Those who know how to take advantage of the craftsman bonus can secure financial support for renovation work
Since July 1, 2014, private individuals have been able to receive a subsidy of up to 600 euros for renovation work. The goal of the craftsman bonus is to promote the renovation and modernization of apartments and houses by creating a financial incentive. The condition is that craftsmen must be hired for the renovation work. In this way, the economy is to be stimulated, leading to greater productivity and an improved order situation in the craft sector. In addition, undeclared work should be combated. But what is the real benefit of introducing the craftsman bonus? And has the financial support for renovation work already made a noticeable difference for the Austrian economy? All these questions are answered in a short overview.
The benefits of the craftsman bonus for renovation work
The craftsman bonus, which is paid for renovation work carried out by craftsmen, amounts to up to 600 euros per measure. The money is drawn from a fund with a total sum of 10 million euros. In 2015, the total sum was even to be increased to 20 million euros.
Specifically, this means that private clients get 20% of the costs for renovation and modernization work reimbursed through state subsidies. However, the maximum reimbursement can only be 600 euros. The craftsman bonus can only be applied for once per applicant within a calendar year, the renovation work must be completed by December 31, 2015, and the invoices from the craft businesses must be submitted when applying for the craftsman bonus.
But what benefit does the state derive from promoting renovation and modernization measures in private households?
The reason for this is the weakening construction industry. Hardly anyone is willing to spend large sums of money on renovations anymore. This development is clearly noticeable in the construction industry; the order situation has declined alarmingly and building material dealers are left with their products. Dealers for building materials such as parquet, are increasingly selling via the internet, but still cannot record the desired turnover. This has direct effects on the gross domestic product. In 2014, the renovation volume in Austria fell by a full 8.4% – alarming figures that are forcing governments to take unusual measures.
Is a recovery of the construction industry possible through the craftsman bonus?
The craftsman bonus is intended to aim for a regeneration of the renovation market. However, the funding programs that have been launched for renovation measures (such as the craftsman bonus) have not yet caused a drastic change in the situation of the construction industry. Even if the funds available for the support programs are exhausted, this is by no means an indication that the situation of craft businesses and renovation service providers in Austria has improved.
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