal private residences or rental properties where the works are carried out by tax compliant contractors. The repair, renovation or improvement works must have been carried out on or after 25 October 2013 and on or before 31 December 2018. If works were in progress on 25 October 2013, only the portion of the works carried out and paid for on or after 25 October 2013 qualifies for the relief.
I am advised by Revenue that where all conditions of the incentive are satisfied, the relief is given by way of a tax credit split evenly over the two years following the year in which the works are paid for. Where a claimant does not have sufficient income tax liability to utilise the tax credit in full over the two years following the year in which the works were paid for, then the credit is carried forward to subsequent years until it has been used in full. The amount of the credit used in any tax year cannot be greater than the amount which reduces the income tax charged on the claimant in that tax year to nil.