Septic Tank Grants – Home Renovation Incentive
The introduction of the Home Renovation Incentive (HRI) in Ireland means that you can receive tax relief for your septic tank repair or replacement.
This incentive was originally launched on October 25, 2013. As of January 1, 2017, the incentive has been extended to include local authority tenants who have written consent from local authorities to carry out works.
- It is important to note that holiday home and new builds do not qualify for the HRI.
This is an excellent opportunity for those who wish to carry out works to improve a dwelling or premise by upgrading to a Tricel Novo wastewater treatment plant which is designed in compliance with EN12566-3 certification and S.R. 66.
Tricel Novo before installation
Tricel Novo being installed
Tricel Novo installed
To qualify for the incentive scheme the property within the application must be your main home or a property currently owned and rented out. In the case of the latter, the rental tenant is required to be registered with the private residential tenancies board (PRTB) within six months of the completion of renovation works.
How the incentive works
This incentive means that those who carry out qualified works to repair or replace a septic tank, and other qualified home renovation works, will receive payment in the form of tax credits at 13.5% of the qualifying expenditure which is set against income tax over a two-year period.
The amount of tax credit which can be claimed
This is dependent on the total cost of the qualified works carried out. The HRI is paid in the form of a tax credit at 13.5% of qualifying expenditure, which can be set against your income tax over a two-year period. This effectively reduces the rate of the VAT to zero on any qualifying work, up to a value of €30,000. The minimum expenditure for each qualifying property is 4,405 EUR.
If you are a beneficiary of a grant to help with the cost of the work being carried out, the total qualifying cost will be reduced by three times the value of the grant by the revenue.
If an insurance payment is used for works to a property, the total qualifying cost will be reduced by the amount received from an insurance company payment.
What you need to do
In order to receive the HRI tax credit, it is essential to ensure that the contractor carrying out the renovation work, such as replacing and installing a new septic tank, is qualified and enters the relevant details into the Revenue Online System. A qualifying contractor is one that is registered for VAT and is tax compliant.
Following this, it is necessary to apply to the Revenue Commissioners to receive your entitled tax credits using your PPS number, Local Property Tax number and PIN.
Note: This is a scheme that any tax registered contractor will be aware of.
- Ensure that Local Property Tax (LPT) is paid, or payment is arranged.
- Check that your chosen contractor has a VAT number and is tax compliant.
- Ensure that the type of work being carried out qualifies (view section at bottom of page).
- If you are a local authority tenant it is necessary to get written authorisation from the local authority prior to work being carried out.
- Retain all supporting documentation, such as estimates, receipts, tax clearance certificates etc.
- Supply the contractor with the LPT ID (but not your LPT PIN or Personal Public Service Number).
Upgrading your septic tank
Such septic tank grants and incentive options can be used to install the market leading Tricel Novo wastewater treatment plant.
With an excellent high-strength and light-weight composition, you can be ensured of simplified logistics, ease of installation and long-term durability.
Qualifying time-frame for the HRI scheme
• Homeowners – 25 Oct 2013 to 31 Dec 2018
• Landlords – 15 Oct 2014 to 31 Dec 2018
• Local authority tenants – 1 Jan 2017 to 31 Dec 2018
You will be unable to claim for work paid for after the closing date (31 Dec 2018).
Qualifying renovation types
Repair, renovation and improvement work fall within the scope of this scheme. This includes:
- Septic tank repair or replacement
- Garden landscaping
- Work on rainwater harvesting systems
- Work on garages driveways and landscaping
- Extensions and attic conversions
- Window replacement
A complete list of qualifying works is available on revenue.ie.
Tricel is a global provider of high-performance, innovation-based solutions for the Water, Environmental, Construction and Distribution industries with over 60 years of highly successful business operations.
If you have any further queries, contact a specialist member of our technical team today.
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