A scheme to encourage redevelopment of rundown properties for homes and business in cities is being extended to five provincial towns.
The Living City Initiative – already in place in Dublin, Cork, Limerick, Galway, Waterford and Kilkenny – will apply to Athlone, Drogheda, Dundalk, Letterkenny and Sligo from Friday.
It offers tax relief for the refurbishment or conversion of buildings for residential or commercial use, including partial conversions for “over the shop” living.
Local authorities with responsibility for the five towns have each drawn up Special Regeneration Area (SRA) maps showing the zones where the initiative will apply.
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They are central urban areas characterised by high levels of vacancy, dereliction and underuse, with a large proportion of older buildings that are more costly to refurbish and are at greater risk of falling into dereliction.
Properties built before 1975 may be eligible, a new flexibility this year as the scheme up to now only applied to pre-1915 buildings.
Owner-occupiers can claim income tax relief on the cost of the work at a rate of 15 per cent annually for seven years.
Developers can claim corporation tax relief on work up to €300,000, an increase from the previous €200,000 limit.
The scheme also runs until the end of 2030, an extension from the previous deadline of December 2027.
It first came into effect in 2015 and had around 100 applicants per year in the first five years with average tax relief reaching €25,000.
The Department of Finance estimates it will cost €25 million annually to extend the duration of the scheme and expand it to the five towns.
Tánaiste and Minister for Finance Simon Harris said the scheme would help breathe new life into urban areas while also providing much needed new homes.
“This expansion is about supporting regeneration, bringing vacant and derelict buildings back into use, increasing the supply of homes, and rebuilding the social and economic fabric of our town centres,” he said.
“By supporting refurbishment and encouraging ‘living over the shop’, we can create more homes in our towns, reduce vacancy and restore vibrancy to our main streets.
“I want to see people living again in the hearts of our towns and villages – this initiative is a practical step towards making that happen.”
The SRA maps for the five towns are available for viewing from the local authorities and on gov.ie.
In Athlone a large area of the town centre on both sides of the river Shannon is included.
In Drogheda the main area is north of the Boyne river including long stretches of the quays.
Most of the town centre and old town is included in the Letterkenny SRA, while Sligo’s is concentrated on the eastern side of the town and Dundalk’s on the centre and north of the town.
