Additional amending budget for 2025 – temporarily raised subsidy rate for tax credits on home repairs, conversion and extension

The Riksdag voted in favour of the Government’s proposal to raise the subsidy rate for tax credits on home repairs, conversion and extension from 30 per cent to 50 per cent. The increase will apply between 12 May and 31 December 2025.

Tax credits on home repairs, conversion and extension are deductions which private persons can receive when they hire a company for home repairs, conversion or extension. The proposal is intended to support the construction industry by helping to lessen the impact of the current economic climate.

Tax revenues in the central government budget will be reduced by approximately SEK 4.35 billion. The tax credit on home repairs, conversion and extension is subsidised by the state, which means that the state pays part of the labour costs. The subsidy is paid for by means of a tax reduction which reduces tax revenues to the state.

The Government may submit two ordinary amending budgets per year. However, it may also submit additional amending budgets if it considers that there are special reasons to do so. In the opinion of the Government, the situation of the construction industry in the current economic climate constitutes such a reason, and the Riksdag agrees with this assessment.