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

I move amendment No. 7:

In page 8, to delete lines 9 to 14 and substitute the following:“7. Section 477B of the Principal Act is amended—

(a) in subsection (1)—

(i) by inserting the following definition:

“ ‘housing authority’ has the same meaning as it has in the Housing (Miscellaneous Provisions) Act 1992;”,

and

(ii) in the definition of “qualifying residence”—

(I) in paragraph (c), by substituting “by the individual,” for “by the individual, or”,

(II) in paragraph (d), by substituting “of the qualifying work, or” for “of the qualifying work;”, and

(III) by inserting the following after paragraph (d):

“(e) which is owned by a housing authority and for which the housing authority is charging rent pursuant to section 58 of the Housing Act 1966 for the tenancy or occupation thereof by the individual and where the housing authority has given its prior written consent to the individual to qualifying work being carried out on the residential premises.”,

(b) in subsection (2)—

(i) in paragraph (a)—

(I) in subparagraph (i)—

(A) by substituting “2018” for “2016”, and

(B) by substituting “in subsection (1) refers,” for “in subsection (1) refers, and”,

(II) in subparagraph (ii)—

(A) by substituting “2018” for “2016”, and

(B) by substituting “in subsection (1) refers, and” for “in subsection (1) refers.”,

and

(III) by inserting the following after subparagraph (ii):

“(iii) during the period from 1 January 2017 to 31 December 2018 in the case of a qualifying residence to which paragraph (e) of the definition of ‘qualifying residence’ in subsection (1) refers.”,

and

(ii) in paragraph (d)—

(I) by substituting “2018” for “2016” in each place where it occurs, and

(II) by substituting “2019” for “2017” in each place where it occurs,

(c) in subsection (6)(b)(vi)(I), by substituting “(a), (b) or (e)” for “(a) or (b)”,

(d) in subsection (8), by inserting the following after paragraph (b):

“(c) Subparagraph (i) of paragraph (a) shall not apply in the case of a residential premises referred to in paragraph (e) of the definition of ‘qualifying residence’ in subsection (1).”,

and

(e) in subsection (12), by substituting “(a), (b) or (e)” for “(a) or (b)”.”.

The home renovation incentive provides for an income tax credit for home owners or landlords who carry out repair, renovation or improvement works on their properties. The aim of the incentive is to support increased economic activity by tax compliant building contractors and also to move activity out of the shadow economy into the legitimate economy. The incentive was introduced in October 2013 and extended to landlords from October 2014. It provides for tax relief for home owners or landlords by way of an income tax credit of 13.5% of qualifying expenditure. The home renovation incentive was extended for a further two years in the budget and section 7 of the Bill, as published, provides solely for that extension. Amendment No. 7 proposes to extend access to the home renovation incentive to tenants of local authorities. There was general support among Opposition parties for such an amendment as proposed by Deputy Joan Burton on Committee Stage and I undertook to consider it. Discussions have been held with the Department of Housing, Planning, Community and Local Government in relation to the proposed amendment and, in principle, that Department has no objection to the proposal provided the permission of the relevant local authority is given for any works. Accordingly, I am happy to bring forward the change. The legislative changes contained in amendment No. 7 are slightly more complex than those put forward by Deputy Burton, but they achieve the effect proposed by Deputy Burton on Committee Stage and in amendment No. 8 on Report Stage.

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