Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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88. To ask the Minister for Finance if he will consider reversing the decision to abolish the one-parent family tax credit to the non-resident parent and reform this tax credit to non-resident parents; and if he will make a statement on the matter. [48014/13]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware, the One-Parent Family Tax Credit (OPFTC) is being replaced with a new Single Person Child Carer Tax Credit from 1 January 2014. The Single Person Child Carer Tax Credit will be of the same value, i.e. €1,650, as the existing OPFTC and will also carry the same entitlement to the extended standard rate tax band of €36,800 per annum. The new credit will be targeted such that it is available only to the primary carer of the child. A maximum of one credit will be available per single carer/claimant, regardless of whether he or she cares for more than one child. This is the same condition that applies to the current OPFTC. Given the difficult fiscal environment it is essential to review all tax reliefs, credits and incentives in order to ensure that they are properly targeted and if necessary re-focused in order that they can achieve the socio-economic objectives that are set for them. A system that allows multiple claims in respect of the same child, as can happen with the OPFTC, is unsustainable.

The Commission on Taxation acknowledged that the One-Parent Family Tax Credit plays a role in supporting and incentivising the labour market participation of single and widowed parents. However, in its recommendations it concluded that the credit should be retained but that it should be allocated to the principal carer only. The restructuring of the credit will achieve such an outcome. Allocation of childcare responsibilities is primarily for parents to agree. However, having listened carefully to the views expressed by colleagues and Deputies, I have asked my officials to explore how the credit could be used by another individual, where the primary carer chooses not to, or cannot, claim it and accordingly I will be bringing forward an amendment at Committee Stage.

Brendan Griffin (Kerry South, Fine Gael)
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89. To ask the Minister for Finance if he will consider extending the income tax credit for the home renovation scheme announced in budget 2014 to persons in receipt of pensions; and if he will make a statement on the matter. [48016/13]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware, I announced the Home Renovation Incentive in the recent Budget. This scheme will run from 25 October 2013 to 31 December 2015 and provides for tax relief for homeowners by way of a tax credit at 13.5% of qualifying expenditure incurred on repair, renovation or improvement work carried out on a principal private residence. Qualifying expenditure is expenditure subject to the 13.5% VAT rate. The work must cost a minimum of €5,000 (exclusive of VAT) which would attract a credit of €675. Where the cost of the work exceeds €30,000 (exclusive of VAT) a maximum credit of €4,050 will apply. The credit is payable over the two years following the year in which the work is carried out. Works carried out between 25 October 2013 and 31 December 2013 will be considered to have taken place in 2014 for the purposes of awarding the tax credit.

As the relief is being made available by way of tax credit, only individuals who have a tax liability will be in a position to avail of the incentive. However, any pensioner who has an occupational pension and pays tax on that pension will be able to qualify. The credit is payable over two years in order that individuals who may pay small amounts of tax can avail of it. In addition, any unused credit may be carried forward to future years.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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90. To ask the Minister for Finance if he will explain the changes in tax credits in respect of a person (details supplied) in County Dublin. [48018/13]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that the person in question had been in receipt of the One Parent Family Tax Credit for a number of years. It subsequently came to Revenue’s attention that he had been residing with his partner for the years concerned. Consequently, the credit was withdrawn from the person concerned in accordance with section 462 (2)(c) of the Taxes Consolidation Act 1997, which stipulates that the credit does not apply for any year of assessment in the case of cohabitants.