Shay Brennan presses minister on rent tax credit uptake

Minister, could you confirm the number of taxpayer units that have made claims for the rent tax credit since its introduction in December 2022? With Budget 2025 further increasing the credit to 1,000 for individuals and 2,000 for jointly assessed couples, can you comment on the scale of uptake and effectiveness of this credit in supporting private renters and make a statement on how it fits within the Government's broader strategy to assist those struggling with high rents? The rent tax credit was introduced by the Finance Act of 2022 and may be claimed in respect of qualifying rent paid in 2022 and in the subsequent years to the end of 2025. The value of the credit was €500 for a single person and €1000 for a jointly assessed couple. For the years 2024 and 2025 the value of the credit increased to €1000 for a single person and €2000 for a jointly assessed couple. The rent tax credit has played a valuable role in providing financial support to renters right across the country. I am informed by revenue that 313,980 taxpayers, both PAYE and self-assessed taxpayers, claimed the rent tax credit for 2022. Of these, 273,160 taxpayer units benefited from the rent tax credit in that year. The extent to which a claim benefits from a tax credit to a reduced liability or a receipt of a refund for overpayment of a tax liability is determined by their gross tax liability and the use of other tax credits and reliefs. Taxpayers who claim the rent tax credit may not benefit from this credit as a result of other release, deductions and tax credits already reducing their net tax liability to nil. To the 1st of July of this year, the number of claims made by taxpayer units in respect of the rent tax credit are as follows. $307,270 for 2023, $289,700 for 2024 and $73,600 for 2025. Thank you, Minister. We are all acutely aware of the persistent challenges facing renters. The rent tax credit introduced in Budget 2023 at €500 has been a tangible intervention for people grappling with higher rental costs. This credit was subsequently increased to €750 and has now reached €1,000 for individuals and has said €2,000 for couples in Budget 2025. Since its inception three years ago, it has offered meaningful assistance to many, easing pressure from rising rents and providing relief for thousands of families and individuals. Recognising the programme for government's commitment to progressively increasing the rent tax credit, will you outline whether additional enhancements are being considered as part of the upcoming budget? Given cost of living issues, do you envisage any further increases to the credit or additional targeted measures aimed at supporting renters in the most acute difficulty? Thank you, Deputy. I am very much aware of the value and role that this rent tax credit does play in helping with the cost of living. That is why over a number of budgets, myself, Minister Chambers and Minister McGrath have made changes in relation to the value of it. In relation to the decisions that will be made on Budget Day, they are being carefully considered at the moment. As I said to you in response to your earlier question, it would not be appropriate for me to indicate now what we are planning to do, but we do have to be very, very careful that we are making these decisions in the backdrop of an economic environment that is very, very uncertain. We have to ensure that any decisions that we make are ones that we are going to be able to afford in the years to come. I am not suggesting that any one measure on their own. It might be something we might not be able to sustain into the future, but all of them put together is where the risk arises. Thank you again, Minister. I think you will probably appreciate most of the questions you are asked between now and October. We will be seeking your plans for the upcoming Budget. Could you provide an update in the meantime on the overall awareness and uptake of the rent tax credit since its launch? My understanding is that the Department of Finance estimates that around 400,000 renters are eligible to claim this relief. In its initial year, some 250,000 to 270,000 taxpayer units made a claim for the credit. By early 2024, claims across the first two years, 2022 and 2023 exceeded 320,000 taxpayer units, with almost 120 million paid out in respect of the year 2022 alone. Given the substantial increase in the value of the credit since then, has there been a commensurate rise in uptake rates and awareness among renters? And what measures are being taken to ensure that all those eligible are availing of the support, particularly as the rental market remains under strain? Thank you. The figures that I shared with you earlier on do show overall that this is a rent tax credit that is now being reasonably broadly used. I do remember when the tax credit was brought in, that in the early period in which it was being made available, I was concerned that the drawdown and use of it was not as broad as I would have hoped, but towards the end of the tax year, we saw more taxpayers who were eligible for us register. In terms of the communication and drawing attention to us, this is where through the advertising that the State does directly, and then the advice that individual taxpayers can receive, this is where it becomes so valuable. This is a rent tax credit that can play a valuable role in helping taxpayers deal with the high cost of rent, and as I said, Deputy, and other rent tax credits and other tax credits as part of the program. Thank you, Minister. Thank you, Minister. Thank you.