It has been reported this week that the government may be considering re-introducing tax incentive schemes in order to foster development in regions outside Dublin. Previous tax incentive schemes that have been introduced are due to finish some time in 2008. Earlier incentives include section 23 and section 50 initiatives. These initiatives were hugely successful in attracting investment to developing regional towns although they did attract some criticism as many felt that these tax incentives allowed wealthier landlords to avail of further tax breaks at the expense of locals.
The proposed incentives will be strongly linked to the National Spatial Strategy, 2002. This decentralization strategy was launched with the intention of drawing individuals away from the capital city and building a thriving nationwide business network instead. These proposed schemes are being designed with the midland towns of Athlone and Mullingar in mind. Other towns that will reportedly be designated these new tax incentives include Dundalk and Letterkenny.
It is also alleged that the ‘living over the shop’ scheme is due for re-introduction. This refers to tax incentives for individuals that reside in apartments above retail units.
The introduction of these tax incentives could provide welcome relief to those that can’t afford to purchase in Dublin. It is hoped that they will generate more economic possibilities as regards jobs and housing in regional towns by attracting increasing amounts of investment.