Bernard Durkan (Kildare North, Fine Gael)
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Question 127: To ask the Minister for Finance the special tax designation for urban renewal throughout the country; and if he will make a statement on the matter. [19330/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am informed by the Revenue Commissioners that most of the area-based tax incentive schemes such as urban renewal schemes have been terminated. The most recent urban renewal scheme was the Integrated Area Scheme that was introduced by Finance Act 1998 and terminated on 31 July 2008. Under this scheme, tax relief is available in respect of the construction or refurbishment of residential accommodation, both owner-occupied and rented (i.e. section 23 relief), and of commercial premises that have been certified by the relevant local authority as being consistent with the aims, objectives and criteria of that local authority's Integrated Area Plan.

The qualifying period originally terminated on 31 December 2002 but this termination date was extended on a number of occasions subject to certain conditions. For example, the final extension from 31 July 2006 to 31 July 2008 depended on the following conditions being met. In the case of commercial projects, a binding contract in writing, under which expenditure on construction work was to be incurred, had to be in place for the particular project on or before 31 July 2006. Work to the value of 15% of the actual construction costs had to be carried out on, or before, 31 December 2006, with compliance being certified by the relevant local authority on, or before, 30 March 2007. While local authority certification was not required in the case of residential projects, there was still a requirement for work to the value of 15% of the actual construction costs to have been carried out on, or before, 31 December 2006. In addition to these conditions, a limit has been placed on the amount of expenditure incurred after 31 December 2006 that could qualify for tax relief. This limit is 75% of the expenditure incurred during 2007 and 50% of the expenditure incurred between 1 January 2008 and 31 July 2008.

Construction work can continue on a building that had not been completed by 31 July 2008 but the expenditure attributable to any work that takes place after that date cannot qualify for tax relief. Tax relief can only start to be claimed after a building has been completed and the building leased or owner-occupied for the required purpose. There are no set dates by which a person has to acquire a tax incentive property in order for tax relief to start to be claimed.

The areas designated for the scheme (by Order of the Minister for Finance) are in line with recommendations made by a special Expert Advisory Panel appointed by the Minister for the Environment, Heritage and Local Government and are based on the various Integrated Area plans prepared by local authorities. Set out below is a list of the cities and towns that were designated for the scheme. I would point out that only certain areas within those cities and towns were designated. If the Deputy needs information on the precise areas that were designated, details can be found in the relevant Statutory Instrument . Each Statutory Instrument contains a map of the relevant designated area. They are available at www.irishstatutebook.ie. Alternatively, the relevant local authority can provide information on any designated areas within its remit.

A total of 78 Integrated Area Plans (IAPs) were submitted by local authorities under the Scheme and the Expert Panel recommended approval of 49 of these as follows. The sub-areas recommended by local authorities for designation have been reduced in many cases.