Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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277. To ask the Minister for Finance his plans to extend the home renovation incentive scheme beyond the deadline of 31 December 2015 as it is a welcome financial assistance to homeowners; and if he will make a statement on the matter. [33291/15]

Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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278. To ask the Minister for Finance his plans to extend the home renovation incentive scheme beyond the deadline of 31 December 2015 and to amend it in order that pensioners can be incorporated to avail of the grant; and if he will make a statement on the matter. [33292/15]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 277 and 278 together.

The Home Renovation Incentive has continued to be very successful, with works on 36,543 properties notified on Revenue s HRI online system, as of 15 September 2015. This represents more than €566 million worth of works involving some 5,975 contractors. The potential total cost to the Exchequer in respect of these properties is approximately €38.26m. The incentive generates employment in the tax compliant construction sector and provides support for homeowners and landlords for building works.

The scheme provides tax relief by way of an income tax credit on the repair, renovation or improvement works on principal private residences or rental property carried out by tax compliant contractors. In addition to providing an income tax relief, the HRI also aims to support tax compliance in the building industry by moving activity out of the shadow economy into the legitimate economy.

Seeing the success of the measure, and to provide some certainty to the sector, I have announced my intention to extend the HRI for a further year, until 31st December 2016. This will allow extra time for homeowners and landlords to make the necessary changes to their properties, and provide additional support to the construction sector for another year.

Finally, with regard to a proposal to amend the scheme, I would point out that this is an income tax relief, not a grant, and therefore individuals who have no income tax liability will not be eligible for this incentive. In order to assist those who are only liable for small amounts of tax, the relief is granted over the two years following the year in which the contractor is paid for the work. Where the credit cannot be used in these two years due to insufficient income tax, then the relief may be carried forward to the following year and each subsequent year until the relief has been used in full.

For individuals who do not have any income tax liability, such individuals may be able to avail of other incentive schemes such as those administered by the Sustainable Energy Authority of Ireland. For example, the SEAI operate cash grants for certain works under the Better Energy Homes Scheme. In addition, they operate the Warmer Homes Scheme, under which work such as attic insulation can be carried out free of charge to qualifying individuals.