Brendan Griffin (Kerry South, Fine Gael)
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191. To ask the Minister for Finance if the tax relief provided in the home renovation initiative can be provided over a number of years; and if he will make a statement on the matter. [2296/14]

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 came into operation on 25 October 2013 and will run until 31 December 2015. The incentive provides 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 (inclusive of VAT).  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. Any unused credit will be carried forward to future years.

It is worth noting that the minimum threshold does not have to be reached by each contractor where a homeowner engages a number of contractors to carry out different works.  So long as the aggregate payments reach the minimum threshold of €5,000 inclusive of VAT, the homeowner will qualify for relief.

The scheme will be administered through Revenue s online systems. Contractors will be required to inform Revenue in advance of details of works to be carried out and will also be required to notify Revenue in relation to any payments received in respect of the works. Homeowners will be able to view the information provided to Revenue by the contractor through the Revenue electronic systems and will also claim the relief through those systems.

Full details of the scheme are available on the Revenue website at along with a newly produced Guide for Homeowners. Copies of the Guide are being distributed to all local Revenue Offices and Citizens Advice centres.