Taxes Consolidation Act 1997 section 97B

Deduction for retrofitting expenditure

Section 97B provides a tax deduction against rental income for landlords who incur qualifying retrofitting expenditure on rented residential properties.

• A landlord who incurs expenditure on improving the energy efficiency of a rented residential property can claim a deduction equal to the lesser of the qualifying expenditure and €10,000, provided the expenditure is part-funded by an approved retrofitting grant from the Sustainable Energy Authority of Ireland.
• The qualifying works must be carried out while the property remains tenanted, the property must be registered with the Residential Tenancies Board (or be a dwelling subject to Part II of the Housing (Private Rented Dwellings) Act 1982), and the expenditure must be incurred during the period 1 January 2023 to 31 December 2030.
• For expenditure incurred in 2023, 2024 or 2025, the deduction is claimed in the following tax year and is limited to two properties; from 2026 onwards, the deduction is claimed in the year the expenditure is incurred and the property limit increases to three.
• The deduction is clawed back if, within two years of the works being completed, the landlord breaches tenancy obligations or the property ceases to be let — unless the landlord is actively seeking a new tenant on fair terms and at market rent.