Home Renovation Incentive (HRI)

Introduction

The Home Renovation Incentive was announced by the Minister for Finance in his budget speech on 15th October 2013 as a means of incentivising the construction sector, in particular the smaller contractors. There has been considerable interest in the scheme which has been supported by media advertising by businesses in the construction sector and by various announcements of financial support from banks, credit unions, etc.

What types of work qualify?

The work must be carried out on a person's main or principal private residence and qualifying works can include extensions, painting and decorating, plumbing, tiling, plastering, supply and fitting OFF FITTED FURNITURE (KITCHENS , BEDROOMS ,FIRESIDE UNIT ETC),, windows, bathroom upgrades, landscaping, etc., which qualify for the rate of 13.5% VAT. The work can be carried out as one job or on a phased basis and it can be carried out by one or more Contractors.

Qualifying contractors

The incentive is designed to support tax compliant contractors who must be registered for VAT. To operate under the Home Renovation Incentive, a compliant contractor is one who qualifies for the 0% or 20% rate of RCT.