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

The scheme will only apply to homeowners and the principal private residence of the homeowner. As such, it is available for work carried out on the principal private residence of a homeowner. If someone has rented accommodation, he or she qualifies for write-offs against the income from the rental accommodation. This comes under a different part of the tax code and is not being interfered with in any way by this provision.

If Senators are speaking to people who are out of work and have construction skills, they may wish to point out that, under another section of the Bill, people may return to business without incorporating. If, for example, a carpenter is on the dole, he or she can set up in business and be eligible as a contractor once he or she is tax compliant. The incentive being given is that for years one and two, he or she will receive tax relief against income tax on the first €40,000 of income in each year. As well as encouraging people to spend on the improvement works we have described, another section provides an incentive for unemployed persons to set up in business as self-employed business people without incorporation. The incentive is that they will receive relief up to €40,000 in the first and second years that they are carrying on the business. This measure would suit building workers who wish to establish a business and return to the construction sector as small contractors. People must be local property tax compliant, even though the NPPR attaches to the credit. The tax compliant clarification is provided.