A new section 477C TCA 1997 provides an income tax rebate for first-time purchasers of newly built homes. The rebate is calculated on the income tax (including DIRT) paid by the taxpayer in the previous four tax years. The rebate is a maximum of 5 per cent of the purchase price of a new home or a self-build up to a value of €400,000 in both cases. The rebate will also be available for new homes valued between €400,000 and €600,000 subject to the cap of €20,000. Following Committee Stage of the Finance Bill, the upper limit on the value of property that will be eligible is being reduced from €600,000 to €500,000 where the contract to purchase the property is entered into after 31 December 2016 or where the first tranche of the mortgage for a self-build is drawn down after this date. A mortgage of a minimum of 70 per cent loan to value is required to be eligible for the rebate. Where more than one person is involved in a purchase, each person must be a first-time purchaser. Contractors participating in the incentive must register with the Revenue Commissioners and clawback provisions are also built into the incentive. The incentive will be back dated to 19 July for qualifying properties and is set to continue until 31 December 2019.