Pearse Doherty (Donegal, Sinn Fein)
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323. To ask the Minister for Finance if the rent tax credit is envisaged as being a permanent part of the tax base in the years ahead; if the rent tax credit is in the base for 2024, 2025, 2026, 2027 and 2028; and if so, its cost in each year. [13089/23]

Michael McGrath (Cork South Central, Fianna Fail)
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The €500 rent tax credit introduced in Budget 2023 will be available until 2025, at an estimated cost of €200 million per year.

In 2023 renters can claim the relief in respect of rent paid in both 2023 and in 2022. This is reflected in my Department’s fiscal projections, which include a €400 million impact from the rental credit for 2023 and €200 million thereafter until 2025, the last year incorporated in the most recent suite of forecasts published as part of Budget 2023.

Given that refunds of tax paid may be claimed up to four years after the relevant tax year, it may be expected that legacy costs may arise for the period after the sunset of the scheme at end-2025.