Brendan Griffin (Kerry South, Fine Gael)
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52. To ask the Minister for Finance his views on further ways of stimulating activity in the construction industry by improving incentives to engage in construction projects large and small; if the home renovation incentive scheme is showing any signs of job creation and-or support; his views on whether further incentives would be an effective way to complement the allocation of funding towards capital projects as a means of creating and sustaining jobs in construction; and if he will make a statement on the matter. [15815/14]

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. It 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.

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.

It is anticipated that this system will 'go live' in early April 2014. Contractors will need to enter the details of qualifying works already carried out within 28 days of the electronic system becoming available. Until the system is live and details of works carried out are entered, there are no figures available on the incentive. However, there has been a high level of interest expressed in the scheme. 

The Deputy will also be aware that I announced in my Budget Statement that the Living City Initiative, which was enacted in the Finance Act 2013, would be extended to now include the cities of Dublin, Cork, Galway and Kilkenny as well the original target cities of Limerick and Waterford. The inclusion of these four cities within the Initiative followed the results of a thorough independent ex ante cost benefit analysis.

The Initiative will provide tax incentives for works performed to refurbish residential and retail buildings either to bring them up to a habitable standard or to make improvements to buildings which are currently inhabited. The residential incentives will be targeted at owner/occupiers rather than property developers or the rental sector. The application for State Aid approval has been submitted to the European Commission.

In relation to other ways of stimulating activity in the construction industry, section 9.3 of the Action Plan for Jobs 2014 sets out the Government commitments with regard to construction and property. You can access the Action Plan on the website of the Department of Jobs, Enterprise and Innovation at: