Letterkenny to Benefit from Tax Incentives for Property Revitalization

A new tax incentive scheme targeting dereliction is set to launch in Letterkenny, enhancing efforts to rejuvenate historic urban centers. The initiative, known as the Living City scheme, will commence in June 2024 and aims to provide tax relief for the refurbishment of residential properties and the upgrading of commercial spaces.

The Department of Housing, Local Government and Heritage announced this week that the program will continue until 2030 and will now include properties constructed before 1975. This expansion will assist in converting “over-the-shop” premises into residential units, further revitalizing older city areas. Currently, the initiative operates in cities like Cork, Dublin, Galway, Kilkenny, Limerick, and Waterford.

Tánaiste Simon Harris confirmed that Letterkenny will join five other towns, including Athlone, Sligo, Drogheda, and Dundalk, in benefiting from this scheme. Applications for the program will open shortly after its launch.

Local Councillor Jimmy Kavanagh expressed his enthusiasm for the initiative, noting its potential to breathe new life into Letterkenny. “Donegal has already seen huge success with the vacant/derelict properties refurbishment grant, attracting the highest number of applications in the country and disbursing over €20 million in grants,” Kavanagh stated. He emphasized that this new initiative would complement existing efforts to address dereliction and housing shortages in the town.

Kavanagh added that the Living City Initiative is a significant step toward transforming Letterkenny, enhancing its appeal for both residents and businesses. The initiative is expected to help reduce anti-social behavior associated with derelict buildings while improving the town’s overall aesthetics.

During a session in the Dáil on Tuesday evening, Harris outlined the next steps for implementation. “The first step is to engage with the local authorities, and I will write to them all this week or early next week,” he said. He proposed a deadline of the end of January for local authorities to submit their plans for the areas covered by the initiative.

Harris emphasized the importance of stimulating investment within towns that have faced prolonged dereliction. “This scheme can help bring new life and vibrancy into town centers while also addressing housing issues,” he stated. The goal is to finalize the planning process by the end of the first quarter of 2024 and to open applications as soon as possible thereafter.

If the initiative proves successful in the initial towns, Harris indicated that consideration could be given to expanding the program to additional areas. The focus, for now, remains on effectively launching the project and facilitating applications to invigorate urban landscapes throughout the country.

This new development in Letterkenny represents a targeted approach to combat urban decay and foster sustainable community growth, paving the way for a more vibrant and livable environment.