Robert Troy (Longford-Westmeath, Fianna Fail)
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183. To ask the Minister for Finance his plans to introduce measures that would incentivise property owners to renovate unused residential units over retail premises to help with the housing shortage and encourage more persons to live in village and town centres; and if he will make a statement on the matter. [32038/16]

Michael Noonan (Limerick City, Fine Gael)
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The Home Renovation Incentive (HRI) provides for an income tax credit for homeowners or landlords who carry out repair, renovation or improvement work on their property. 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 was introduced in October 2013. It provides for tax relief by way of an income tax credit at 13.5% of qualifying expenditure. Qualifying work must cost a minimum of €5,000 including VAT at 13.5% rate. The maximum qualifying cost for the purpose of the incentive is €30,000 including VAT at 13.5%. This equates to a maximum tax credit of €4,050. The tax credit is payable over the two years following the year in which the work is paid for. I extended this incentive for a further two years, until the end of 2018, in the Budget.

The Living City Initiative is a scheme of property tax incentives designed to regenerate both historic buildings and other buildings in specified cities. It was enacted in the Finance Act 2013 and commenced on 5th May 2015. The scheme applies to certain special regeneration areas (SRAs) in the centres of Dublin, Cork, Limerick, Galway, Waterford and Kilkenny. In line with my Department's commitment to evidence based policy-making, the inclusion of these additional four cities followed the completion of a comprehensive, independent ex-ante cost benefit analysis. The relief applies to both residential and commercial refurbishment and conversion work that is carried out during the qualifying period. There are 2 types of tax relief available under the Living City Initiative - an owner-occupier residential element, and a retail/commercial element.

I announced a number of changes to the scheme in the Budget which aim to get the design of the Initiative right so that it can be more effective. Once this has been achieved, it will then be possible to consider how, or if, the Initiative could be extended to other locations. The Deputy will be aware of a further commitment in the Programme for Partnership Government, to examine the introduction of a similar scheme to the "Living City Initiative" to regenerate town centres and villages throughout Ireland. It is important that the underpinning scheme is made more effective, as until that has been achieved and evidenced, extension of eligibility for it to other towns would be largely meaningless.