The Home Renovation Tax Incentive Scheme introduced in Budget 2014 which allows homeowners to claim tax back on renovations on their home should provide a boost to the construction industry, says Cork East Fine Gael TD, David Stanton. The measure introduced in Budget 2014 will cover qualifying renovations from now until the end of 2015.
“The Home Renovation Tax Incentive Scheme, as included in the recently published Finance (No.2) Bill 2013, allows for an income tax credit of 13.5% on all home renovations costing between €5000 and €30000 which are carried out for the remainder of 2013, and all of 2014 and 2015. The relief will be paid to homeowners over a two year period after the work is carried out and is essentially a refund of the 13.5% VAT.
“It is hoped that this measure will help boost the construction industry and trades by encouraging people who have been considering carrying out improvements but were hesitant to do so in the current economic climate. Allowing for a portion of the cost to be reclaimed through the tax system should act as an incentive to get the work done, thus generating employment in the construction sector.
“To qualify for the relief homeowners must by Local Property Tax compliant and must use a tax compliant and VAT registered contractor. This should be good news for the vast majority of those working in the trades and sub-contractors who are fully tax compliant but have found it difficult to compete with prices offered by black market operators.
“The Home Renovation Tax Incentive Scheme is just one of a series of measures introduced in Budget 2014 which form part of the €500 million jobs stimulus package aimed at further supporting the creation of employment and our economic recovery.
“Anyone interested in finding out more about the home renovation scheme as included in the Finance Bill can go to http://www.oireachtas.ie/viewdoc.asp?DocID=24596&&CatID=59
Or the Government’s Budget 2014 website: http://www.budget.gov.ie
Details of the full jobs stimulus package can be found the Department of Jobs, Enterprise and Innovation website at: http://www.djei.ie/press/2013/20131015.htm