Brendan Smith (Cavan-Monaghan, Fianna Fail)
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129. To ask the Minister for Finance if there are specific tax incentive schemes available to provide assistance in the refurbishment and upgrading of buildings in town centres or villages for residential or commercial purposes; and if he will make a statement on the matter. [7745/17]

Michael Noonan (Limerick City, Fine Gael)
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The recently launched "Realising our Rural Potential: Action Plan for Rural Development" by the Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs contains a detailed list of actions and priorities with a view to revitalising rural Ireland generally. This effort is being led by the Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs in conjunction with Ministers and officials from other Departments, as well as the Local Authorities and a range of other stakeholders.

A variety of actions included in this plan aim to assist in improving rural towns and making rural Ireland a better place to live. These include the Town and Village Renewal Scheme, under which funding of up to €12 million per annum is available to revitalise rural towns and villages, while there is also a commitment to develop and pilot an initiative to encourage increased residential occupancy in town and village centres.

There are currently no specific tax incentive schemes for the refurbishment and upgrading of buildings in town centres or villages. EU State Aid rules make it difficult to introduce tax reliefs that target specific geographic areas while excluding others. In this regard, the Deputy may be aware of the difficulties that my Department encountered in obtaining state aid approval from the European Commission for the Living City initiative.

Notwithstanding the above, the Home Renovation Incentive (HRI) provides for an income tax credit for homeowners or landlords of residential property, who carry out repair, renovation or improvement works on their property. 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). The maximum qualifying cost for the purpose of the incentive is (€30,000 including VAT), which 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. The Deputy may be aware that I extended the scheme for a further two years in the recent Budget.