Home Renovation Tax Relief will boost Construction and save Money for Homeowners – DEERING.

30th October, 2013

Carlow Fine Gael TD, Pat Deering, has said that homeowners should be aware that they can now avail of the special tax relief on renovations and home improvments, under the Home Renovation Incentive Scheme as announced in the Budget, from Friday 25th October. The Minister for Finance, Michael Noonan TD, has brought forward the measure in the Finance Bill.

“This is a really positive measure that will not only provide a welcome boost to the construction sector, it will also provide homeowners who want to carry out renovations with some welcome tax relief. I am delighted that Minister Noonan has decided to bring forward this measure, with immediate effect, rather than from January.

“Under the Scheme homeowners who carry out renovations on their home between now and end of 2015 will be provided with an income tax credit. It will be payable over the following two years, and will be calculated at a rate of 13.5% on all qualifying expenditure over €5,000 up to a maximum of €30,000. Individual invoices can be less than €5,000 but you need to spend more than €5,000 in total to avail of the rebate.

“In a bid to eliminate the so called ‘shadow economy’, the scheme will only be open to fully tax compliant contractors. This should act as a boost to legitimate contractors and sole traders who have been so badly affected by the crash in the construction sector. This intervention in the sector is a positive move by Government to help address the huge challenges which have faced the industry in recent years.

“This scheme will make it much more affordable to build an extension or carry out a range of works on your home, such as getting new windows fitted, or putting in a new bathroom or kitchen. By using legitimate contractors, we can ensure that works carried out are of a high standard.

“It is particularly positive that this scheme is coming into effect immediately, as there can traditionally be a lull in the construction sector in the run up to Christmas. A delay in implementing the scheme could also have led to homeowners putting off renovations until the New Year. I am confident that a considerable number of homeowners will choose to avail of the scheme, and that it will provide a much needed stimulus to the building sector.”