John Deasy (Waterford, Fine Gael)
Link to this: Individually | In context | Oireachtas source

112. To ask the Minister for Finance if he has received proposals from other Departments for a scheme similar to the home renovation incentive scheme to incentivise the refurbishment of derelict business premises in towns and villages; and if so, when such a scheme will be introduced. [12867/18]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I did not receive a proposal for a scheme similar to the home renovation incentive scheme to incentivise the refurbishment of derelict business premises in towns and villages from other Ministers, or their Departments, in the course of preparations for Budget 2018, nor have I received such a proposal so far this year.

John Deasy (Waterford, Fine Gael)
Link to this: Individually | In context | Oireachtas source

113. To ask the Minister for Finance the plans or proposals received for a scheme to incentivise the purchase and renovation of old cottages and rural dwellings which may otherwise fall into dereliction; and if so, when this will be introduced. [12868/18]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I have received a number of proposals for tax incentives along the lines the Deputy suggests.

The use of tax incentives and reliefs in accordance with the tax expenditure guidelines published by my Department, is one of a number of potential approaches that can be adopted to deal with the issues mentioned by the Deputy. There are number of tax incentives already in operation which incentivise the purchase and renovation of certain qualifying dwellings which may otherwise fall into dereliction.

The Living City Initiative (LCI) targets dwellings built before 1915 which demonstrate clear evidence of neglect, dereliction and under-use. The dwellings must be located within the designated ‘Special Regeneration Areas’ which are particular urban areas that have been identified as being in need of regeneration. Individuals participating in the scheme receive a tax relief for expenditure on refurbishment and conversion work.

A review of LCI was undertaken last year by my officials and this was published in the Report on Tax Expenditures (October 2016) that was released on Budget Day. In light of the findings in the report, and in consultation with the relevant councils and the Minister for Culture, Heritage and the Gaeltacht. I announced a number of changes to the scheme in Budget 2017 to make the incentive more attractive and effective. The aim is to get the design right and working in an effective manner. It is important that the underpinning scheme is made more effective, as until that has been achieved, extension of eligibility for it to other towns or cities would be largely meaningless. Accordingly, I do not currently propose to extend the incentive beyond the present locations.

The Home Renovation Incentive (HRI) was introduced on 25 October 2013 to promote the renovation, repair and improvement of the residential stock.

HRI provides for a tax credit where the VAT exclusive spend on a qualifying property is at least €4,405. The tax credit represents 13.5% of the total cost of works subject to a maximum credit of €4,050. The incentive was extended from 15 October 2014 to include renovation, repair and improvement of rental properties whose owners are liable to income tax. The incentive was further extended to local authority tenants from 1 January 2017. Only works carried out by a tax compliant contractor qualify. The types of premises to which the Deputy refers may qualify for this incentive.

Historically, there were several area-based property incentives in operation, such as the Rural Renewal scheme. These incentives provided tax relief for expenditure incurred by owner-occupiers on the construction, conversion or refurbishment of residential accommodation in certain designated areas. Two extensive reviews of property taxation incentives were undertaken by independent economic consultants Goodbody and Indecon in 2005, which recommended that the vast majority of these initiatives be ceased. These recommendations were followed and most of these schemes have been gradually phased out of the tax code since 2006. I am not in favour of their reintroduction.

Finally, "Realising our Rural Potential: Action Plan for Rural Development" 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 Rural and Community Development 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.