Pearse Doherty (Donegal, Sinn Fein)
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158. To ask the Minister for Finance the estimated cost of increasing the earned income credit to the same level as the PAYE credit; and if he will make a statement on the matter. [21608/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that estimated costs for increases to the Earned Income Credit are available on page 6 of the Revenue Ready Reckoner, which is available on the Revenue website at www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf.

Amounts other than those shown can be extrapolated using a straight line or pro-rata calculation.  On that basis, the cost of increasing the Earned Income Tax Credit by €300 from the current level of €1,350 to €1,650 is €40 million in the first year and €72 million in a full year.

Pearse Doherty (Donegal, Sinn Fein)
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159. To ask the Minister for Finance the estimated cost of introducing a tax relief of 8.33%, that is equivalent to one month's rent for rent paid by all renters not in receipt of other State assistance on a refundable basis. [21609/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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The rent relief tax credit was abolished in Budget 2011 and is no longer available to those that commenced renting for the first time from 8 December 2010.  This followed a recommendation in the 2009 report by the Commission on Taxation that rent relief should be discontinued. The view of this independent commission was that, in the same manner in which mortgage interest relief increases the cost of housing, rent relief increases the cost of private rented accommodation.

I am advised that there is no reliable basis available to Revenue on which to estimate the potential cost of the introduction of a tax relief as described by the Deputy.

The annual cost of such a tax credit, operating on a refundable basis, would depend on the number of those renting, other than those who are in receipt of rental support from the State, and the amount of rent paid by them each year.  

According to Census 2016 data, the private rented sector amounts to approximately 310,000 units.  This figure includes those in receipt of rental support from the State.

It is clear, therefore, that the costs involved would be likely to be very significant.

Pearse Doherty (Donegal, Sinn Fein)
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160. To ask the Minister for Finance the estimated overall cost or gain of decreasing the research and development credit to 15% and 20%, respectively generally but increasing it to 30% for SMEs. [21610/19]

Pearse Doherty (Donegal, Sinn Fein)
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161. To ask the Minister for Finance the estimated cost of increasing the research and development credit for SMEs to 30%. [21611/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 160 and 161 together.

I am advised by Revenue that statistical information in respect of the Research & Development credit is available at link www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/index.aspx for all years up to 2017.

Information on likely future expenditure on research and development is not available. However, based on information included in the 2017 Corporation Tax returns in respect of research & development claims and associated refundable credits for SMEs (defined here as companies with less than 250 employees), the estimated cost of increasing the credit to 30% is in the region of €32 million.

On the same basis, the estimated gain from increasing the rate to 30% for SMEs and decreasing the rate to 20% for other companies is in the region of €26 million. The estimated gain from increasing the rate to 30% for SMEs and decreasing the rate to 15% for other companies is in the region of €84 million.

A review of the research and development tax credit is being undertaken by my Department in 2019. This review will examine the interaction of SMEs with the credit as part of its scope.