Róisín Shortall (Dublin North West, Social Democrats)
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73. To ask the Minister for Finance the total cost to the State of tax incentives for nursing homes in each of the past five years. [6504/17]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by Revenue that a wide range of statistical information is available on Revenue's Statistics webpage at . In relation to the Deputy's Question, information on the cost of tax relief for investment in private nursing homes can be found in http://www.revenue.ie/en/about/statistics/property-reliefs.html  for 2011 to 2014. From provisional data for 2015, the cost of the relief is currently estimated to be in the region of €3.4 million with 130 claims.

Additionally, an exemption from Local Property Tax (LPT) applies to registered nursing homes that are used exclusively for the care of individuals who have been medically certified as suffering from a long-term mental or physical infirmity (the nursing home must be registered under section 49 of the Health Act 2007). The latest Revenue Local Property Tax Statistics for 2016 indicate that about 200 nursing homes availed of this exemption. However, this exemption is not intended to act as a tax incentive but to ensure that, in recognition of their caring/medical aspect vis-à-vis private residential properties, nursing homes are not liable for LPT.  Furthermore, nursing homes may have to pay commercial rates and there is also an LPT exemption available for residential-type properties in respect of which commercial rates are payable to prevent double taxation.

The Deputy may be aware that tax relief is also available to individuals who invest in qualifying nursing homes via the Employment and Investment Incentive (EII).  Information as to the overall cost of the EII is available on Revenue's Statistics webpage but, as data is not collected on a sectoral basis, any cost relating specifically to investments in nursing homes cannot be separately identified.  Individuals may also claim income tax relief at the marginal rate in respect of qualifying nursing home fees.  The annual cost of this relief in the years  2011 to 2014 is as outlined in the table below.  Data for the years 2015 and 2016 is not yet available.

Health Expenses (Nursing Homes Only)