FINANCE MINISTER PASCHAL Donohoe has announced that parents paying for their child’s accommodation while attending third-level education will be able to access the €500 rent tax credit.

The new tax credit was announced as part of Budget 2023.

Announcing the updated plan this afternoon, Donohoe said that any parent that pays the rent of a child living in Residential Tenancies Board (RTB) registered accommodation would be able to access the €500 credit.

Student accommodation owned by third-level institutions are currently covered by the RTB.

“Today I’m announcing the parents of third level students will now be able to avail of relief when they pay their child’s rent and the student is in a residential tenancy board registered tenancy,” Donohoe said.

“This will give further support works towards the cost of third-level education and builds on the measures announced in Budget 2023 for students, including the €1000 reduction in the student contribution fee for this academic year.”

The rent credit will apply for 2023 and subsequent years up to 2025, but will also be available to be claimed for 2022.

This means a maximum of €1,000 may be claimed by renters in 2023.

Announcing the measure in the Budget, Donohoe said that it was aimed at anyone who does not currently receive housing supports, like the Housing Assistance Payment (HAP).

When asked how much the updated scheme would cost, Donohoe said that it was “broadly consistent” with figures previously announced as part of Budget 2023.

Further details of the renters credit will be set out when Donohoe publishes the Finance Bill on Thursday.

This means that the total cost for the rental credit each year will be €200 million.

A previous renters credit was phased out by 2018.

Ahead of today’s announcement, Donohoe had estimated that 400,000 people would likely be able to claim the credit.

The credit itself will be claimed on an individual basis, except for married couples and civil partners, and the landlord must be registered with the RTB.