Home Renovation Incentive (HRI)

Finance Bill (No. 2) 2013 provides for a Home Renovation Incentive (HRI) which will run from 25 October 2013 to 31 December 2015. The incentive provides for tax relief for Homeowners by way of a tax credit at 13.5% of qualifying expenditure on repair, renovation or improvement work carried out on a principal private residence.

Qualifying expenditure is expenditure subject to the 13.5% VAT rate.

The work must cost a minimum of €5,000 (exclusive of VAT) which will attract a credit of €675. Where the cost of the work exceeds €30,000 (exclusive of VAT), a maximum credit of €4,050 will apply.

The credit is payable over the two years following the year in which the work is carried out.

The work must be carried out and paid for on or after 25 October 2013 and up to 31 December 2015. Homeowners must be LPT compliant in order to qualify under the incentive while Building Contractors must be tax compliant in order to carry out works. 

More information is available on http://www.revenue.ie/en/tax/it/reliefs/hri/index.html