Pearse Doherty (Donegal, Sinn Fein)
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230. To ask the Minister for Finance the cost to the Exchequer of the deduction for retrofitting expenditure in 2025 and 2026. [40521/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Section 32 Finance Act 2022 inserted a new section 97B into the Taxes Consolidation Act 1997 (TCA), introducing a tax incentive for landlords of rented residential property to undertake retrofitting works while the tenant remains in situ. This section provides for a tax deduction against rental income for certain retrofitting expenses incurred by landlords on rented residential properties.

To qualify for the deduction, retrofitting expenditure must be incurred in the period between 1 January 2023 and 31 December 2025. Retrofitting works carried out in a year can be claimed against Case V rental income for the following year. For example, expenses on retrofitting works undertaken in 2023 can be claimed as a tax deduction against Case V rental income for 2024 (the return for which is due to be filed in 2025 and so on until 2027). Therefore, there are no data currently available in relation to the Exchequer cost of the scheme.

The scheme will expire at the end of 2025. If the measure were to be extended beyond its current end-date, estimates in relation to 2026 and beyond will be based on the latest available data.

As the Deputy will be aware, it is a long-standing practice that the Minister for Finance does not comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.