Michael McNamara (Clare, Independent)
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299. To ask the Minister for Finance the reason that students who are staying in "digs" type accommodation as opposed to students who are staying in Residential Tenancies Board-registered accommodation are not entitled to the recently announced tax credit for student accommodation given that the parents of these students and some of the students are taxpayers; and if he will make a statement on the matter. [55635/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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As announced in Budget 2023 and provided for in Finance Bill 2022, an income tax credit of €500 per year will be available to each tenant in an RTB registered private tenancy agreement, rent-a-room/"digs" arrangements, student accommodations and licence arrangements where the renter pays sufficient rent.

Rent paid of €2,500 in a tax year will be sufficient to avail of the full credit of €500.  A person must also pay income tax to avail of the credit. In the case of a single person, the amount of tax that must be paid to fully avail of the relief is €3,900 in 2022 and €4,050 in 2023.

Only one credit may be claimed per person per year. However, it is proposed that the value of the credit will be doubled in the case of jointly assessed married couples and civil partners.

The credit will also be available to parents who pay rent on behalf of their student children who are in third-level education.  Where a student is under 23 years of age on 1st January of the year of their first point of entry into an approved course, the parent(s) will be able to claim the tax credit for the duration ofthat course. This will only apply in the case of RTB registered tenancies to ensure compliance with the terms of the credit and to minimise any possible abuse.