Dáil Éireann Debate, Thursday - 26 February 2026
298. Deputy Eoin Ó Broin asked the Tánaiste and Minister for Finance the number of rental properties that have availed of the tax incentive for small-scale landlords who undertake retrofitting works in respect of 2024, and any other available years. [16074/26]
Amharc ar fhreagraSection 97B Taxes Consolidation Act, 1997 (TCA), inserted by Finance Act 2022, provides for a tax incentive for landlords of rented residential property to undertake retrofitting works while the tenant remains in situ.
It is a tax deduction against rental income for certain retrofitting expenses incurred by landlords on rented residential properties. The maximum amount of tax deduction that can be claimed is the lesser of the qualifying expenditure incurred or €10,000. The expenses that qualify for deduction are those for which the landlord has received a home energy grant from the Sustainable Energy Authority of Ireland (SEAI). The tax deduction is conditional on the landlord having received a grant from the SEAI for the retrofitting works.
The tax deduction of up to €10,000 per property in respect of retrofitting works is available, with landlords being able to claim for up to two properties for years 2023, 2024 and 2025. The measure was extended in Finance Act 2025 to 31 December 2028 and gives greater certainty to landlords over the coming years so they can invest in their properties. To improve the potential reach of this measure, Finance Act 2025 increased the entitlement of a landlord to claim the relief from a maximum of two qualifying rental properties to three qualifying rental properties in the years 2026, 2027 and 2028.
I am informed by Revenue that up to 31 December 2025, retrofitting works carried out in a year can only be claimed against Case V rental income for the following year. For example, expenses on retrofitting works undertaken in 2023, the first year for which the relief was available, can be claimed as a tax deduction against Case V rental income for 2024, and that data in relation to 2024 will be available in mid-2026, once the returns have been processed and data is prepared for statistical analysis. To further enhance the attractiveness of the relief, the Finance Act 2025 also provided for claims in respect of retrofitting expenses are now allowed in the year in which they occur.
I am further advised by Revenue that the data for 2024 (expenses relating to 2023) will be outlined, once available, on the Revenue website in their ‘Cost of Tax Expenditures’ publication, which can be accessed at www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/cost/index.aspx.
