Aodhán Ó Ríordáin (Dublin North Central, Labour)
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68. To ask the Minister for Finance if he will provide the rationale behind the criteria for the building renovation scheme, specifically in relation to who qualifies for the scheme, as well the established bands of the scheme in view of the fact that it disproportionately benefits higher earners; and if he will make a statement on the matter. [27522/14]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware, I introduced the Home Renovation Incentive in Finance (No. 2) Act 2013. The aim of the incentive is to support tax compliant building contractors by moving activity out of the shadow economy into the legitimate economy.

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. In order to qualify for the tax credit, the works must be carried out by legitimate contractors and the homeowner must also be property tax compliant. A minimum of €4,405 excluding VAT must be spent on qualifying works. This threshold can be reached over a number of jobs. Relief is available on qualifying expenditure up to a maximum of €30,000, excluding VAT.

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

The HRI is designed to be set against income tax and the Minister has no plans to extend this initiative to individuals who have no tax liability. However, the tax credit is being provided over a period of two years in order to assist those with low incomes. In addition, unused credits may be carried forward to future years. If a retired homeowner has a private pension which is liable to tax, then they will be able to avail of the incentive.

It is worth noting that the SEAI operates the Better Energy Homes Scheme where cash grants are provided for qualifying works. The SEAI also install energy efficiency measures at no cost to qualifying individuals under the Warmer Homes Scheme. Further information on these schemes is available on the SEAI website, .