The Home Renovation Incentive (HRI) for owner occupiers and landlords has been extended by a further year to 31 December 2016. The incentive was due to finish at the end of this year.

The HRI provides a tax relief by way of an income tax credit at 13.5 per cent of qualifying expenditure on repair, renovation or improvement works of a main home or rental property carried out by tax compliant contractors. The incentive aims to move activity in the construction industry out of the shadow economy into the legitimate economy.

The HRI is being administered through Revenue’s HRI online which is available on MyAccount or on Revenue’s Online Service (ROS). Revenue has information notes, FAQS and demonstration videos available on their website.

Announcing the extension, the Minister for Finance said “the Home Renovation Incentive has continued to be very successful, with works on 36,543 properties have been notified to Revenue’s HRI online system (as of 15 September 2015). This represents more than €566 million worth of works involving some 5,975 contractors. The potential total cost to the Exchequer in respect of these properties is approximately €38.26m”.