Written answer
Tax Reliefs
380. Deputy Eoin Hayes asked the Minister for Finance the monitoring measures his Department will take in assessing the ongoing impact of the enhanced corporation tax deduction for apartment construction; and if he will make a statement on the matter. [61050/25]
Comment on this
The high costs of apartment construction is rendering them not economically viable in the current market, preventing their construction in the numbers required to meet national housing targets. As one element of the Government's overall strategy to accelerate housing delivery, in Budget 2026 I introduced a new enhanced corporation tax deduction of 125% of certain qualifying costs, up to a maximum additional deduction of €50,000 per apartment. This has the potential to providing a net cost reduction of up to €6,250 per apartment, with a view to improving viability of apartment construction.
The enhanced deduction will be available in respect of a qualifying apartment block consisting of 10 or more apartments and is available for both new-build developments and conversion of non-residential buildings into a qualifying apartment block.
A claim may be made, on the company's corporation tax return, once the certificate of compliance on completion for the apartment block is lodged with the relevant local authority.
When making a claim, the company will be required to provide:
• details of the eligible expenditure incurred in respect of the apartment development,
• the number of apartments in the completed development, and
• such other information as Revenue may reasonably require.
As with all tax expenditures, data from tax returns will be used to assess the uptake and effectiveness of the measure. Other non-tax data, such as commencement and completion notices for apartment blocks potentially within scope of the measure, will also provide relevant data.
I would note however that, as this forms part of a suite of measures that have been introduced by the Government to stimulate the housing sector, it would be difficult to isolate and attribute specific impacts to any single measure.