Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The maximum qualifying cost for the purpose of this incentive, which is modelled on the home extension scheme and in respect of which the same caps apply, is €30,000, inclusive of VAT at 13.5%. This provides for a maximum tax credit of €4,050. This would be the relief in respect of any one apartment. As it is confined to income tax payers, the cap will be the level of income tax paid by the person, including, for example, in respect of refurbishment of a property which includes a flat at bottom level and three bedsits on each floor above that level. It is not possible to get relief unless one is paying income tax. Most of those involved would not have a huge income tax liability. Those who have would run out of headroom to avail of the tax credit. Obviously, they could defer some of it to the following year and so on. The best thing to do is to monitor it and see how it works, which Revenue will do. As I said, this does not apply to rental companies that are incorporated.