Home Renovation Incentive scheme
Heating system grants
The Home Renovation Incentive (HRI) scheme provides for tax relief for Homeowners by way of an Income Tax credit at 13.5% of qualifying expenditure on repair, renovation or improvement works carried out on the Homeowner’s main home by qualifying Contractors. Repair or upgrade to heating system grants and solar panel grants are available.
The amount of the HRI tax credit depends on the amount spent on qualifying works. Tax relief can be claimed on qualifying expenditure over €4,405 (before VAT at 13.5%). While there is no upper limit on expenditure on qualifying works, the tax credit will only be given in relation to a maximum of €30,000 (before VAT at 13.5%).
If there are no grants or insurance claims, the lowest tax credit amount is €595 (€4,405 at 13.5%) and the highest tax credit is €4,050 (€30,000 at 13.5%).
If you paid €5,000 (before VAT) to a VAT registered and tax compliant electrician for rewiring your home, your tax credit is €5,000 x 13.5% = €675.
2015 will be the first year for HRI tax credits. In general, the HRI tax credit will be included in tax credits over two years, starting the year after the work is carried out and paid for.
WHAT TYPE OF WORKS QUALIFY?
Examples of repair, renovation or improvement works that qualify under the Incentive include:
- Central heating system grant for repair or upgrade
- Supply and fitting of solar panels
- Painting and decorating
- Supply and fitting of kitchens
- Plumbing Septic tank repair or replacement
- Supply and fitting of built in wardrobes
- Bathroom upgrades
- Supply and fitting of windows
- Attic conversions
The VAT rate on works carried out must be 13.5%.