HRI for Homeowners and Landlords
The Home Renovation Incentive (HRI) is a relief from Income Tax (IT) for homeowners, landlords and local authority tenants. You can claim the HRI Tax Credit for repairs, renovations and improvements to your home or rental property.
How it Works
A Home Renovation Incentive (HRI) Scheme is provided by Revenue, which will run from 25 October 2013 to 31 December 2016 for Homeowners and from 15 October 2014 to 31 December 2016 for Landlords. The Incentive provides for tax relief by way of an Income Tax credit at 13.5% of qualifying expenditure on repair, renovation or improvement works carried out on a main home or rental property by qualifying Contractors.
Qualifying expenditure includes all home insulation & heating and plumbing services, provided by Churchfield Home Services.
The credit is payable over the two years following the year in which the work is carried out and paid for. The first year for HRI tax credits is 2015 for Homeowners and 2016 for Landlords.
The works must be carried out on or after 25 October 2013 and up to 31 December 2015. Homeowners must be Local Property Tax and Household Charge compliant in order to qualify under the Incentive. Contractors must be VAT and RCT registered and tax compliant in order to qualify to carry out works under the HRI. The Incentive will be administered through Revenue HRI online. All works, payments and claims will be entered to HRI online.
How much you can earn
The works must cost a minimum of € 4,405 (before VAT), which will attract a credit of € 595.
Where the cost of the works exceeds € 30,000 (before 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 and paid for. 2015 will be the first year for HRI tax credits.
If you have a semi-detached house and are having your home externally insulated at an approximate cost of €14,000. The total deductible is a factor of 3 times the grant monies received, in this case €3,400, which equate to €10,200.
Therefore the qualifying expenditure for income tax relief is €3,800 (€14,000-€10,200=€3,800) X 13.5% which equates to €513.