Paschal Donohoe (Dublin Central, Fine Gael)

The exemption applies only to cost-rental homes designated from 8 October onwards, as projects designated prior to this date have already been financially modelled with the cost of corporation tax on rental properties included in the cost and rent calculations. The Department of housing has advised that cost rents are set using this project modelling and that it would not be possible to now change rents for active tenancies. As applying the exemption retroactively would not result in reduced rents for tenants in accommodation designated as cost-rental accommodation prior to that date and could not retrospectively reduce the secure tenancy affordable rental investment scheme, STAR, funding provided to projects, the exemption will apply to new projects designated as cost rental post budget day only. This will ensure the value of the exemption is passed on either through reduced STAR subsidy or reduced cost rents. Those who already in cost-rental accommodation are already paying rents that are lower than market rents, as they are fully entitled to. They are already receiving a reduction on what the market rents would otherwise be.