The Minister for Finance Michael Noonan T.D, accompanied by the Minister for the Environment, Community and Local Government today (05th of May) launched the Living City Initiative. This is a new urban regeneration incentive which focuses on the regeneration of the historic centres of six cities, Cork, Dublin, Galway, Kilkenny, Limerick and Waterford. The Living City Initiative is a scheme of property tax reliefs which applies in certain “special regeneration areas” (SRAs). There are 2 types of relief in the Living City Initiative
1. An owner/occupier residential element
2. A retail/ commercial element.
Commenting on the new initiative, Minister Noonan stated: “The launch of the Living City Initiative will lead to the further regeneration of six cities. The aim of the Living City incentive is to bring life back into the heart of these cities by offering tax relief for qualifying expenditure incurred on the refurbishment or conversion of certain buildings where conditions are met.
This is a targeted initiative at areas which are most in need of attention. Planning for the scheme has included a thorough ex-ante cost benefit analysis, and recommendations from relevant agencies. The residential element of the Living City initiative provides for an income tax deduction for qualifying expenditure incurred on the refurbishment or conversion of a building for use as a dwelling, over a ten year period. The building must have been constructed before 1915 and be located in a Special Regeneration Area of the city in question.
The commercial element of the Living City initiative provides for capital allowances over a seven year period in respect of qualifying expenditure incurred on the refurbishment or conversion of a property located in a Special Regeneration Area for use for the purpose of retailing goods or the provision of services within the State. The amount of tax relief available under the commercial element of the incentive is effectively capped at €200,000 for any individual project. There is no restriction on applying for both the commercial and residential elements of the initiative. This is an important initiative which will increase the supply of housing for couples in urban centres”.
Ends 05 May 2015
Notes to Editors
Information on the scheme, including how to apply for it, frequently asked questions, and a map of the special regeneration areas is available on www.finance.gov.ie/living-city-initiative