The increase in the tax credit for household expenses will speed up renovations and support employment 

The Finnish Commerce Federation considers the increase in the tax credit for household expenses and the support package for the renovations of housing companies agreed by the government in the budget framework session to be a sensible solution that will support growth and employment. The decision is an important recovery measure for the hardware trade, interior design trade and construction trade, which have suffered severely from the recession in recent years.

The government will increase the tax credit for household expenses entitling to renovation work to EUR 2,100 and the share of work entitling to the tax credit to 40 per cent. The deductible will remain unchanged.

“The Finnish Commerce Federation has proposed increasing the tax credit for household expenses as a targeted growth measure for construction and renovations. It’s great that the government has taken this fast-acting measure. The increase in the tax credit will encourage households to start renovation projects, which will be directly reflected in the employment in the sector and the demand in the hardware and interior design trade,” says Kari Luoto, Managing Director of the Finnish Commerce Federation.

In Sweden, the tax credit for household expenses was increased for a fixed period as a response to difficulties in the construction sector. The share of compensation was increased from 30 per cent to 50 per cent for May–December in 2025. The temporary increase quickly increased the number of renovations.

“The measure proposed by the government is a much-needed positive message that encourages consumers to tackle the need for renovations that has accumulated over the years. If the temporary increase will prove to work, the increased level of tax credit for household expenses should be made permanent,” says Luoto.

For further information, please contact: Kari Luoto, Managing Director, Finnish Commerce Federation, tel. +358 (0) 400 688 708, kari.luoto(at)kauppa.fi