Couples will be able to claim back as much as €250 on hotel and restaurant bills under the Government's staycation subsidy.
The tax-back scheme is to run from October this year until April 2021 and will apply to hotels, food and non-alcoholic drinks.
Holidaymakers and diners will have to spend up to €625 to claim back the maximum €125 tax rebate. A couple can claim €250.
Last night the final touches were being put on the scheme ahead of an announcement expected today.
The rebate scheme, the first of its kind, is aimed at encouraging consumers to spend money in the hard-hit tourism and hospitality sector.
The scheme, which was developed by Finance Minister Paschal Donohoe and Tourism Minister Catherine Martin, is the centrepiece of the Government's July Stimulus Package.
The Government is still deciding how the rebate can be claimed but it is examining whether an online system or an app could be used to make claiming the rebate as customer-friendly as possible.
The economic stimulus will include several business- focused measures aimed at assisting employers who have been severely affected by the coronavirus.
This includes extending the Temporary Wage Subsidy Scheme (TWWS) into the new year, continuing the waiver on commercial rates and allowing businesses to defer their VAT bills for a period without being penalised.
Meanwhile, small-town Ireland is set to receive a major boost through a range of measures aimed at reviving rural towns and villages in the Government's stimulus package.
The Covid-19 mini budget will include more funding schemes aimed at creating employment and businesses in small rural communities.
This includes expanding the Restart Grant scheme to allow B&Bs and sports clubs to draw down funding of €4,000 to €25,000 a piece.
There will also be new funding for community centres seeking to reopen while adhering to health and safety standards.
A €20m fund will also be created to back local businesses such as boutiques or menswear shops that want to sell clothes online.
And there will be a €10m investment in the existing Town and Village Scheme which supports local initiatives aimed at rejuvenating rural communities.
There are also plans to create an extra 23,000 places on Community Employment Schemes.
The Government wants to ensure there is a balance between investment in urban and rural areas under the July Stimulus Package.
A senior government source said: "We want to make sure it is spread across the country and it's not just urban- centred."
Climate Action Minister Eamon Ryan is expected to announce a €100m retrofitting scheme which will create employment and reduce carbon emissions.
Catherine Martin, who is also Culture Minister, will also announce new funding to allow venues to hold live performances again while adhering to social distancing rules.
Theatres and concert venues have been forced to close their doors for months due to Covid and it is hoped the funding will help them prepare to reopen to the public in the coming months.
Housing Minister Darragh O'Brien has secured around €60m to buy and refurbish vacant houses. The additional funding will be used to create business for small contractors and get more people off the housing list.
The overall stimulus package will feature a significantly enhanced Restart Grant which will offer funding of between €4,000 and €25,000 a time to businesses.
To date, more than 42,000 businesses have applied to the scheme and 31,000 grants have been approved for helping businesses to cover the costs associated with reopening in the wake of the pandemic.
A Government source said the wage subsidy scheme would be extended "to provide greater certainty to workers and employers as our economy continues to recover".
Around 68,000 employers registered with Revenue for the scheme and an estimated 415,000 employees are in receipt of payments.
"It has cost more than €2bn to date, but crucially it has kept hundreds of thousands of people in their jobs," the source added.
Meanwhile, new measures are also expected in relation to low-cost loans for businesses.
Funding is a challenge for many businesses and Tánaiste Leo Varadkar has introduced the new Credit Guarantee Scheme to provide €2bn in low-cost loans to businesses.
The stimulus package is expected to include further measures on cheaper finance to help businesses.
The Government is also planing major investment of more than €100m in school refurbishments and repairs.
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