Tenants would be in line for an extra €250 in renters’ tax credit under proposals under consideration in the budget.
Increasing the current level of the credit from €750 to €1,000 is being discussed as budget talks continue.
The moved is being pushed by Fianna Fáil, with Minister for Finance Jack Chambers and Minister for Housing Darragh O’Brien saying they would like to see the rent tax credit increased in recent months.
Under the current rent tax credit regime the amount of the credit a tenant can apply for is a maximum of €750 for an individual or €1,500 for jointly tax assessed married couples or civil partners.
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The budget proposals, if adopted, would mean renters would be in line for an extra €250 for 2024, on top of the €750 already available and would be able to make such an application from January.
The level of rent tax credit would also be increased to €1,000 for 2025 so in effect individuals could claim up to €2,000 over the two years.
Couples who are jointly assessed for tax would be in line for up to €2,000 rent tax credit for both 2024 and 2025.
Speaking on Monday Mr O’Brien said he would welcome just increases to the renters’ tax credit being introduced in Budget 2025.
[ Tax changes in last budget helped boost lower paid worker incomesOpens in new window ]
He said: “The renters’ tax credit is a significant measure to help reduce the cost for renters out there. Rents are too high. That’s why we’ve been focusing on delivering more cost rental and cost rental at scale. For those who are in the rental market the renters’ tax credit really helps them.
“So we haven’t agreed a figure yet because that would be a matter for all of Government together to agree across the three parties, but I certainly have been looking for and discussing with [Mr Chambers] as well a significant increase in the renters’ tax credit and if that can be applied this year and indeed next.”
He said: “That’s something I would welcome and I’m sure a lot of renters would welcome as well.”
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