Home Renovation Incentive
The Home Renovation Incentive (HRI) provides tax relief for you by way of an income tax credit at 13.5% of qualifying expenditure on:
- repair works,
- renovation works
- improvement works
You can spend as much as you like but you can only claim the HRI tax credit on amounts up to €30,000 (before VAT)
Rules
- To qualify for the HRI, you must be an owner-occupier and the work must be carried out on your principal private residence.
- You must be up to date with your obligations under the Local Property Tax and, if applicable, the Household Charge.
- You must be paying income tax – whether under PAYE or self-assessment – to avail of the HRI.
- Any contractor you use must be registered for Value Added Tax (VAT) in Ireland and be tax- compliant. Revenue has published a checklist for contractors.
- If several contractors, such as a builder, a plumber and an electrician, carry out qualifying work on your home, you can combine the cost of the works to make up the minimum qualifying amount.
- The type of work that qualifies for the HRI is repair, renovation or improvement work that is subject to VAT at 13.5%. This includes extensions, garages and attic conversions; the supply and fitting of kitchens, bathrooms and built-in wardrobes; fitting of windows; plumbing, tiling, rewiring and plastering.
- If you are having your septic tank repaired or replaced, or are installing a radon gas mitigation solution, these types of work also qualify for the HRI.
- Work on driveways and on rainwater harvesting systems can also qualify.
- Work that is subject to VAT at 23% (such as architect’s fees) is not covered. Neither are items such as furniture, white goods or carpets.
