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

The Living City Initiative (LCI) (provided for in Finance Act 2013 and commenced on 5 May 2015) is a tax incentive aimed at the regeneration of the historic inner cities of Dublin, Cork, Galway, Kilkenny, Limerick and Waterford. The scheme provides income or corporation tax relief for qualifying expenditure incurred in refurbishing/converting qualifying buildings which are located within pre-determined 'Special Regeneration Areas' (SRAs).

In accordance with my Department's Tax Expenditure Guidelines, the following criteria apply to its evaluation: 

As a demand led tax expenditure, LCI is not subject to the estimates process and is not a voted expenditure. 

There are three types of relief available:

1. Owner-occupier residential relief;

2. Rented residential relief; and,

3. Commercial/Retail relief. 

The following table outlines the cost/uptake for all 3 elements of the scheme combined between 2013 and 2017 (the most recent year for which data are available).

Year	No. of claimants	Max Tax Cost (€M)*	Amount claimed (€M)
2017	20	0.1	0.4
2016	15	0.2	0.5
2015	13	0.2	0.5
2014	N/A	0.1	0.2
2013	N/A	0.05	0.1

*assumed at 40% for IT and 12.5% for CT

Finally, as the Deputy may be aware, LCI was due to terminate on 5 May 2020 in accordance with its sunset clause.However, Finance Bill 2019 provides for an extension of the scheme until 31 December 2022. The rationale behind this decision is to allow time for a series of enhancements to the incentive (as provided for in Budget 2017) to take full effect.