Michael McGrath (Cork South Central, Fianna Fail)
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328. To ask the Minister for Finance his plans to introduce tax relief for persons who carry out remedial works on their own septic tank; and if he will make a statement on the matter. [41814/14]

Michael Noonan (Limerick City, Fine Gael)
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As you are aware, the Home Renovation Incentive (HRI) 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) which would attract a credit of €595.  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. 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.

In the recent Budget I announced that rental properties, whose owners are subject to income tax are also eligible to qualify for tax relief under the HRI. Qualifying works carried out and paid for on these properties from 15 October 2014 will qualify.

I can confirm that septic tank repair or replacement works will qualify for the HRI provided all of the other conditions of the incentive are met.