Taxes Consolidation Act 1997 section 477B

Home renovation incentive

Section 477B provided for the home renovation incentive, a scheme giving income tax credits to individuals who incurred qualifying expenditure on repair, renovation, or improvement work on their home or rental property between 2013 and 2018.

• The incentive gave a tax credit equal to 13.5% of qualifying expenditure (VAT-exclusive) on eligible repair, renovation, or improvement work, subject to a minimum spend of €5,000 (including VAT) and a maximum credit of €4,050 (based on €30,000 of VAT-exclusive expenditure).
• The scheme applied to owner-occupied homes from 25 October 2013, rental properties registered with the PRTB from 15 October 2014, and local authority tenancies from 1 January 2017, with all qualifying work required to be completed by 31 December 2018.
• The tax credit was spread over the two years of assessment following the year of payment, with 50% available in the first year and the balance in the second; any unused credit due to insufficient tax liability could be carried forward indefinitely.
• Contractors were required to be VAT-registered and tax-compliant, and both contractors and claimants had to use Revenue's online system to notify, report, and claim under the scheme.