230 Galway homeowners get €3.7m for renovations

Galway’s tradesmen and builders received a boost as €3.7 million was pumped into the city and county under the Government’s Home Renovation Scheme.

Finance Minister Michael Noonan said that a total of 232 homeowners in Galway claimed €3.786 million in tax reliefs and incentives to renovate their properties in 2013.

Minister Noonan said he introduced the scheme in the Budget to boost activity in the construction sector, and to allow homeowners renovate their private residence.

The incentive to homeowners is by way of a tax credit on works qualifying for VAT at the rate of 13.5% where they engage tax compliant contractors to carry out the renovation works.

The tax credit is granted over the two years following the year the work is carried out and paid for, and an online system to enable homeowners to claim the credit will be available in January 2015.

The work must cost a minimum of €5,000 (inclusive of VAT) which would attract a credit of €595.  Where the cost of the work exceeds €30,000 (exclusive of VAT) a maximum credit of €4,050 will apply.

Minister Noonan said the scheme is working. “The level of Home Renovation Incentive activity is significant with the total number of works recorded as at July 6, 2014 being 6,862 for a total estimated value of €114.9m carried out by 2,014 tax compliant contractors,” he said.

The works must be carried out on or after October 25, 2013 and up to 31 December 2015. Homeowners must be Local Property Tax and Household Charge compliant in order to qualify under the incentive.

More information is available on Revenue.ie.