The Home Renovation Incentive Scheme

New Government Home Renovation Incentive Scheme

There was an announcement In Budget 2014, Minister for Finance Michael Noonan introduced the Home Renovation Incentive Scheme.

The scheme is effective from 25 October 2013 and will expire on the 31 December 2015. The Home Renovation Incentive (HRI) provides a tax credit for homeowners on repairs, improvements and renovations carried out on their principal private residence. One of the main reasons this new incentive was introduced was to reduce the competitive advantage that non tax compliant heating contractors have over tax compliant ones. Other benefits of procuring the services of a registered heating contractor reduce the risks regarding health and safety.

It is widely accepted that hiring the non tax compliant contractors increases the risks regarding health and safety. Homeowners must also be aware that from 1st August 2013, health and safety regulations were introduced which will see additional obligations imposed on the homeowner. The Home Renovation Incentive scheme (HRI) will provide an income tax credit on the VAT paid by homeowners carrying out work on their home in the subsequent two years. The credit will be calculated at 13.5pc on qualifying expenditure between €4,405 and €30,000. Where the cost of the work exceeds €30,000 (exclusive of VAT), a maximum credit of €4,050 will apply.

The scheme will support fully tax compliant heating contractors as the spending and relief will have to be registered with the Revenue Commissioners. Please note that home owners can only claim the relief under the Home Renovation Incentive if their Local Property Tax and Household Charge obligations are up to date.

Request an appointment

If you need heating or plumbing works carried out on your property and want to avail of the home renovation scheme,

Request an appointment now or call us on 01 8315566 / lo-call 1850 427947.